Amova Asset Management Americas Inc. Cuts Position in Nu Holdings Ltd. $NU

Key Points

• Amova Asset Management Americas reduced its Nu Holdings stake by 12.1% in the fourth quarter, selling 611,303 shares and leaving it with 4,450,395 shares valued at about $74.5 million.
• Insider selling also showed up in recent filings: CEO Cristina Helena Zing Junqueira sold 300,000 shares, and Director Anita M. Sands sold 21,000 shares.
• Nu Holdings reported quarterly earnings of $0.19 per share, missing estimates by a penny, while revenue came in above expectations at $5.32 billion. The company also approved a share buyback plan, and analysts currently have a Moderate Buy consensus with an average price target of $17.08.

Amova Asset Management Americas Inc. cut its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 12.1% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 4,450,395 shares of the company's stock after selling 611,303 shares during the period. Amova Asset Management Americas Inc. owned about 0.09% of NU worth $74,544,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Baillie Gifford & Co. lifted its stake in NU by 2.3% in the fourth quarter. Baillie Gifford & Co. now owns 257,256,952 shares of the company's stock worth $4,306,481,000 after purchasing an additional 5,797,365 shares during the last quarter. State Street Corp lifted its stake in NU by 0.3% in the third quarter. State Street Corp now owns 91,478,395 shares of the company's stock worth $1,464,569,000 after purchasing an additional 239,660 shares during the last quarter. Norges Bank bought a new stake in NU in the fourth quarter worth $763,792,000. Jennison Associates LLC raised its stake in shares of NU by 82.6% during the fourth quarter. Jennison Associates LLC now owns 39,370,791 shares of the company's stock valued at $659,067,000 after acquiring an additional 17,809,644 shares during the last quarter. Finally, Legal & General Group Plc raised its stake in shares of NU by 5.0% during the third quarter. Legal & General Group Plc now owns 30,176,407 shares of the company's stock valued at $483,124,000 after acquiring an additional 1,430,827 shares during the last quarter. 84.02% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $14.81, for a total transaction of $4,443,000.00. Following the sale, the chief executive officer owned 2,312,338 shares in the company, valued at $34,245,725.78. This represents a 11.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Anita M. Sands sold 21,000 shares of the stock in a transaction that occurred 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 sale, the director owned 162,150 shares in the company, valued at approximately $1,984,716. The trade was a 11.47% decrease in their position. The SEC filing for this sale provides additional information.

NU Price Performance

Shares of NU opened at $11.87 on Wednesday. The stock has a market cap of $57.65 billion, a PE ratio of 18.26, a price-to-earnings-growth ratio of 0.46 and a beta of 0.95. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58. Nu Holdings Ltd. has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The firm's 50-day simple moving average is $13.71 and its two-hundred day simple moving average is $15.48.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings data on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). NU had a return on equity of 30.91% and a net margin of 18.20%.The business had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.06 billion. Analysts anticipate that Nu Holdings Ltd. will post 0.84 earnings per share for the current fiscal year.

NU announced that its board has approved a share buyback plan on Thursday, June 4th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have recently commented on NU. UBS Group lowered their price objective on shares of NU from $18.10 to $16.90 and set a "buy" rating for the company in a research note on Wednesday, May 20th. Bank of America reaffirmed an "underperform" rating on shares of NU in a research note on Tuesday, June 2nd. CICC Research initiated coverage on shares of NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price objective for the company. Susquehanna downgraded shares of NU from a "positive" rating to a "neutral" rating and decreased their price target for the stock from $18.00 to $13.00 in a research note on Wednesday, June 3rd. Finally, Scotiabank downgraded shares of NU to a "sector perform" rating and set a $13.00 price target for the company. in a research note on Wednesday, June 3rd. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $17.08.

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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