Is Futu Holdings Stock a Good Investment?
Futu Holdings Investment Advice | FUTU |
- Examine Futu Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Futu Holdings' leadership team and their track record. Good management can help Futu Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Investment Banking & Brokerage space and any emerging trends that could impact Futu Holdings' business and its evolving consumer preferences.
- Compare Futu Holdings' performance and market position to its competitors. Analyze how Futu Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if Futu Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Futu Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Futu Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Futu Holdings is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Excited | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Futu Holdings Stock
Researching Futu Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company shares are held by company insiders. The book value of Futu Holdings was currently reported as 178.3. The company last dividend was issued on the 10th of January 2025.
To determine if Futu Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Futu Holdings' research are outlined below:
| Futu Holdings had very high historical volatility over the last 90 days | |
| Futu Holdings currently holds about 6.3 B in cash with (6.34 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 44.24. | |
| Roughly 16.0% of the company shares are held by company insiders | |
| Latest headline from news.google.com: 6,067 Shares in Futu Holdings Limited Acquired by Diversify Wealth Management LLC - MarketBeat |
Futu Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Futu Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Futu Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of March 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 26th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Futu Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Futu Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-08-26 | 2019-06-30 | 0.55 | 0.47 | -0.08 | 14 | ||
2019-05-24 | 2019-03-31 | 0.69 | 0.61 | -0.08 | 11 | ||
2020-03-18 | 2019-12-31 | 0.2 | 0.39 | 0.19 | 95 | ||
2019-11-22 | 2019-09-30 | 0.38 | 0.19 | -0.19 | 50 | ||
2020-11-19 | 2020-09-30 | 2.78 | 3.09 | 0.31 | 11 | ||
2020-05-14 | 2020-03-31 | 0.72 | 1.27 | 0.55 | 76 | ||
2021-03-16 | 2020-12-31 | 3.35 | 4.03 | 0.68 | 20 | ||
2021-08-31 | 2021-06-30 | 4.64 | 3.58 | -1.06 | 22 |
Know Futu Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Futu Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Futu Holdings backward and forwards among themselves. Futu Holdings' institutional investor refers to the entity that pools money to purchase Futu Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Legal & General Group Plc | 2024-09-30 | 468.8 K | Jane Street Group Llc | 2024-09-30 | 447.2 K | Goldman Sachs Group Inc | 2024-09-30 | 433.1 K | Healthcare Of Ontario Pension Plan Trust Fund | 2024-09-30 | 417.6 K | Caisse De Depot Et Placement Du Quebec Usd | 2024-09-30 | 410.5 K | Caisse De Depot Et Placement Du Quebec Usd | 2024-09-30 | 410.5 K | Aspex Management (hk) Ltd | 2024-09-30 | 4.6 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 3 M | Blackrock Inc | 2024-09-30 | 2.6 M | Greenwoods Asset Management Hong Kong Ltd. | 2024-09-30 | 1.9 M | T. Rowe Price Associates, Inc. | 2024-09-30 | 1.6 M |
Futu Holdings' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 13.4 B.Market Cap |
|
Futu Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.04 | |
| Return On Capital Employed | 0.18 | 0.19 | |
| Return On Assets | 0.04 | 0.04 | |
| Return On Equity | 0.20 | 0.19 |
Determining Futu Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if Futu Holdings is a good buy. For example, gross profit margin measures Futu Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Futu Holdings' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Futu Holdings' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Futu Holdings. Check Futu Holdings' Beneish M Score to see the likelihood of Futu Holdings' management manipulating its earnings.
