Absolute Gestao de Investimentos Ltda. Grows Stock Position in Nu Holdings Ltd. $NU

Key Points

• Absolute Gestao de Investimentos Ltda. increased its Nu Holdings stake by 802.1% in the first quarter, buying 855,014 more shares and bringing its total to 961,608 shares worth about $13.8 million.
• Nu Holdings reported mixed quarterly results: earnings of $0.19 per share slightly missed estimates, while revenue of $5.32 billion came in above expectations.
• Sentiment on NU is still generally positive, with analysts assigning a Moderate Buy consensus and a $17.24 average price target, even as some firms recently lowered ratings or targets.

Absolute Gestao de Investimentos Ltda. boosted its holdings in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 802.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 961,608 shares of the company's stock after acquiring an additional 855,014 shares during the quarter. NU comprises 1.6% of Absolute Gestao de Investimentos Ltda.'s holdings, making the stock its 18th largest holding. Absolute Gestao de Investimentos Ltda.'s holdings in NU were worth $13,818,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Maxi Investments CY Ltd grew its position in NU by 85.5% in the 4th quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company's stock valued at $13,107,000 after acquiring an additional 361,000 shares in the last quarter. C WorldWide Group Holding A S lifted its position in shares of 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 worth $5,219,000 after purchasing an additional 284,569 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of 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 purchasing an additional 1,037,438 shares in the last quarter. Genoa Capital Gestora de Recursos Ltda. purchased a new position in shares of NU in the fourth quarter valued at approximately $3,869,000. Finally, Danske Bank A S boosted its stake in shares of NU by 515.0% in the fourth quarter. Danske Bank A S now owns 5,074,732 shares of the company's stock valued at $84,951,000 after purchasing an additional 4,249,632 shares during the period. Hedge funds and other institutional investors own 84.02% of the company's stock.

NU Price Performance

NU stock opened at $14.12 on Friday. The business has a 50 day moving average price of $13.02 and a 200 day moving average price of $14.69. The stock 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 fifty-two week low of $11.20 and a fifty-two 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 issued its quarterly earnings data on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.01). The company had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.06 billion. NU had a return on equity of 30.91% and a net margin of 18.20%. Equities research 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 initiated a stock buyback program on Thursday, June 4th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of research analysts recently weighed in on NU shares. Weiss Ratings cut shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. Scotiabank lowered shares of NU to a "sector perform" rating and set a $13.00 target price on the stock. in a report on Wednesday, June 3rd. JPMorgan Chase & Co. raised their price target on shares of NU from $18.00 to $20.00 and gave the company an "overweight" rating in a research report on Tuesday, July 7th. Susquehanna downgraded shares of NU from a "positive" rating to a "neutral" rating and dropped their price target for the stock from $18.00 to $13.00 in a research note on Wednesday, June 3rd. Finally, Bank of America reaffirmed an "underperform" rating on shares of NU in a research report on Tuesday, June 2nd. Ten analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.24.

Insider Activity at NU

In other news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction on Friday, May 15th. The shares were sold at an average price of $12.24, for a total value of $257,040.00. Following the transaction, the director directly owned 162,150 shares of the company's stock, valued at $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 is available through this link. 1.20% of the stock is owned by insiders.

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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