why Futu Holdings Limited [FUTU] is a Good Choice for Investors After New Price Target of $60.92

Futu Holdings Limited [NASDAQ: FUTU] plunged by -$3.11 during the normal trading session on Tuesday and reaching a high of $52.32 during the day while it closed the day at $46.20. The company report on March 28, 2023 that Futu Records US$292.3 Million Total Revenues for Fourth Quarter 2022, a YoY Increase of 42.3%.

 Its subsidiary moomoo further diversifies businesses and sharpens long-term globalization strategy in Q4.

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Moomoo’s parent company Futu Holdings Limited (Nasdaq: FUTU) (“Futu”, the “Company”), a leading tech-driven digital brokerage and wealth management platform, reported its unaudited financial results for the fourth quarter of 2022. The Company recorded US$292.3 million (HK$2.28 billion) total revenues and US$130 million (HK$1.01 billion) non-GAAP adjusted net income, representing a year-over-year increase of 42.3% and 90.2% respectively.

Futu Holdings Limited stock has also gained 0.98% of its value over the past 7 days. However, FUTU stock has declined by -25.56% in the 3 months of the year. Over the past six months meanwhile, it has gained 21.26% and gained 13.65% year-on date.

The market cap for FUTU stock reached $7.04 billion, with 140.61 million shares outstanding and 84.23 million shares in the current float. Compared to the average trading volume of 3.36M shares, FUTU reached a trading volume of 10601252 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 $60.92 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 1.90. 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 January 03, 2023. While these analysts kept the previous recommendation, BofA Securities dropped their target price from $59.60 to $27. The new note on the price target was released on December 30, 2022, representing the official price target for Futu Holdings Limited stock. Previously, the target price had yet another raise from $61 to $64, while Credit Suisse kept a Neutral rating on FUTU stock. On September 01, 2022, analysts increased their price target for FUTU shares from 55 to 62.

The Average True Range (ATR) for Futu Holdings Limited is set at 2.91, with the Price to Sales ratio for FUTU stock in the period of the last 12 months amounting to 7.97. The Price to Book ratio for the last quarter was 2.53, with the Price to Cash per share for the same quarter was set at 49.80.

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 0.98. With this latest performance, FUTU shares dropped by -0.58% in over the last four-week period, additionally plugging by 21.26% over the last 6 months – not to mention a rise of 23.99% 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 45.84, with the RSI for the last a single of trading hit 44.98, and the three-weeks RSI is set at 46.27 for Futu Holdings Limited [FUTU]. The present Moving Average for the last 50 days of trading for this stock 48.98, while it was recorded at 47.90 for the last single week of trading, and 47.03 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 +50.03 and a Gross Margin at +86.66. Futu Holdings Limited’s Net Margin is presently recorded at +39.50.

Return on Total Capital for FUTU is now 13.83, given the latest momentum, and Return on Invested Capital for the company is 18.96. Return on Equity for this stock inclined to 19.21, with Return on Assets sitting at 3.25. When it comes to the capital structure of this company, Futu Holdings Limited [FUTU] has a Total Debt to Total Equity ratio set at 52.83. Additionally, FUTU Total Debt to Total Capital is recorded at 34.57, with Total Debt to Total Assets ending up at 10.92. Long-Term Debt to Equity for the company is recorded at 0.78, with the Long-Term Debt to Total Capital now at 0.51.

Reflecting on the efficiency of the workforce at the company, Futu Holdings Limited [FUTU] managed to generate an average of $155,972 per employee. Receivables Turnover for the company is 0.77 with a Total Asset Turnover recorded at a value of 0.08.Futu Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.

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

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 1.57%.

Futu Holdings Limited [FUTU]: Insider Ownership positions

There are presently around $1,586 million, or 35.40% of FUTU stock, in the hands of institutional investors. The top three institutional holders of FUTU stocks are: ASPEX MANAGEMENT (HK) LTD with ownership of 3,050,268, which is approximately -26.676% of the company’s market cap and around 15.04% of the total institutional ownership; BLACKROCK INC., holding 2,689,138 shares of the stock with an approximate value of $132.6 million in FUTU stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $123.12 million in FUTU stock with ownership of nearly -33.911% of the company’s market capitalization.

Positions in Futu Holdings Limited stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 115 institutional holders increased their position in Futu Holdings Limited [NASDAQ:FUTU] by around 9,414,492 shares. Additionally, 81 investors decreased positions by around 7,461,697 shares, while 24 investors held positions by with 15,288,357 shares. The mentioned changes placed institutional holdings at 32,164,546 shares, according to the latest SEC report filing. FUTU stock had 45 new institutional investments in for a total of 3,104,414 shares, while 19 institutional investors sold positions of 1,016,341 shares during the same period.


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