Evaluate Futu Holdings' management efficiency
Futu Holdings has return on total asset (ROA) of 0.0374 % which means that it generated a profit of $0.0374 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1708 %, meaning that it created $0.1708 on every $100 dollars invested by stockholders. Futu Holdings' management efficiency ratios could be used to measure how well Futu Holdings manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Futu Holdings' Return On Tangible Assets are comparatively stable compared to the past year. Return On Capital Employed is likely to gain to 0.19 in 2025, whereas Return On Equity is likely to drop 0.19 in 2025. At this time, Futu Holdings' Total Current Liabilities is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 87.6 B in 2025, whereas Liabilities And Stockholders Equity is likely to drop slightly above 57.4 B in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 157.85 | 165.74 | |
| Tangible Book Value Per Share | 157.38 | 165.25 | |
| Enterprise Value Over EBITDA | 13.48 | 12.81 | |
| Price Book Value Ratio | 2.19 | 2.30 | |
| Enterprise Value Multiple | 13.48 | 12.81 | |
| Price Fair Value | 2.19 | 2.30 | |
| Enterprise Value | 54.6 B | 57.4 B |
Understanding the operational decisions made by Futu Holdings management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 0.747 |
Basic technical analysis of Futu Stock
As of the 30th of January, Futu Holdings shows the Mean Deviation of 3.26, coefficient of variation of 1926.15, and Downside Deviation of 4.27. Futu Holdings technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Futu Holdings' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Futu Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on Futu Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Futu Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Spencer Christopher J over six months ago Acquisition by Spencer Christopher J of 70375 shares of Futu Holdings at 0.089 subject to Rule 16b-3 |
Futu Holdings' Outstanding Corporate Bonds
Futu Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Futu Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Futu bonds can be classified according to their maturity, which is the date when Futu Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Futu Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Futu Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0518 | |||
| Market Risk Adjusted Performance | 0.3815 | |||
| Mean Deviation | 3.26 | |||
| Semi Deviation | 4.05 | |||
| Downside Deviation | 4.27 | |||
| Coefficient Of Variation | 1926.15 | |||
| Standard Deviation | 4.71 | |||
| Variance | 22.17 | |||
| Information Ratio | 0.0339 | |||
| Jensen Alpha | 0.1872 | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | 0.0373 | |||
| Treynor Ratio | 0.3715 | |||
| Maximum Drawdown | 29.1 | |||
| Value At Risk | (6.07) | |||
| Potential Upside | 7.83 | |||
| Downside Variance | 18.25 | |||
| Semi Variance | 16.44 | |||
| Expected Short fall | (3.60) | |||
| Skewness | 0.546 | |||
| Kurtosis | 3.35 |
| Risk Adjusted Performance | 0.0518 | |||
| Market Risk Adjusted Performance | 0.3815 | |||
| Mean Deviation | 3.26 | |||
| Semi Deviation | 4.05 | |||
| Downside Deviation | 4.27 | |||
| Coefficient Of Variation | 1926.15 | |||
| Standard Deviation | 4.71 | |||
| Variance | 22.17 | |||
| Information Ratio | 0.0339 | |||
| Jensen Alpha | 0.1872 | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | 0.0373 | |||
| Treynor Ratio | 0.3715 | |||
| Maximum Drawdown | 29.1 | |||
| Value At Risk | (6.07) | |||
| Potential Upside | 7.83 | |||
| Downside Variance | 18.25 | |||
| Semi Variance | 16.44 | |||
| Expected Short fall | (3.60) | |||
| Skewness | 0.546 | |||
| Kurtosis | 3.35 |
Consider Futu Holdings' intraday indicators
Futu Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Futu Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 176488.0 | |||
| Daily Balance Of Power | 0.4863 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 100.28 | |||
| Day Typical Price | 100.25 | |||
| Price Action Indicator | 1.42 | |||
| Period Momentum Indicator | 3.01 |
Futu Holdings Corporate Filings
6K | 19th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 14th of August 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
| 24th of April 2024 Other Reports | ViewVerify |
Futu Stock media impact
Far too much social signal, news, headlines, and media speculation about Futu Holdings that are available to investors today. That information is available publicly through Futu media outlets and privately through word of mouth or via Futu internal channels. However, regardless of the origin, that massive amount of Futu data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Futu Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Futu Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Futu Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Futu Holdings alpha.
Futu Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Futu Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Futu Holdings Maximum Pain Price Across March 21st 2025 Option Contracts
Futu Holdings' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Futu Holdings close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Futu Holdings' options.
Futu Holdings Corporate Management
| Hua Li | Chairman Founder | Profile | |
| Yu Chen | Chief Officer | Profile | |
| ChingYee Poon | Head Compliance | Profile | |
| Daniel Yuan | Chief Relations | Profile |
Additional Tools for Futu Stock Analysis
When running Futu Holdings' price analysis, check to measure Futu Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Futu Holdings is operating at the current time. Most of Futu Holdings' value examination focuses on studying past and present price action to predict the probability of Futu Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Futu Holdings' price. Additionally, you may evaluate how the addition of Futu Holdings to your portfolios can decrease your overall portfolio volatility.