First Trust Advisors LP Sells 2,125,247 Shares of Nu Holdings Ltd. $NU

Key Points

• First Trust Advisors LP cut its Nu Holdings stake by 62.3%, selling 2,125,247 shares and retaining 1,285,330 shares valued at approximately $18.47 million. Institutional investors collectively own 84.02% of NU.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $17.24, although Susquehanna downgraded the stock to “Neutral” and lowered its target to $13.
• NU shares opened at $14.02 after a reported 4.5% decline. The company beat revenue expectations in its latest quarter but slightly missed EPS estimates, reporting $5.32 billion in revenue and $0.19 EPS.

First Trust Advisors LP lowered its position in Nu Holdings Ltd. (NYSE:NU - Free Report) by 62.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,285,330 shares of the company's stock after selling 2,125,247 shares during the period. First Trust Advisors LP's holdings in NU were worth $18,470,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the company. Baillie Gifford & Co. grew its position in NU by 2.3% in the 4th quarter. Baillie Gifford & Co. now owns 257,256,952 shares of the company's stock worth $4,306,481,000 after purchasing an additional 5,797,365 shares in the last quarter. Morgan Stanley lifted its position in shares of NU by 2.9% during the 4th quarter. Morgan Stanley now owns 121,350,701 shares of the company's stock worth $2,031,411,000 after buying an additional 3,419,077 shares in the last quarter. State Street Corp lifted its position in shares of NU by 0.3% during the 3rd quarter. State Street Corp now owns 91,478,395 shares of the company's stock worth $1,464,569,000 after buying an additional 239,660 shares in the last quarter. Norges Bank purchased a new position in shares of NU in the 4th quarter worth approximately $763,792,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of NU by 11.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 42,602,086 shares of the company's stock worth $713,160,000 after buying an additional 4,215,824 shares during the last quarter. 84.02% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Needham & Company LLC assumed coverage on NU in a research report on Friday, June 26th. They set a "buy" rating and a $17.00 price target for the company. Susquehanna cut NU from a "positive" rating to a "neutral" rating and cut their price objective for the stock from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Bank of America restated an "underperform" rating on shares of NU in a research note on Tuesday, June 2nd. UBS Group decreased their target price on NU from $18.10 to $16.90 and set a "buy" rating for the company in a research report on Wednesday, May 20th. Finally, CICC Research assumed coverage on NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price on the stock. Ten equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $17.24.

Insider Activity

In other news, Director Anita M. Sands sold 21,000 shares of the company's stock in a transaction 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 transaction, the director owned 162,150 shares of the company's stock, valued at $1,984,716. This represents a 11.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.20% of the stock is currently owned by insiders.

NU Trading Down 4.5%

Shares of NU stock opened at $14.02 on Thursday. 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 firm has a market cap of $68.07 billion, a P/E ratio of 21.57, a PEG ratio of 0.59 and a beta of 0.95. The company has a 50 day moving average of $13.14 and a 200-day moving average of $14.60. Nu Holdings Ltd. has a 12-month low of $11.20 and a 12-month high of $18.98.

NU (NYSE:NU - Get Free Report) last posted its quarterly earnings data on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to analysts' expectations of $5.06 billion. Sell-side analysts anticipate that Nu Holdings Ltd. will post 0.83 earnings per share for the current year.

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