Atom Investors LP Takes Position in Nu Holdings Ltd. $NU

Key Points

• Atom Investors LP initiated a new position in Nu Holdings, buying 257,023 shares valued at about $4.3 million in the fourth quarter.
• Nu Holdings reported mixed quarterly results, with earnings of $0.19 per share missing estimates by a penny, while revenue of $5.32 billion came in above expectations.
• The company also approved a stock buyback program, even as several analysts issued mixed views and insider sales were disclosed by both a director and the CEO.

Atom Investors LP bought a new stake in Nu Holdings Ltd. (NYSE:NU - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 257,023 shares of the company's stock, valued at approximately $4,303,000.

A number of other institutional investors also recently modified their holdings of NU. LOM Asset Management Ltd bought a new stake in shares of NU in the fourth quarter valued at about $25,000. Caitong International Asset Management Co. Ltd boosted its position in shares of NU by 14,810.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company's stock valued at $25,000 after acquiring an additional 1,481 shares during the period. Cornerstone Planning Group LLC boosted its position in shares of NU by 5,448.3% in the fourth quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock valued at $27,000 after acquiring an additional 1,580 shares during the period. Zions Bancorporation National Association UT bought a new stake in shares of NU in the fourth quarter valued at about $27,000. Finally, Morse Asset Management Inc bought a new stake in shares of NU in the fourth quarter valued at about $31,000. Institutional investors own 84.02% of the company's stock.

NU Stock Up 2.5%

Shares of NYSE NU opened at $12.74 on Wednesday. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. The company has a market cap of $61.85 billion, a price-to-earnings ratio of 19.60, a PEG ratio of 0.50 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 stock has a 50-day moving average price of $13.51 and a two-hundred day moving average price of $15.33.

NU (NYSE:NU - Get Free Report) last issued its 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). The business 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%. As a group, analysts forecast that Nu Holdings Ltd. will post 0.84 earnings per share 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 typically an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Itau BBA Securities reissued an "outperform" rating on shares of NU in a research report on Tuesday, March 17th. Weiss Ratings cut shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Bank of America reaffirmed an "underperform" rating on shares of NU in a research note on Tuesday, June 2nd. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 price target for the company. in a research note on Wednesday, June 3rd. Finally, Zacks Research downgraded NU from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Nine investment 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. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $17.08.

Insider Activity

In other NU news, Director Anita M. Sands sold 21,000 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the completion of the transaction, the director owned 162,150 shares of the company's stock, valued at approximately $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the business's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $14.81, for a total value of $4,443,000.00. Following the transaction, the chief executive officer directly owned 2,312,338 shares of the company's stock, valued at approximately $34,245,725.78. The trade was a 11.48% decrease in their position. The SEC filing for this sale provides additional information.

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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