Strategy Capital LLC Makes New Investment in Nu Holdings Ltd. $NU

Strategy Capital LLC bought a new position in Nu Holdings Ltd. (NYSE:NU) in the fourth quarter, HoldingsChannel reports. The fund bought 4,164,509 shares of the company’s stock, valued at approximately $69,714,000. NU makes up about 5.1% of Strategy Capital LLC’s portfolio, making the stock its 8th largest position.

A number of other hedge funds have also bought and sold shares of NU. Norges Bank purchased a new position in NU in the 4th quarter worth about $763,792,000. Lone Pine Capital LLC purchased a new position in NU in the 3rd quarter worth about $406,757,000. Jennison Associates LLC raised its position in NU by 82.6% in the 4th quarter. Jennison Associates LLC now owns 39,370,791 shares of the company’s stock worth $659,067,000 after buying an additional 17,809,644 shares during the last quarter. Marshall Wace LLP raised its position in NU by 98.4% in the 3rd quarter. Marshall Wace LLP now owns 29,141,505 shares of the company’s stock worth $466,555,000 after buying an additional 14,449,834 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of NU by 276.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 18,416,144 shares of the company’s stock valued at $294,842,000 after purchasing an additional 13,529,278 shares during the last quarter. Hedge funds and other institutional investors own 84.02% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. UBS Group reduced their price target on shares of NU from $18.10 to $16.90 and set a “buy” rating for the company in a research report on Wednesday, May 20th. Scotiabank lowered shares of NU to a “sector perform” rating and set a $13.00 price target for the company. in a research report on Wednesday, June 3rd. CICC Research assumed coverage on shares of NU in a research report on Tuesday, April 14th. They set an “outperform” rating and a $18.00 price target for the company. Susquehanna lowered shares of NU from a “positive” rating to a “neutral” rating and reduced their price target for the company from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Finally, Zacks Research lowered shares of NU from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 24th. Nine investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, NU has an average rating of “Moderate Buy” and an average target price of $17.08.

NU Price Performance

NYSE NU opened at $12.16 on Friday. Nu Holdings Ltd. has a 52 week low of $11.20 and a 52 week high of $18.98. The firm has a market capitalization of $59.06 billion, a P/E ratio of 18.71, a PEG ratio of 0.48 and a beta of 0.95. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36. The company has a 50-day moving average price of $13.58 and a 200-day moving average price of $15.40.

NU (NYSE:NU) last released its quarterly earnings results on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.01). The business had revenue of $5.32 billion for the quarter, compared to analysts’ expectations of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. Equities research analysts anticipate that Nu Holdings Ltd. will post 0.84 earnings per share for the current year.

NU declared that its Board of Directors has initiated a share buyback plan on Thursday, June 4th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Anita M. Sands sold 21,000 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the completion of the transaction, the director directly owned 162,150 shares in the company, valued at approximately $1,984,716. The trade was a 11.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the business’s stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $14.81, for a total value of $4,443,000.00. Following the transaction, the chief executive officer owned 2,312,338 shares of the company’s stock, valued at approximately $34,245,725.78. This trade represents a 11.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.20% of the company’s stock.

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.