NU (NYSE:NU) Trading Up 6.4% – Here’s Why

Nu Holdings Ltd. (NYSE:NU) shares shot up 6.4% during mid-day trading on Wednesday . The stock traded as high as $15.37 and last traded at $15.3790. 20,798,666 shares traded hands during trading, a decline of 66% from the average daily volume of 61,841,102 shares. The stock had previously closed at $14.46.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Scotiabank downgraded NU to a “sector perform” rating and set a $13.00 target price for the company. in a research note on Wednesday, June 3rd. Bank of America reaffirmed an “underperform” rating on shares of NU in a research note on Tuesday, June 2nd. Weiss Ratings lowered shares of NU from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, August 21st. UBS Group increased their price target on shares of NU from $16.90 to $18.20 and gave the company a “buy” rating in a research note on Thursday, August 20th. Finally, Needham & Company LLC raised their price target on shares of NU from $17.00 to $19.00 and gave the stock a “buy” rating in a report on Friday, August 14th. Nine equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, NU has an average rating of “Moderate Buy” and a consensus target price of $17.91.

NU Trading Up 5.8%

The company has a market cap of $74.27 billion, a PE ratio of 20.70, a price-to-earnings-growth ratio of 0.56 and a beta of 0.94. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.35. The business has a 50-day simple moving average of $14.06 and a 200-day simple moving average of $14.08.

NU (NYSE:NU) last released its quarterly earnings results on Tuesday, June 30th. The company reported $0.22 EPS for the quarter. The business had revenue of $5.88 billion during the quarter. NU had a return on equity of 31.59% and a net margin of 18.65%. On average, analysts predict that Nu Holdings Ltd. will post 0.86 EPS for the current fiscal year.

NU declared that its board has initiated a stock buyback program on Thursday, June 4th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Transactions at NU

In other news, CEO Cristina Helena Zing Junqueira sold 65,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total transaction of $956,150.00. Following the sale, the chief executive officer owned 2,542,083 shares of the company’s stock, valued at approximately $37,394,040.93. This represents a 2.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $15.81, for a total transaction of $3,505,187.67. Following the completion of the transaction, the insider directly owned 979,446 shares of the company’s stock, valued at approximately $15,485,041.26. The trade was a 18.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 361,707 shares of company stock valued at $5,626,338 over the last 90 days.

Institutional Investors Weigh In On NU

Several large investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new position in NU in the 4th quarter valued at approximately $763,792,000. Larch Capital Partners LLC purchased a new stake in shares of NU during the fourth quarter worth $605,829,000. Squadra Investments Gestao DE Recursos LTDA. raised its stake in shares of NU by 266.8% in the first quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 22,312,501 shares of the company’s stock valued at $320,631,000 after acquiring an additional 16,229,515 shares in the last quarter. Atmos Capital Gestao DE Recursos LTDA. raised its stake in shares of NU by 109.1% in the fourth quarter. Atmos Capital Gestao DE Recursos LTDA. now owns 29,813,810 shares of the company’s stock valued at $499,083,000 after acquiring an additional 15,552,726 shares in the last quarter. Finally, Marshall Wace LLP boosted its holdings in NU by 98.4% in the third quarter. Marshall Wace LLP now owns 29,141,505 shares of the company’s stock valued at $466,555,000 after purchasing an additional 14,449,834 shares during the period. 84.02% of the stock is owned by hedge funds and other institutional investors.

About NU

Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.

Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.