Nu Holdings Ltd. (NYSE:NU) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a moderately bullish view of Nu Holdings: Nine of 14 brokerages rate the stock a buy, four recommend holding it and one rates it a sell. The average 12-month price target is $17.91, above the reported $15.14 share price.
• Recent analyst actions were mixed: Needham raised its target to $19 and reiterated a buy, while Susquehanna, Scotiabank and Bank of America maintained more cautious or negative views.
• Nu reported quarterly EPS of $0.22 on $5.88 billion in revenue, with an 18.65% net margin and 31.59% return on equity. Insiders sold shares worth about $4.3 million, while institutional investors own 84.02% of the stock.

Shares of Nu Holdings Ltd. (NYSE:NU - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fourteen brokerages that are covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and nine have given a buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $17.9111.

A number of research analysts recently issued reports on NU shares. Needham & Company LLC boosted their target price on shares of NU from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Bank of America restated an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Susquehanna lifted their price target on shares of NU from $13.00 to $16.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Weiss Ratings lowered shares of NU from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday. Finally, Scotiabank cut shares of NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a research report on Wednesday, June 3rd.

Insider Buying and Selling

In other NU news, CEO Cristina Helena Zing Junqueira sold 50,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $15.80, for a total value of $790,000.00. Following the completion of the sale, the chief executive officer owned 4,927,593 shares of the company's stock, valued at approximately $77,855,969.40. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the business'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 value of $3,505,187.67. Following the sale, the insider owned 979,446 shares of the company's stock, valued at approximately $15,485,041.26. This represents a 18.46% decrease in their position. The SEC filing for this sale provides additional information.

Hedge Funds Weigh In On NU

A number of large investors have recently modified their holdings of NU. Caitong International Asset Management Co. Ltd raised its holdings in NU by 14,810.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company's stock worth $25,000 after buying an additional 1,481 shares during the last quarter. Cornerstone Planning Group LLC lifted its stake in shares of NU by 5,448.3% in the fourth quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock valued at $27,000 after buying an additional 1,580 shares in the last quarter. Zions Bancorporation National Association UT acquired a new position in shares of NU during the fourth quarter valued at about $27,000. Morse Asset Management Inc acquired a new position in shares of NU during the fourth quarter valued at about $31,000. Finally, Fifth Third Bancorp increased its position in shares of NU by 433.0% during the fourth quarter. Fifth Third Bancorp now owns 1,988 shares of the company's stock worth $33,000 after acquiring an additional 1,615 shares in the last quarter. 84.02% of the stock is currently owned by institutional investors.

NU Price Performance

Shares of NU opened at $15.14 on Wednesday. NU has a 52-week low of $11.20 and a 52-week high of $18.98. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.55 and a current ratio of 0.55. The business's 50 day moving average price is $13.87 and its two-hundred day moving average price is $14.18. The firm has a market cap of $73.51 billion, a PE ratio of 20.46, a price-to-earnings-growth ratio of 0.58 and a beta of 0.94.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $0.22 EPS for the quarter. The company had revenue of $5.88 billion during the quarter. NU had a net margin of 18.65% and a return on equity of 31.59%. On average, equities analysts anticipate that NU will post 0.86 EPS for the current year.

NU announced that its Board of Directors has approved a share repurchase plan on Thursday, June 4th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

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.

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