a16z Perennial Management L.P. Boosts Position in Nu Holdings Ltd. $NU

Key Points

• a16z Perennial Management increased its Nu Holdings stake by 10.5% in the fourth quarter, buying 1.31 million more shares and bringing its total to 13.75 million shares worth about $230.1 million.
• Institutional interest remains strong, with 84.02% of NU shares owned by institutional investors and several other large funds also recently adding significant positions.
• Analysts are still mostly positive, with 11 Buy ratings and 3 Hold ratings on the stock, though some firms trimmed price targets or downgraded the shares; the consensus target price is $18.39.

a16z Perennial Management L.P. raised its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 10.5% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 13,748,400 shares of the company's stock after buying an additional 1,309,800 shares during the quarter. NU makes up about 17.3% of a16z Perennial Management L.P.'s investment portfolio, making the stock its 2nd largest holding. a16z Perennial Management L.P. owned about 0.29% of NU worth $230,148,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in NU. Norges Bank bought a new stake in NU in the fourth quarter valued at $763,792,000. Lone Pine Capital LLC bought a new stake in NU in the third quarter valued at $406,757,000. Jennison Associates LLC lifted its stake in NU by 82.6% in the fourth quarter. Jennison Associates LLC now owns 39,370,791 shares of the company's stock valued at $659,067,000 after buying an additional 17,809,644 shares during the last quarter. Marshall Wace LLP increased 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 purchasing an additional 14,449,834 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of NU by 276.8% during the third 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 period. 84.02% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on NU shares. UBS Group lowered their price target on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a report on Wednesday, May 20th. CICC Research started coverage on NU in a report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price target on the stock. Bank of America reissued a "neutral" rating on shares of NU in a report on Monday, March 9th. Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. Finally, Zacks Research lowered NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Eleven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $18.39.

Insider Transactions at NU

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of NU stock in a transaction dated Monday, March 23rd. The stock was 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the completion of the transaction, the director directly owned 162,150 shares in the company, valued at $1,984,716. This represents a 11.47% decrease in their position. The SEC filing for this sale provides additional information.

NU Price Performance

NYSE:NU opened at $13.15 on Monday. The business's 50-day moving average price is $14.00 and its 200 day moving average price is $15.66. The firm has a market cap of $63.83 billion, a P/E ratio of 20.22, a PEG ratio of 0.52 and a beta of 0.95. Nu Holdings Ltd. has a 52-week low of $11.71 and a 52-week high of $18.98. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36.

NU (NYSE:NU - Get Free Report) last released its earnings results on Friday, May 15th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). The firm had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.06 billion. NU had a return on equity of 30.91% and a net margin of 18.20%. As a group, sell-side analysts predict that Nu Holdings Ltd. will post 0.84 earnings per share for the current fiscal year.

NU 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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