Bank of New York Mellon Corp Acquires 349,255 Shares of Nu Holdings Ltd. $NU

Key Points

• Bank of New York Mellon increased its stake in Nu Holdings by 4.6% in the first quarter, buying 349,255 more shares and bringing its total position to 8,011,073 shares worth about $115.1 million.
• Nu had mixed signals from Wall Street and insiders: director Anita M. Sands sold 21,000 shares, while analysts currently rate the stock a Moderate Buy overall with a consensus price target of $17.24.
• The stock has been volatile but relatively strong, opening at $14.03 after a 3.2% rise, while the company recently posted revenue above expectations but missed EPS estimates by $0.01 in its latest quarterly report.

Bank of New York Mellon Corp lifted its stake in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 4.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 8,011,073 shares of the company's stock after purchasing an additional 349,255 shares during the period. Bank of New York Mellon Corp owned 0.16% of NU worth $115,119,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in NU. LOM Asset Management Ltd acquired a new stake in shares of NU in the fourth quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of 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 acquiring an additional 1,481 shares during the period. Cornerstone Planning Group LLC lifted its holdings in NU by 5,448.3% during the 4th quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock valued at $27,000 after purchasing an additional 1,580 shares during the last quarter. Zions Bancorporation National Association UT bought a new position in NU during the fourth quarter worth $27,000. Finally, Morse Asset Management Inc bought a new position in NU during the fourth quarter worth $31,000. 84.02% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at NU

In other news, Director Anita M. Sands sold 21,000 shares of the business's 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 sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Wall Street Analyst Weigh In

NU has been the subject of a number of research reports. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 target price for the company. in a report on Wednesday, June 3rd. Weiss Ratings lowered shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. UBS Group dropped 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. Susquehanna downgraded shares of NU from a "positive" rating to a "neutral" rating and cut their price objective for the company from $18.00 to $13.00 in a report on Wednesday, June 3rd. Finally, Needham & Company LLC assumed coverage on shares of NU in a research report on Friday, June 26th. They set a "buy" rating and a $17.00 target price on the stock. Ten equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, NU has a consensus rating of "Moderate Buy" and a consensus target price of $17.24.

NU Stock Up 3.2%

Shares of NU opened at $14.03 on Tuesday. 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 52 week low of $11.20 and a 52 week high of $18.98. The stock has a market capitalization of $68.13 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 0.54 and a beta of 0.95. The stock has a fifty day moving average of $12.90 and a 200-day moving average of $14.75.

NU (NYSE:NU - Get Free Report) last released 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). NU had a net margin of 18.20% and a return on equity of 30.91%. The company had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. As a group, sell-side analysts anticipate that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.

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

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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