Bank of New York Mellon Corp Sells 130,866 Shares of Nu Holdings Ltd. $NU

Key Points

• Bank of New York Mellon trimmed its Nu Holdings stake by 1.7% in the fourth quarter, selling 130,866 shares and ending with 7.66 million shares valued at about $128.3 million.
• Several other institutional investors also adjusted their positions, and 84.02% of NU shares are held by institutions, highlighting strong institutional ownership.
• Analyst sentiment is mixed: some firms cut ratings or price targets, but the stock still carries a Moderate Buy consensus with a $17.08 target price; meanwhile, NU also posted a quarterly earnings miss and announced a new share buyback program.

Bank of New York Mellon Corp cut its position in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 1.7% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 7,661,818 shares of the company's stock after selling 130,866 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.16% of NU worth $128,259,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of NU. Baillie Gifford & Co. boosted its holdings in NU by 2.3% during the 4th quarter. Baillie Gifford & Co. now owns 257,256,952 shares of the company's stock valued at $4,306,481,000 after acquiring an additional 5,797,365 shares during the period. State Street Corp boosted its holdings in NU by 0.3% during the 3rd quarter. State Street Corp now owns 91,478,395 shares of the company's stock valued at $1,464,569,000 after acquiring an additional 239,660 shares during the period. Norges Bank purchased a new stake in NU during the 4th quarter valued at about $763,792,000. Jennison Associates LLC boosted its holdings in NU by 82.6% during the 4th 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 period. Finally, Legal & General Group Plc boosted its holdings in NU by 5.0% during the 3rd 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 period. 84.02% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research firms have weighed in on NU. Weiss Ratings cut NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. UBS Group dropped their price objective on NU from $18.10 to $16.90 and set a "buy" rating for the company in a report on Wednesday, May 20th. Bank of America reiterated an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. CICC Research began coverage on NU in a report on Tuesday, April 14th. They issued an "outperform" rating and a $18.00 price objective for the company. Finally, Susquehanna cut NU from a "positive" rating to a "neutral" rating and dropped their price objective for the stock from $18.00 to $13.00 in a report on Wednesday. Ten equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, NU currently has a consensus rating of "Moderate Buy" and a consensus target price of $17.08.

Insider Buying and Selling

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the firm's stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $14.81, for a total transaction of $4,443,000.00. Following the completion of the transaction, the chief executive officer owned 2,312,338 shares of the company's stock, valued at $34,245,725.78. This trade represents a 11.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction on Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the completion of the sale, the director directly owned 162,150 shares of the company's stock, valued at approximately $1,984,716. The trade was a 11.47% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.20% of the stock is owned by company insiders.

NU Trading Down 1.3%

NU opened at $11.97 on Friday. The stock has a market cap of $58.10 billion, a PE ratio of 18.41, a PEG ratio of 0.48 and a beta of 0.95. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36. The business has a 50 day moving average of $13.79 and a 200-day moving average of $15.53. Nu Holdings Ltd. has a 52 week low of $11.20 and a 52 week high of $18.98.

NU (NYSE:NU - Get Free Report) last released its 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 firm had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.06 billion. Equities research analysts predict 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 program on Thursday, June 4th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

NU Company 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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