Capital Wealth Planning LLC Invests $2.94 Million in Nu Holdings Ltd. $NU

Key Points

• Capital Wealth Planning LLC disclosed a new position in Nu Holdings, buying 175,435 shares valued at about $2.94 million in the fourth quarter. Other institutional investors also adjusted holdings, and institutions now own 84.02% of NU.
• NU stock was down 2.1% and recently traded at $11.63, near its 52-week low of $11.20. The company also reported a modest earnings miss last quarter, posting $0.19 EPS versus the $0.20 estimate, though revenue came in above expectations at $5.32 billion.
• Nu Holdings’ board authorized a stock buyback plan, which can signal management believes the shares are undervalued. Meanwhile, analysts remain mixed: the consensus rating is Moderate Buy with an average price target of $17.08.

Capital Wealth Planning LLC purchased a new position in Nu Holdings Ltd. (NYSE:NU - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 175,435 shares of the company's stock, valued at approximately $2,937,000.

A number of other hedge funds have also modified their holdings of NU. Nixon Capital LLC boosted its holdings in NU by 1.2% in the fourth quarter. Nixon Capital LLC now owns 1,648,009 shares of the company's stock worth $27,588,000 after purchasing an additional 19,203 shares in the last quarter. Jessup Wealth Management Inc bought a new stake in NU in the fourth quarter worth $74,000. Myriad Asset Management Advisors LLC bought a new stake in NU in the fourth quarter worth $4,718,000. Zions Bancorporation National Association UT bought a new stake in NU in the fourth quarter worth $27,000. Finally, Janney Montgomery Scott LLC boosted its holdings in NU by 1.9% in the fourth quarter. Janney Montgomery Scott LLC now owns 132,160 shares of the company's stock worth $2,212,000 after purchasing an additional 2,436 shares in the last quarter. 84.02% of the stock is owned by institutional investors and hedge funds.

NU Stock Down 2.1%

NU stock opened at $11.63 on Thursday. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. Nu Holdings Ltd. has a 52-week low of $11.20 and a 52-week high of $18.98. The company has a 50-day moving average of $13.67 and a two-hundred day moving average of $15.45. The stock has a market capitalization of $56.45 billion, a price-to-earnings ratio of 17.88, a price-to-earnings-growth ratio of 0.47 and a beta of 0.95.

NU (NYSE:NU - Get Free Report) last released its quarterly earnings results on Friday, May 15th. The company reported $0.19 earnings per share (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 for the quarter, compared to the consensus estimate of $5.06 billion. As a group, equities research analysts anticipate that Nu Holdings Ltd. will post 0.84 EPS for the current year.

NU announced that its board has authorized a stock buyback plan on Thursday, June 4th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Insider Transactions at NU

In other NU news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the company's stock in a transaction dated 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 completion of the sale, the chief executive officer directly 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Anita M. Sands sold 21,000 shares of the 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 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 corporate insiders.

Analysts Set New Price Targets

NU has been the subject of a number of recent research reports. UBS Group decreased their price objective on shares of NU from $18.10 to $16.90 and set a "buy" rating for the company in a report on Wednesday, May 20th. Zacks Research cut shares of NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Weiss Ratings cut shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. Susquehanna cut shares of NU from a "positive" rating to a "neutral" rating and decreased their price objective for the stock from $18.00 to $13.00 in a report on Wednesday, June 3rd. Finally, Bank of America reiterated an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Ten investment 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price 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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