Futu Holdings Limited [FUTU] moved down -4.20: Why It’s Important

Futu Holdings Limited [NASDAQ: FUTU] stock went on a downward path that fall over -4.20% on Tuesday, amounting to a one-week price decrease of less than -12.47%. The company report on December 8, 2020 that Futu Announces Agreement to Purchase Shares by a Leading Global Investment Firm.

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Futu Holdings Limited (NASDAQ: FUTU) (“Futu” or the “Company”), a leading tech-driven online brokerage and wealth management platform in China, announced that a leading global investment firm has agreed to purchase approximately 50,000,000 Class A ordinary shares of the Company in the form of prepaid warrants for an aggregate purchase price of approximately US$260,000,000.

The transaction is subject to customary closing conditions and the closing is expected to take place in the near future. The share issuance is exempt from registration under the Securities Act of 1933, as amended, (the “Securities Act”) in compliance with Regulation S under the Securities Act.

Over the last 12 months, FUTU stock rose by 1293.25%. The one-year Futu Holdings Limited stock forecast points to a potential downside of -92.28. The average equity rating for FUTU stock is currently 1.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $20.49 billion, with 130.19 million shares outstanding and 52.11 million shares in the current float. Compared to the average trading volume of 7.41M shares, FUTU stock reached a trading volume of 13338975 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Futu Holdings Limited [FUTU]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FUTU shares is $86.95 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FUTU stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Futu Holdings Limited shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on February 16, 2021.

The Average True Range (ATR) for Futu Holdings Limited is set at 20.54, with the Price to Sales ratio for FUTU stock in the period of the last 12 months amounting to 65.24. The Price to Book ratio for the last quarter was 29.59, with the Price to Cash per share for the same quarter was set at 36.02.

FUTU Stock Performance Analysis:

Futu Holdings Limited [FUTU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.47. With this latest performance, FUTU shares gained by 67.37% in over the last four-week period, additionally plugging by 428.91% over the last 6 months – not to mention a rise of 1293.25% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for FUTU stock in for the last two-week period is set at 63.03, with the RSI for the last a single of trading hit 58.83, and the three-weeks RSI is set at 65.33 for Futu Holdings Limited [FUTU]. The present Moving Average for the last 50 days of trading for this stock 90.49, while it was recorded at 177.31 for the last single week of trading, and 44.94 for the last 200 days.

Insight into Futu Holdings Limited Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Futu Holdings Limited [FUTU] shares currently have an operating margin of +26.11 and a Gross Margin at +75.64. Futu Holdings Limited’s Net Margin is presently recorded at +15.61.

Return on Total Capital for FUTU is now 8.04, given the latest momentum, and Return on Invested Capital for the company is 8.63. Return on Equity for this stock inclined to 9.04, with Return on Assets sitting at 0.88. When it comes to the capital structure of this company, Futu Holdings Limited [FUTU] has a Total Debt to Total Equity ratio set at 64.41. Additionally, FUTU Total Debt to Total Capital is recorded at 39.18, with Total Debt to Total Assets ending up at 7.67. Long-Term Debt to Equity for the company is recorded at 6.77, with the Long-Term Debt to Total Capital now at 4.12.

Reflecting on the efficiency of the workforce at the company, Futu Holdings Limited [FUTU] managed to generate an average of $24,963 per employee. Receivables Turnover for the company is 0.79 with a Total Asset Turnover recorded at a value of 0.06.


With the latest financial reports released by the company, Futu Holdings Limited posted 0.02/share EPS, while the average EPS was predicted by analysts to be reported at 0.05/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -60.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for FUTU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Futu Holdings Limited go to 17.25%.

Futu Holdings Limited [FUTU] Insider Position Details

There are presently around $5,442 million, or 50.70% of FUTU stock, in the hands of institutional investors. The top three institutional holders of FUTU stocks are: ANGLEPOINT ASSET MANAGEMENT, LTD. with ownership of 6,336,714, which is approximately 49.325% of the company’s market cap and around 0.99% of the total institutional ownership; GENERAL ATLANTIC LLC, holding 3,288,333 shares of the stock with an approximate value of $549.78 million in FUTU stocks shares; and GOLDMAN SACHS GROUP INC, currently with $464.4 million in FUTU stock with ownership of nearly 7790.01% of the company’s market capitalization.

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Positions in Futu Holdings Limited stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 100 institutional holders increased their position in Futu Holdings Limited [NASDAQ:FUTU] by around 18,121,089 shares. Additionally, 32 investors decreased positions by around 3,678,065 shares, while 4 investors held positions by with 10,750,511 shares. The mentioned changes placed institutional holdings at 32,549,665 shares, according to the latest SEC report filing. FUTU stock had 60 new institutional investments in for a total of 4,601,405 shares, while 19 institutional investors sold positions of 1,542,017 shares during the same period.

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