Advent International L.P. Has $104.80 Million Holdings in Nu Holdings Ltd. $NU

Key Points

• Advent International reduced its Nu Holdings stake by 18.9% in the first quarter, selling 1.7 million shares. It still held 7.29 million shares worth approximately $104.8 million, representing 2.5% of its portfolio.
• Analyst sentiment remains broadly positive but has softened: NU has a “Moderate Buy” consensus rating and a $17.24 average price target, although several firms recently downgraded the stock or cut their targets.
• Nu reported quarterly revenue of $5.32 billion, ahead of estimates, but earnings of $0.19 per share narrowly missed expectations. Shares recently traded at $14.12, while the company’s board approved a share-repurchase plan with a stated authorization of $0.00.

Advent International L.P. lowered its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 18.9% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 7,292,793 shares of the company's stock after selling 1,704,666 shares during the quarter. NU comprises approximately 2.5% of Advent International L.P.'s holdings, making the stock its 6th largest holding. Advent International L.P. owned 0.15% of NU worth $104,797,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. LOM Asset Management Ltd bought a new position in shares of NU during the fourth quarter worth $25,000. Caitong International Asset Management Co. Ltd raised its stake in NU by 14,810.0% during the 4th 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 period. Cornerstone Planning Group LLC raised its stake in NU by 5,448.3% during the 4th quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock worth $27,000 after buying an additional 1,580 shares during the period. Zions Bancorporation National Association UT bought a new position in NU during the fourth quarter worth about $27,000. Finally, Morse Asset Management Inc bought a new position in NU during the fourth quarter worth about $31,000. 84.02% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently commented on NU. Scotiabank lowered NU to a "sector perform" rating and set a $13.00 price target on the stock. in a research report on Wednesday, June 3rd. Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Susquehanna cut NU from a "positive" rating to a "neutral" rating and lowered their target price for the stock from $18.00 to $13.00 in a research note on Wednesday, June 3rd. UBS Group lowered their target price on NU from $18.10 to $16.90 and set a "buy" rating for the company in a research note on Wednesday, May 20th. Finally, CICC Research began coverage on shares of NU in a report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price on the stock. Ten investment 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. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $17.24.

Insider Activity at NU

In other news, Director Anita M. Sands sold 21,000 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction 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 transaction was disclosed in a filing with the SEC, which is available at the SEC website.

NU Stock Performance

Shares of NU stock opened at $14.12 on Monday. The firm has a market cap of $68.54 billion, a price-to-earnings ratio of 21.72, a price-to-earnings-growth ratio of 0.56 and a beta of 0.95. The stock's 50-day moving average is $13.02 and its 200-day moving average is $14.67. Nu Holdings Ltd. has a one year low of $11.20 and a one year high of $18.98. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58.

NU (NYSE:NU - Get Free Report) last posted 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 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%. Equities analysts predict 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 share repurchase plan on Thursday, June 4th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

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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