May 22, 2023 – Hong Kong based hedge fund Greenwoods Asset Management has recently disclosed that it cut its position in shares of Futu Holdings Limited by 37.6%, according to filings with the Securities and Exchange Commission (SEC). This comes as a surprise to many in the market who expected the fund to maintain its previous stake in the NASDAQ-listed online brokerage firm.
Greenwoods Asset Management is one of many hedge funds that have sold off some, if not all, of their holdings in Futu over the past quarter. According to the latest data from HoldingsChannel.com, several other hedge funds have also reduced their positions in Futu, which was once considered a darling amongst investors.
Futu’s stock had been trading at an all-time high of $72.20 just six months ago, but it has since plummeted by almost 50%. The sharp decline is largely due to increased competition and regulatory crackdowns by Chinese authorities on technology and financial companies.
Despite these challenges, Futu remains optimistic about its long-term prospects. In a recent statement, the company highlighted its innovative products and services as key drivers that will enable it to maintain its market leadership position in China’s rapidly expanding online brokerage industry.
Futu’s current market cap stands at $5.66 billion, with a P/E ratio of 14.81 and a P/E/G ratio of 6.43. Although it may seem undervalued given its potential for growth, investors remain cautious about putting too much money into Chinese firms amidst ongoing geopolitical tensions.
As for Greenwoods Asset Management Hong Kong Ltd., it will be interesting to see how they reshuffle their portfolio in light of this recent development. With Futu accounting for only 2.6% of their portfolio but still being one of their largest holdings, it raises questions about where they plan to allocate their capital next.
In conclusion, while Greenwoods Asset Management Hong Kong Ltd.’s decision to cut its position in Futu Holdings Limited is noteworthy, it may just be a blip in a larger trend of hedge funds reducing their exposure to Chinese technology firms. Whether or not Futu can weather the storm and bounce back remains to be seen. The market will undoubtedly be watching closely.
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Futu Holdings Sees Increase in Institutional Investor Interest Despite Negative Reports
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”FUTU” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]May 22, 2023 – Futu Holdings Ltd., an advanced technology company headquartered in Hong Kong, has recently had a number of institutional investors modify their holdings. IvyRock Asset Management HK Ltd bought a stake worth about $9,010,000 during the fourth quarter while BlackRock Inc. boosted its holdings by 9.3% during the first quarter. Ergoteles LLC also increased their ownership by 564.5%, while Prudential PLC and Los Angeles Capital Management LLC both purchased new stakes in shares of Futu.
As a result, 19.92% of the stock is now owned by institutional investors and hedge funds. However, despite this increase in interest from investors, several analysts have issued negative reports on FUTU shares. JPMorgan Chase & Co downgraded shares from “overweight” to “neutral” and cut their price objective from $65 to $46 while Morgan Stanley downgraded shares to “underweight” and cut their price objective from $44 to $34.
Three investment analysts have given a sell rating on the stock, two have given a hold rating and two have given a buy rating, leaving Futu with a consensus rating of “Hold.” The average target price for the company is estimated to be $47.59 according to Bloomberg.com.
Despite these mixed reviews, Futu continues to provide fully digitalized financial services through its proprietary digital platforms, Futubull and moomoo. These platforms allow investors to trade securities and invest in fund products easily and efficiently.
Founded by Leaf Hua Li in December 2007, Futu Holdings Ltd remains at the forefront of fintech innovation with its digitalized approach to investing services and commitment to providing top-notch technological solutions for its clients.
Overall, it remains unclear how these recent changes in ownership will affect Futu’s long-term success trajectory or if these negative reports will impact investor confidence significantly enough to cause an unfavorable market shift. Nonetheless, time will tell how the situation unfolds, and investors should continue to monitor FUTU closely for future developments in the company’s performance and market positioning.
