Nu Holdings Ltd. (NYSE:NU) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Fourteen brokerages give Nu Holdings an average “Moderate Buy” rating, with eight buys, five holds and one sell. The average 12-month price target is $17.92, above the reported $13.65 share price.
• Recent insider selling contrasts with institutional buying: Insiders sold 361,707 shares worth approximately $5.6 million over the past 90 days, while institutional investors own 84.02% of the company and several institutions increased their positions.
• Nu reported solid profitability and growth metrics: The company posted quarterly revenue of $5.88 billion and EPS of $0.22, with an 18.65% net margin and 31.59% return on equity. Analysts expect full-year EPS of $0.86.

Shares of Nu Holdings Ltd. (NYSE:NU - Get Free Report) have been assigned an average rating of "Moderate Buy" from the fourteen brokerages that are covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, five have given a hold recommendation and eight have given a buy recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $17.92.

NU has been the topic of several recent research reports. UBS Group raised their price objective on shares of NU from $16.90 to $18.20 and gave the company a "buy" rating in a research report on Thursday, August 20th. Weiss Ratings downgraded shares of NU from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, August 21st. Bank of America restated an "underperform" rating on shares of NU in a research note on Tuesday, June 2nd. Wolfe Research cut their price target on shares of NU from $18.00 to $17.00 and set an "outperform" rating on the stock in a report on Tuesday, August 25th. Finally, Scotiabank lowered shares of NU to a "sector perform" rating and set a $13.00 price objective for the company. in a research note on Wednesday, June 3rd.

Insider Activity

In other news, CEO Cristina Junqueira sold 65,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $14.71, for a total transaction of $956,150.00. Following the transaction, 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 position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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 value of $3,505,187.67. Following the completion of the transaction, the insider directly owned 979,446 shares in the company, valued at $15,485,041.26. The trade was a 18.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 361,707 shares of company stock worth $5,626,338. Corporate insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On NU

A number of large investors have recently added to or reduced their stakes in NU. Sequoia Financial Advisors LLC lifted its stake in shares of NU by 2.4% in the second quarter. Sequoia Financial Advisors LLC now owns 201,341 shares of the company's stock worth $2,690,000 after buying an additional 4,664 shares during the last quarter. IPG Investment Advisors LLC grew its stake in NU by 12.0% in the 2nd quarter. IPG Investment Advisors LLC now owns 83,026 shares of the company's stock valued at $1,109,000 after buying an additional 8,880 shares during the last quarter. National Pension Service grew its stake in NU by 40.6% in the 2nd quarter. National Pension Service now owns 1,225,677 shares of the company's stock valued at $16,375,000 after buying an additional 353,752 shares during the last quarter. C WorldWide Group Holding A S raised its holdings in NU by 1,188.4% in the 2nd quarter. C WorldWide Group Holding A S now owns 4,973,457 shares of the company's stock worth $66,445,000 after acquiring an additional 4,587,432 shares during the period. Finally, NewEdge Advisors LLC raised its holdings in NU by 15.2% in the 2nd quarter. NewEdge Advisors LLC now owns 41,035 shares of the company's stock worth $548,000 after acquiring an additional 5,410 shares during the period. Institutional investors own 84.02% of the company's stock.

NU Stock Performance

Shares of NU stock opened at $13.65 on Friday. NU has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The stock's 50-day moving average is $14.42 and its two-hundred day moving average is $13.93. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.55 and a quick ratio of 0.55. The firm has a market cap of $66.30 billion, a P/E ratio of 18.45, a PEG ratio of 0.56 and a beta of 0.94.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings results on Tuesday, June 30th. The company reported $0.22 earnings per share (EPS) for the quarter. NU had a return on equity of 31.59% and a net margin of 18.65%.The business had revenue of $5.88 billion during the quarter. Analysts predict that NU will post 0.86 earnings per share for the current fiscal year.

NU declared that its board has authorized a stock buyback plan on Thursday, June 4th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

About NU

Nu Holdings Ltd., operating under the Nubank brand, is a digital financial services company that provides banking, payments and credit products through mobile applications. Its offerings include digital bank accounts, credit cards, personal loans, payment services, investment products and insurance, serving consumers and small businesses.

Founded in Brazil in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nubank was established to simplify financial services and expand access to banking through technology.

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