For Futu Holdings Limited [FUTU], Analyst sees a drop to $27. What next?



Futu Holdings Limited [NASDAQ: FUTU] loss -3.43% on the last trading session, reaching $33.21 price per share at the time. The company report on April 14, 2022 that Futu SG (moomoo) achieves 4.3 times over-subscription of iWOW shares, grabs over 80% of total subscribers.

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– Homegrown technology company, iWOW, lists on SGX Catalist Board today; with Futu SG (moomoo), its main placement agent and underwriter, announcing it has achieved an oversubscription of 4.3 times of iWOW shares.

– Futu SG (moomoo)’s innovative marketing also saw it attracting a high number of subscribers of over 1,000 who participated in the IPO via moomoo, which represents over 80% of total number of valid applicants.

Futu Holdings Limited represents 153.26 million in outstanding shares, while the company has a total market value of $5.00 billion with the latest information. FUTU stock price has been found in the range of $32.26 to $33.85.

If compared to the average trading volume of 6.30M shares, FUTU reached a trading volume of 3039046 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $68.63 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 1.50. 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.

CLSA have made an estimate for Futu Holdings Limited shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on March 14, 2022. The new note on the price target was released on October 29, 2021, representing the official price target for Futu Holdings Limited stock. Previously, the target price had yet another raise to $110, while CLSA analysts kept a Buy rating on FUTU stock.

The Average True Range (ATR) for Futu Holdings Limited is set at 3.53, with the Price to Sales ratio for FUTU stock in the period of the last 12 months amounting to 5.50. The Price to Book ratio for the last quarter was 1.90, with the Price to Cash per share for the same quarter was set at 51.36.

Trading performance analysis for FUTU stock

Futu Holdings Limited [FUTU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.92. With this latest performance, FUTU shares dropped by -11.68% in over the last four-week period, additionally sinking by -50.06% over the last 6 months – not to mention a drop of -74.96% 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 43.97, with the RSI for the last a single of trading hit 41.27, and the three-weeks RSI is set at 44.98 for Futu Holdings Limited [FUTU]. The present Moving Average for the last 50 days of trading for this stock 37.66, while it was recorded at 34.25 for the last single week of trading, and 66.01 for the last 200 days.

Futu Holdings Limited [FUTU]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Futu Holdings Limited [FUTU] shares currently have an operating margin of +50.03 and a Gross Margin at +86.66. Futu Holdings Limited’s Net Margin is presently recorded at +39.50.

Return on Equity for this stock inclined to 19.21, with Return on Assets sitting at 3.25.

Futu Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

Futu Holdings Limited [FUTU]: An earnings per share (EPS) analysis

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 9.03%.

An analysis of insider ownership at Futu Holdings Limited [FUTU]

There are presently around $1,256 million, or 45.10% of FUTU stock, in the hands of institutional investors. The top three institutional holders of FUTU stocks are: CAPITAL RESEARCH GLOBAL INVESTORS with ownership of 6,361,245, which is approximately 0.049% of the company’s market cap and around 8.75% of the total institutional ownership; TIGER GLOBAL MANAGEMENT LLC, holding 4,189,846 shares of the stock with an approximate value of $144.09 million in FUTU stocks shares; and ASPEX MANAGEMENT (HK) LTD, currently with $133.04 million in FUTU stock with ownership of nearly New of the company’s market capitalization.

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 86 institutional holders increased their position in Futu Holdings Limited [NASDAQ:FUTU] by around 11,300,648 shares. Additionally, 121 investors decreased positions by around 8,324,512 shares, while 26 investors held positions by with 16,895,726 shares. The mentioned changes placed institutional holdings at 36,520,886 shares, according to the latest SEC report filing. FUTU stock had 26 new institutional investments in for a total of 6,388,968 shares, while 56 institutional investors sold positions of 3,152,052 shares during the same period.