Empowered Funds LLC Raises Stake in Nu Holdings Ltd. $NU

Key Points

• Empowered Funds LLC increased its Nu Holdings stake by 28.1% in the first quarter, bringing its holdings to 414,075 shares valued at approximately $5.95 million. Institutional investors collectively own 84.02% of NU.
• Nu Holdings reported quarterly revenue of $5.32 billion, exceeding estimates, but earnings of $0.19 per share fell short of the $0.20 consensus forecast. The stock opened at $14.35, compared with analysts’ average price target of $17.24.
• Analyst sentiment remains broadly positive, with 10 Buy, four Hold and one Sell rating, although several firms recently lowered their targets. JPMorgan raised its target to $20, while Needham initiated coverage with a $17 Buy target.

Empowered Funds LLC grew its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 28.1% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 414,075 shares of the company's stock after acquiring an additional 90,861 shares during the quarter. Empowered Funds LLC's holdings in NU were worth $5,950,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Sowell Financial Services LLC grew its holdings in shares of NU by 4.8% in the fourth quarter. Sowell Financial Services LLC now owns 12,952 shares of the company's stock valued at $217,000 after purchasing an additional 599 shares during the period. Parallel Advisors LLC raised its stake in NU by 3.7% during the fourth quarter. Parallel Advisors LLC now owns 16,820 shares of the company's stock worth $282,000 after purchasing an additional 601 shares during the period. MBM Wealth Consultants LLC raised its stake in NU by 1.2% during the fourth quarter. MBM Wealth Consultants LLC now owns 50,284 shares of the company's stock worth $842,000 after purchasing an additional 607 shares during the period. Cornerstone Wealth Group LLC boosted its holdings in NU by 1.2% in the 4th quarter. Cornerstone Wealth Group LLC now owns 51,724 shares of the company's stock valued at $866,000 after purchasing an additional 621 shares during the last quarter. Finally, Aptus Capital Advisors LLC boosted its holdings in NU by 3.4% in the 4th quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company's stock valued at $318,000 after purchasing an additional 624 shares during the last quarter. Hedge funds and other institutional investors own 84.02% of the company's stock.

NU Price Performance

Shares of NU opened at $14.35 on Friday. Nu Holdings Ltd. has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The firm's 50 day moving average price is $13.19 and its 200 day moving average price is $14.58. The company has a market cap of $69.65 billion, a P/E ratio of 22.07, a PEG ratio of 0.57 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.

NU (NYSE:NU - Get Free Report) last issued its quarterly earnings results on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.01). The business had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. On average, research analysts forecast that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.

NU announced that its Board of Directors has authorized a stock buyback program on Thursday, June 4th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, Director Anita M. Sands sold 21,000 shares of the 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 sale, the director directly owned 162,150 shares in the company, valued at approximately $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.20% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on NU shares. Needham & Company LLC began coverage on shares of NU in a research note on Friday, June 26th. They issued a "buy" rating and a $17.00 price target for the company. Scotiabank lowered shares of NU to a "sector perform" rating and set a $13.00 price target on the stock. in a research report on Wednesday, June 3rd. Susquehanna cut NU from a "positive" rating to a "neutral" rating and decreased their price objective for the company from $18.00 to $13.00 in a report on Wednesday, June 3rd. JPMorgan Chase & Co. increased their price objective on NU from $18.00 to $20.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 7th. Finally, Weiss Ratings cut NU from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 13th. 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, NU 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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