Assenagon Asset Management S.A. Sells 15,676,568 Shares of Nu Holdings Ltd. $NU

Key Points

• Assenagon Asset Management cut its Nu Holdings stake by 48.2% in the second quarter, selling 15.7 million shares and retaining 16.9 million shares worth approximately $225.2 million.
• Institutional investors and hedge funds own 84.02% of NU, with several major funds—including Jennison Associates, Squadra Investments and Atmos Capital—substantially increasing their positions.
• NU was trading at $14.10, while analysts maintained a “Moderate Buy” consensus and an average price target of $17.24. The company exceeded revenue expectations in its latest quarter but slightly missed EPS estimates.

Assenagon Asset Management S.A. lowered its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 48.2% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 16,858,523 shares of the company's stock after selling 15,676,568 shares during the period. Assenagon Asset Management S.A. owned approximately 0.35% of NU worth $225,230,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently bought and sold shares of the stock. Norges Bank bought a new position in NU during the fourth quarter worth about $763,792,000. Larch Capital Partners LLC bought a new stake in NU during the 4th quarter worth $605,829,000. Jennison Associates LLC grew its holdings 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 worth $659,067,000 after purchasing an additional 17,809,644 shares during the last quarter. Squadra Investments Gestao DE Recursos LTDA. increased its stake in shares of NU by 266.8% in the first quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 22,312,501 shares of the company's stock valued at $320,631,000 after buying an additional 16,229,515 shares during the period. Finally, Atmos Capital Gestao DE Recursos LTDA. raised its holdings in NU by 109.1% in the 4th quarter. Atmos Capital Gestao DE Recursos LTDA. now owns 29,813,810 shares of the company's stock valued at $499,083,000 after buying an additional 15,552,726 shares during the last quarter. 84.02% of the stock is currently owned by institutional investors and hedge funds.

NU Trading Down 2.6%

NYSE NU opened at $14.10 on Friday. The firm has a market capitalization of $68.48 billion, a P/E ratio of 21.70, a PEG ratio of 0.58 and a beta of 0.94. The business has a fifty day simple moving average of $13.30 and a 200 day simple moving average of $14.50. Nu Holdings Ltd. has a 12 month low of $11.20 and a 12 month high of $18.98. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36.

NU (NYSE:NU - Get Free Report) last issued its quarterly earnings results on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). The business had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. On average, analysts predict that Nu Holdings Ltd. will post 0.83 EPS for the current fiscal year.

NU declared that its Board of Directors has approved a stock buyback program on Thursday, June 4th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on NU shares. Bank of America restated an "underperform" rating on shares of NU in a research report on Tuesday, June 2nd. JPMorgan Chase & Co. increased their target price 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. UBS Group cut their price target on shares of NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 price target for the company. in a report on Wednesday, June 3rd. Finally, 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. 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 company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $17.24.

Insider Activity

In other news, Director Anita M. Sands sold 21,000 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 162,150 shares in the company, valued at approximately $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.20% of the company's stock.

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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