Dimensional Fund Advisors LP Buys 271,385 Shares of Nu Holdings Ltd. $NU

Key Points

• Dimensional Fund Advisors increased its Nu Holdings stake by 990.3% in the first quarter, adding 271,385 shares to hold 298,789 shares valued at approximately $4.3 million.
• Institutional investors own 84.02% of NU, while director Anita M. Sands sold 21,000 shares at an average price of $12.24, reducing her holdings by 11.47%.
• Nu Holdings reported quarterly revenue of $5.32 billion, above estimates, but earnings per share of $0.19 missed consensus by $0.01. Analysts maintain a “Moderate Buy” consensus with an average price target of $17.24, versus a recent share price of $13.57.

Dimensional Fund Advisors LP lifted its stake in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 990.3% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 298,789 shares of the company's stock after acquiring an additional 271,385 shares during the period. Dimensional Fund Advisors LP's holdings in NU were worth $4,294,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of NU. Norges Bank acquired a new stake in shares of NU in the 4th quarter valued at about $763,792,000. Larch Capital Partners LLC acquired a new position in NU during the 4th quarter worth approximately $605,829,000. Jennison Associates LLC raised its stake in NU by 82.6% during the 4th quarter. Jennison Associates LLC now owns 39,370,791 shares of the company's stock worth $659,067,000 after buying an additional 17,809,644 shares during the period. Atmos Capital Gestao DE Recursos LTDA. raised its stake in NU by 109.1% during the 4th quarter. Atmos Capital Gestao DE Recursos LTDA. now owns 29,813,810 shares of the company's stock worth $499,083,000 after buying an additional 15,552,726 shares during the period. Finally, Marshall Wace LLP boosted its holdings in NU by 98.4% in the third quarter. Marshall Wace LLP now owns 29,141,505 shares of the company's stock worth $466,555,000 after acquiring an additional 14,449,834 shares in the last quarter. 84.02% of the stock is owned by institutional investors.

Insider Buying and Selling at NU

In related news, Director Anita M. Sands sold 21,000 shares of the firm'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 transaction, the director directly owned 162,150 shares of the company's stock, valued at $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.20% of the stock is owned by insiders.

NU Trading Down 0.6%

NU opened at $13.57 on Thursday. Nu Holdings Ltd. has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The firm has a market capitalization of $65.89 billion, a PE ratio of 20.88, a P/E/G ratio of 0.55 and a beta of 0.94. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. The company's 50-day moving average is $13.41 and its 200 day moving average is $14.40.

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 company had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.06 billion. As a group, research analysts predict 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 buyback program on Thursday, June 4th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on NU shares. Susquehanna cut NU from a "positive" rating to a "neutral" rating and reduced their price objective for the company from $18.00 to $13.00 in a research note on Wednesday, June 3rd. Needham & Company LLC began coverage on NU in a research report on Friday, June 26th. They set a "buy" rating and a $17.00 target price on the stock. Bank of America reiterated an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Scotiabank downgraded shares of NU to a "sector perform" rating and set a $13.00 price target for the company. in a research report on Wednesday, June 3rd. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of NU in a research note on Friday, August 7th. Ten 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, the stock presently has an average rating of "Moderate Buy" and an average target price of $17.24.

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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