ABS Direct Equity Fund LLC Buys Shares of 247,700 Nu Holdings Ltd. $NU

Key Points

• ABS Direct Equity Fund LLC purchased 247,700 shares of Nu Holdings, valued at approximately $3.5 million, making NU its 11th-largest holding and 2.7% of its portfolio. Institutional investors collectively own 84.02% of the company.
• Nu Holdings reported quarterly revenue of $5.32 billion, exceeding expectations, but earnings of $0.19 per share fell short of the $0.20 consensus estimate. The stock opened at $14.12, with a market capitalization of roughly $68.5 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $17.24 price target; however, one director recently sold 21,000 shares at an average price of $12.24.

ABS Direct Equity Fund LLC purchased a new stake in Nu Holdings Ltd. (NYSE:NU - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 247,700 shares of the company's stock, valued at approximately $3,507,000. NU accounts for 2.7% of ABS Direct Equity Fund LLC's investment portfolio, making the stock its 11th biggest holding.

A number of other hedge funds also recently made changes to their positions in NU. Maxi Investments CY Ltd lifted its holdings in shares of NU by 85.5% in the fourth quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company's stock valued at $13,107,000 after buying an additional 361,000 shares during the period. C WorldWide Group Holding A S boosted its stake in NU by 1,045.3% during the fourth quarter. C WorldWide Group Holding A S now owns 311,792 shares of the company's stock valued at $5,219,000 after buying an additional 284,569 shares in the last quarter. Vanguard Group Inc. grew its holdings in NU by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 24,814,878 shares of the company's stock worth $415,401,000 after acquiring an additional 1,037,438 shares during the period. Genoa Capital Gestora de Recursos Ltda. acquired a new position in NU during the fourth quarter worth about $3,869,000. Finally, Danske Bank A S lifted its holdings in NU by 515.0% in the 4th quarter. Danske Bank A S now owns 5,074,732 shares of the company's stock valued at $84,951,000 after acquiring an additional 4,249,632 shares during the last quarter. Institutional investors own 84.02% of the company's stock.

Insider Activity at NU

In other news, Director Anita M. Sands sold 21,000 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction of $257,040.00. Following the transaction, the director owned 162,150 shares in the company, valued at $1,984,716. This represents a 11.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

NU Stock Up 0.2%

NU stock opened at $14.12 on Monday. The company has a 50 day moving average of $13.02 and a two-hundred day moving average of $14.67. The company has a market cap of $68.54 billion, a price-to-earnings ratio of 21.72, a PEG ratio of 0.56 and a beta of 0.95. Nu Holdings Ltd. has a 12-month low of $11.20 and a 12-month 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 posted 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). NU had a net margin of 18.20% and a return on equity of 30.91%. The company had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.06 billion. On average, equities analysts anticipate that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.

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

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on NU. JPMorgan Chase & Co. lifted their price objective on shares of NU from $18.00 to $20.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. CICC Research began coverage on shares of NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price for the company. Bank of America restated an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Needham & Company LLC initiated coverage on shares of NU in a research report on Friday, June 26th. They issued a "buy" rating and a $17.00 price target on the stock. Finally, Weiss Ratings cut NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, NU currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.24.

About NU

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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