Explore Capital Management LLC Sells 270,000 Shares of Nu Holdings Ltd. $NU

Key Points

• Explore Capital Management cut its Nu Holdings stake by 44.6% in the fourth quarter, selling 270,000 shares and leaving it with 335,950 shares worth about $5.62 million.
• Nu also saw notable insider selling, including a 21,000-share sale by Director Anita M. Sands and a 300,000-share sale by CEO Cristina Helena Zing Junqueira earlier this year.
• The company reported mixed recent results and sentiment: Q1 earnings of $0.19 per share missed estimates by a penny, while revenue topped expectations, and analysts currently rate the stock a Moderate Buy with a $17.08 consensus target.

Explore Capital Management LLC decreased its holdings in Nu Holdings Ltd. (NYSE:NU - Free Report) by 44.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 335,950 shares of the company's stock after selling 270,000 shares during the period. NU accounts for about 4.7% of Explore Capital Management LLC's portfolio, making the stock its 11th biggest holding. Explore Capital Management LLC's holdings in NU were worth $5,624,000 as of its most recent SEC filing.

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

Insider Buying and Selling

In other NU news, Director Anita M. Sands sold 21,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the sale, the director directly owned 162,150 shares in the company, valued at $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 SEC, which is available at 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 shares were sold at an average price of $14.81, for a total value of $4,443,000.00. Following the sale, the chief executive officer owned 2,312,338 shares in the company, valued at approximately $34,245,725.78. This trade represents a 11.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.20% of the company's stock.

NU Price Performance

Shares of NU stock opened at $12.15 on Friday. The stock has a 50 day moving average of $13.84 and a 200 day moving average of $15.55. Nu Holdings Ltd. has a 12 month low of $11.20 and a 12 month high of $18.98. The firm has a market cap of $58.97 billion, a PE ratio of 18.68, a PEG ratio of 0.46 and a beta of 0.95. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36.

NU (NYSE:NU - Get Free Report) last announced its quarterly 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 for the quarter, compared to the consensus estimate of $5.06 billion. On average, research analysts expect that Nu Holdings Ltd. will post 0.84 EPS for the current fiscal year.

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

Analyst Ratings Changes

A number of research firms have recently weighed in on NU. UBS Group dropped their price objective on NU from $18.10 to $16.90 and set a "buy" rating for the company in a research note on Wednesday, May 20th. Scotiabank lowered NU to a "sector perform" rating and set a $13.00 price target for the company. in a research note on Wednesday. Itau BBA Securities reissued an "outperform" rating on shares of NU in a research note on Tuesday, March 17th. Susquehanna lowered NU from a "positive" rating to a "neutral" rating and dropped their price target for the company from $18.00 to $13.00 in a research note on Wednesday. Finally, Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 13th. 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 MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.08.

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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