Futu cut to Neutral at Citi even after solid Q3 results; stock slides
KanawatTH/iStock via Getty ImagesFutu Holdings shares retreated 5.8% in Tuesday afternoon trading, even after the Hong Kong-based online brokerage delivered solid Q3 results and declared a special cash dividend. Nonetheless, with the stock up some 60% this year alone, outpacing the stock market by nearly 3x, Citi analyst Judy Zhang downgraded Futu shares to Neutral/High Risk. But the analyst lauded the company's Q3 results, showcasing record-high quarterly profit. Strong trading volume and continued net interest margin expansion during the three-month period drove solid gross profit growth, she highlighted in a note. In conjunction with its quarterly report, Futu said its board approved a special cash dividend of $2 per American Depository Share to holders of ADSs of record as of the close of business on Dec. 6, 2024, payable in U.S. dollars. This kind of payout "is a first in the company’s history vs. previously Futu has relied exclusively on share buybacks for shareholder return p
