NU (NYSE:NU) Trading Up 6.4% – Should You Buy?

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

Analyst Ratings Changes

NU has been the subject of a number of recent research reports. Needham & Company LLC lifted their price target on shares of NU from $17.00 to $19.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. Scotiabank lowered shares of NU to a “sector perform” rating and set a $13.00 price objective on the stock. in a report on Wednesday, June 3rd. Bank of America reaffirmed an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. Susquehanna boosted their target price on shares of NU from $13.00 to $16.00 and gave the stock a “neutral” rating in a research note on Friday, August 14th. Finally, JPMorgan Chase & Co. increased their target price on NU from $18.00 to $20.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Nine equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, NU presently has an average rating of “Moderate Buy” and a consensus target price of $17.91.

NU Trading Up 5.8%

The firm has a market capitalization of $74.27 billion, a PE ratio of 20.70, a P/E/G ratio of 0.56 and a beta of 0.94. The business has a 50 day moving average price of $14.06 and a 200-day moving average price of $14.08. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35.

NU (NYSE:NU) last released its quarterly earnings data on Tuesday, June 30th. The company reported $0.22 EPS for the quarter. The firm had revenue of $5.88 billion for the quarter. NU had a net margin of 18.65% and a return on equity of 31.59%. Analysts expect that Nu Holdings Ltd. will post 0.86 earnings per share for the current year.

NU announced that its Board of Directors has initiated a stock buyback plan on Thursday, June 4th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity

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

Institutional Investors Weigh In On NU

Several institutional investors have recently bought and sold shares of NU. Norges Bank bought a new stake in NU in the 4th quarter valued at about $763,792,000. Larch Capital Partners LLC bought a new position in NU in the 4th quarter worth about $605,829,000. Squadra Investments Gestao DE Recursos LTDA. increased 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 purchasing an additional 16,229,515 shares during the period. Atmos Capital Gestao DE Recursos LTDA. increased 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 purchasing an additional 15,552,726 shares during the period. Finally, Marshall Wace LLP raised its holdings in shares of NU by 98.4% during the third quarter. Marshall Wace LLP now owns 29,141,505 shares of the company’s stock valued at $466,555,000 after buying an additional 14,449,834 shares during the last quarter. 84.02% of the stock is currently owned by hedge funds and other institutional investors.

NU Company Profile

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.