Deepwater Asset Management LLC Boosts Holdings in Nu Holdings Ltd. $NU

Key Points

• Deepwater Asset Management increased its Nu Holdings stake by 11.9% in the fourth quarter, making NU its largest position at about 4.9% of the portfolio.
• Several other institutional investors also boosted or initiated positions, and institutional ownership now stands at 84.02% of Nu Holdings’ stock.
• Nu’s leadership has been selling shares, while analysts remain mixed overall: the stock has a Moderate Buy consensus with an average price target of $17.08, despite some recent downgrades.

Deepwater Asset Management LLC raised its stake in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 11.9% during the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 997,890 shares of the company's stock after purchasing an additional 105,994 shares during the quarter. NU accounts for about 4.9% of Deepwater Asset Management LLC's investment portfolio, making the stock its biggest position. Deepwater Asset Management LLC's holdings in NU were worth $16,705,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently made changes to their positions in the company. LOM Asset Management Ltd bought a new position in shares of NU during the 4th quarter worth about $25,000. Cornerstone Planning Group LLC increased its holdings in shares of NU by 5,448.3% during the 4th quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock worth $27,000 after purchasing an additional 1,580 shares during the period. Morse Asset Management Inc bought a new position in shares of NU during the 4th quarter worth about $31,000. Fifth Third Bancorp increased its holdings in shares of NU by 433.0% during the 4th quarter. Fifth Third Bancorp now owns 1,988 shares of the company's stock worth $33,000 after purchasing an additional 1,615 shares during the period. Finally, VSM Wealth Advisory LLC increased its holdings in shares of NU by 1,000.0% during the 3rd quarter. VSM Wealth Advisory LLC now owns 3,300 shares of the company's stock worth $53,000 after purchasing an additional 3,000 shares during the period. Institutional investors own 84.02% of the company's stock.

Insider Buying and Selling

In other news, Director Anita M. Sands sold 21,000 shares of the company'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 transaction of $257,040.00. Following the transaction, the director directly owned 162,150 shares in the company, valued at approximately $1,984,716. This represents a 11.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the company'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 transaction, the chief executive officer owned 2,312,338 shares in the company, valued at $34,245,725.78. The trade was a 11.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. CICC Research assumed coverage on shares of NU in a report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price objective on the stock. Zacks Research downgraded shares of NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Scotiabank downgraded shares of NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a report on Wednesday. Weiss Ratings lowered shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Finally, Itau BBA Securities reiterated an "outperform" rating on shares of NU in a research report on Tuesday, March 17th. Ten research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $17.08.

NU Price Performance

NYSE:NU opened at $11.97 on Monday. The firm has a market cap of $58.10 billion, a PE ratio of 18.41, a price-to-earnings-growth ratio of 0.48 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 company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36. The company's 50-day moving average price is $13.79 and its two-hundred day moving average price is $15.53.

NU (NYSE:NU - Get Free Report) last announced its earnings results on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). NU had a return on equity of 30.91% and a net margin of 18.20%.The company had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. On average, equities analysts anticipate that Nu Holdings Ltd. will post 0.84 EPS for the current fiscal year.

NU declared that its Board of Directors has initiated a share buyback program on Thursday, June 4th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its shares are undervalued.

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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