BofA Securities slashes price target on Futu Holdings Limited [FUTU] – find out why.

Futu Holdings Limited [NASDAQ: FUTU] plunged by -$6.98 during the normal trading session on Wednesday and reaching a high of $149.90 during the day while it closed the day at $146.12. The company report on June 3, 2021 that Futu sustains leading position by obtaining “BBB” credit rating from S&P, becoming first online brokerage in APAC with international rating.

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Futu Holdings Limited (“Futu”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, is pleased to announce that it has obtained a “bbb” GCP (group credit profile) and a “BBB” investment grade long-term issuer credit rating from S&P Global Ratings (“S&P”). The outlook on the long-term rating is stable.

S&P expects that Futu will maintain its competitive position in the online brokerage industry and sustain its strong capitalization and adequate risk controls, along with business growth. Futu has thus become the first online brokerage in APAC to earn an international rating and the first Hong-Kong-based broker to obtain a standalone investment grade issuer rating.

Futu Holdings Limited stock has also gained 0.30% of its value over the past 7 days. However, FUTU stock has inclined by 7.73% in the 3 months of the year. Over the past six months meanwhile, it has gained 256.39% and gained 219.39% year-on date.

The market cap for FUTU stock reached $21.24 billion, with 142.33 million shares outstanding and 53.39 million shares in the current float. Compared to the average trading volume of 7.64M shares, FUTU reached a trading volume of 3672868 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about 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 $195.65 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 1.80. 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.

BofA Securities have made an estimate for Futu Holdings Limited shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 26, 2021. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Overweight. The new note on the price target was released on February 16, 2021, representing the official price target for Futu Holdings Limited stock.

The Average True Range (ATR) for Futu Holdings Limited is set at 10.45, with the Price to Sales ratio for FUTU stock in the period of the last 12 months amounting to 32.80. The Price to Book ratio for the last quarter was 17.01, with the Price to Cash per share for the same quarter was set at 61.84.

FUTU stock trade performance evaluation

Futu Holdings Limited [FUTU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.30. With this latest performance, FUTU shares gained by 20.07% in over the last four-week period, additionally plugging by 256.39% over the last 6 months – not to mention a rise of 566.00% 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 52.53, with the RSI for the last a single of trading hit 51.36, and the three-weeks RSI is set at 52.34 for Futu Holdings Limited [FUTU]. The present Moving Average for the last 50 days of trading for this stock 141.04, while it was recorded at 148.76 for the last single week of trading, and 90.66 for the last 200 days.

Futu Holdings Limited [FUTU]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Futu Holdings Limited [FUTU] shares currently have an operating margin of +49.92 and a Gross Margin at +82.16. Futu Holdings Limited’s Net Margin is presently recorded at +40.04.

Return on Total Capital for FUTU is now 13.98, given the latest momentum, and Return on Invested Capital for the company is 23.58. Return on Equity for this stock inclined to 24.44, with Return on Assets sitting at 2.86. When it comes to the capital structure of this company, Futu Holdings Limited [FUTU] has a Total Debt to Total Equity ratio set at 134.31. Additionally, FUTU Total Debt to Total Capital is recorded at 57.32, with Total Debt to Total Assets ending up at 15.64. Long-Term Debt to Equity for the company is recorded at 2.68, with the Long-Term Debt to Total Capital now at 1.14.

Reflecting on the efficiency of the workforce at the company, Futu Holdings Limited [FUTU] managed to generate an average of $129,964 per employee. Receivables Turnover for the company is 0.66 with a Total Asset Turnover recorded at a value of 0.07.

Earnings per share (EPS) analysis for Futu Holdings Limited [FUTU] stock

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 9.04%.

Futu Holdings Limited [FUTU]: Insider Ownership positions

There are presently around $3,365 million, or 29.20% of FUTU stock, in the hands of institutional investors. The top three institutional holders of FUTU stocks are: TIGER GLOBAL MANAGEMENT LLC with ownership of 3,340,000, which is approximately New of the company’s market cap and around 8.15% of the total institutional ownership; GENERAL ATLANTIC LLC, holding 3,288,333 shares of the stock with an approximate value of $480.49 million in FUTU stocks shares; and SC CHINA HOLDING LTD, currently with $346.9 million in FUTU stock with ownership of nearly New 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 May and at the time of the May reporting period, where 121 institutional holders increased their position in Futu Holdings Limited [NASDAQ:FUTU] by around 11,621,047 shares. Additionally, 79 investors decreased positions by around 21,122,858 shares, while 6 investors held positions by with 9,713,169 shares. The mentioned changes placed institutional holdings at 23,030,736 shares, according to the latest SEC report filing. FUTU stock had 89 new institutional investments in for a total of 10,378,677 shares, while 23 institutional investors sold positions of 3,872,867 shares during the same period.

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