Futu Holdings Surges 12.9%: What's Behind the Rise?

Futu Holdings rose 12.9% to $169.40, driven by strong investor interest in the company's innovative financial services. TipRanks offers exclusive insights and data to help investors make informed decisions, including advanced analyst research and stock picks delivered weekly.

Futu Holdings Ltd (FUTU) has seen a significant increase in its stock price, rising by 12.9% to $169.40, driven by strong investor interest in the company's innovative financial services. This surge comes amidst a broader market trend where investors are showing increased confidence in fintech companies.

The stock's price gain of 12.9% was driven by several factors, including positive analyst reports and strong institutional investment. On July 18, 2025, the stock price increased by 7.00%, reaching $160.57 from $150.06 [1]. This upward trend was supported by a high trading volume of approximately $1.03 billion, with 6 million shares bought and sold [1].

Analysts have been bullish on Futu Holdings Ltd, with several firms upgrading their ratings and target prices. For instance, Barclays initiated coverage on Futu with an "overweight" rating and a $176.00 price objective [1]. Similarly, Bank of America raised its target price on Futu from $123.70 to $143.90, giving the company a "buy" rating [1].

Institutional investors have also shown strong interest in Futu Holdings Ltd. Bailard Inc., a major investor, reduced its position by 20.0% in the first quarter but still held 20,000 shares [2]. Additionally, several other hedge funds and institutional investors have increased their stakes in Futu, including China Universal Asset Management Co. Ltd. and Yong Rong HK Asset Management Ltd [2].

The company's financial performance has also been robust. In its latest quarterly earnings report, Futu Holdings Ltd reported earnings per share (EPS) of $1.96, beating analysts' consensus estimates of $1.95 [2]. The company's net margin was 41.74%, and its return on equity was 23.07%, indicating strong profitability and efficiency [2].

Despite the positive outlook, some analysts have cautioned about the stock's high risk due to its overbought condition on the Relative Strength Index (RSI14) at 84 [1]. This suggests that the stock may be overvalued and could experience a correction in the near future.

In conclusion, Futu Holdings Ltd's stock price surge can be attributed to a combination of strong analyst support, increased institutional investment, and robust financial performance. However, investors should be mindful of the stock's high risk due to its overbought condition and consider the potential for a correction.

References:
[1] https://stockinvest.us/stock/FUTU
[2] https://www.marketbeat.com/instant-alerts/filing-bailard-inc-has-205-million-stock-holdings-in-futu-holdings-limited-sponsored-adr-nasdaqfutu-2025-07-18/