Hsbc Holdings PLC Has $24.02 Million Holdings in Nu Holdings Ltd. $NU

Key Points

• HSBC Holdings PLC reduced its Nu Holdings stake by 9.2% in the fourth quarter, selling 144,083 shares and ending with 1,430,470 shares valued at about $24.0 million.
• Nu Holdings’ stock slipped 1.1% to $12.45, leaving it well below its 52-week high of $18.98; the company currently has a market cap of $60.44 billion.
• Analysts remain mixed but generally constructive on NU, with a consensus rating of “Moderate Buy” and an average price target of $17.08, even after some recent downgrades.

Hsbc Holdings PLC lessened its position in Nu Holdings Ltd. (NYSE:NU - Free Report) by 9.2% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,430,470 shares of the company's stock after selling 144,083 shares during the quarter. Hsbc Holdings PLC's holdings in NU were worth $24,024,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its position in shares of NU by 63.5% in the second quarter. EverSource Wealth Advisors LLC now owns 3,768 shares of the company's stock valued at $52,000 after purchasing an additional 1,464 shares during the last quarter. Jump Financial LLC lifted its position in shares of NU by 541.8% during the 2nd quarter. Jump Financial LLC now owns 185,434 shares of the company's stock worth $2,544,000 after purchasing an additional 156,539 shares during the last quarter. WINTON GROUP Ltd lifted its position in shares of NU by 38.5% during the 2nd quarter. WINTON GROUP Ltd now owns 37,156 shares of the company's stock worth $510,000 after purchasing an additional 10,332 shares during the last quarter. AXA S.A. boosted its stake in NU by 1.4% during the 2nd quarter. AXA S.A. now owns 192,311 shares of the company's stock valued at $2,639,000 after purchasing an additional 2,682 shares during the period. Finally, Nebula Research & Development LLC boosted its stake in NU by 63.7% during the 2nd quarter. Nebula Research & Development LLC now owns 19,937 shares of the company's stock valued at $274,000 after purchasing an additional 7,760 shares during the period. Institutional investors and hedge funds own 84.02% of the company's stock.

NU Trading Down 1.1%

Shares of NU opened at $12.45 on Thursday. 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 firm has a market capitalization of $60.44 billion, a price-to-earnings ratio of 19.15, a P/E/G ratio of 0.50 and a beta of 0.95. The stock's 50-day moving average price is $13.29 and its 200 day moving average price is $15.13.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings data 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 return on equity of 30.91% and a net margin of 18.20%.The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. As a group, research analysts predict that Nu Holdings Ltd. will post 0.83 earnings per share for the current year.

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

Insider Activity at NU

In related news, Director Anita M. Sands sold 21,000 shares of the firm's 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 completion of 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.20% of the company's stock.

Analyst Ratings Changes

Several research analysts have commented on the company. Weiss Ratings downgraded NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Zacks Research cut NU from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. CICC Research initiated coverage on shares of NU in a research note on Tuesday, April 14th. They issued an "outperform" rating and a $18.00 price objective on the stock. Susquehanna lowered shares of NU from a "positive" rating to a "neutral" rating and dropped their target price for the stock from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Finally, Itau BBA Securities reiterated an "outperform" rating on shares of NU in a research note on Tuesday, March 17th. Nine analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $17.08.

NU 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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