Taking on analysts’ expectations and winning: Futu Holdings Limited (FUTU)

Futu Holdings Limited (NASDAQ: FUTU) stock jumped 2.53% on Friday to $52.99 against a previous-day closing price of $51.68. With 3.22 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.67 million shares. During the session, the Capital Markets company that operates in wider Financial sector, reached to the highest price of $53.50 whereas the lowest price it dropped to was $52.02. The 52-week range on FUTU shows that it touched its highest point at $72.20 and its lowest point at $21.23 during that stretch. It currently has a 1-year price target of $59.28. Beta for the stock currently stands at 0.74.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FUTU was up-trending over the past week, with a rise of 10.46%, but this was down by -18.11% over a month. Three-month performance surged to 55.53% while six-month performance rose 12.77%. The stock gained 9.26% in the past year, while it has gained 30.36% so far this year. A look at the trailing 12-month EPS for FUTU yields 2.15 with Next year EPS estimates of 3.18. For the next quarter, that number is 0.70. This implies an EPS growth rate of 82.50% for this year and 23.30% for next year. EPS is expected to grow by 1.57% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 80.60%.


Float and Shares Shorts:

At present, 140.61 million FUTU shares are outstanding with a float of 81.62 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.31 million, which was 5.65% higher than short shares on Sep 14, 2022. In addition to Mr. Hua Li as the firm’s Founder, Chairman & CEO, Mr. Yu Chen serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 36.23% of FUTU’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.96% of FUTU, in contrast to 20.92% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in FUTU with 4.44% of the stake, Capital Research & Management Co holds 3,777,922 shares worth 3,777,922. A second-largest stockholder of FUTU, BlackRock Fund Advisors, holds 1,874,037 shares, controlling over 2.20% of the firm’s shares. Millennium Management LLC is the third largest shareholder in FUTU, holding 1,606,636 shares or 1.89% stake. With a 2.44% stake in FUTU, the American Funds EuroPacific Growth is the largest stakeholder. A total of 2,076,581 shares are owned by the mutual fund manager. The American Funds Insurance Series -, which owns about 0.44% of FUTU stock, is the second-largest Mutual Fund holder. It holds 375,890 shares valued at 15.28 million. iShares Tr. – Core MSCI EAFE ETF holds 0.38% of the stake in FUTU, owning 320,841 shares worth 13.04 million.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FUTU since 22 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FUTU analysts setting a high price target of $761.89 and a low target of $210.73, the average target price over the next 12 months is $466.61. Based on these targets, FUTU could surge 1337.8% to reach the target high and rise by 297.68% to reach the target low. Reaching the average price target will result in a growth of 780.56% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FUTU will report FY 2022 earnings on 03/08/2024. Analysts have provided yearly estimates in a range of $22.19 being high and $17.27 being low. For FUTU, this leads to a yearly average estimate of $19.69. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Futu Holdings Limited surprised analysts by $0.10 when it reported $0.68 EPS against a consensus estimate of $0.58. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $5.47 and the low estimate is $4.82. The average estimate for the next quarter is thus $5.15.

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