Marcho Partners LLP Sells 702,385 Shares of Nu Holdings Ltd. $NU

Key Points

• Marcho Partners LLP reduced its Nu Holdings stake by 38.9% in the fourth quarter, selling 702,385 shares and leaving it with 1,102,515 shares valued at about $18.46 million.
• Analyst sentiment is mixed but still leans positive: NU has a “Moderate Buy” consensus rating, with nine Buy ratings, four Hold ratings, and one Sell rating, alongside a consensus price target of $17.08.
• NU’s recent financial and trading data show pressure but solid profitability: shares were trading around $12.16, below the 52-week high of $18.98, while the latest quarterly results missed EPS estimates by $0.01 but beat revenue expectations with $5.32 billion in revenue.

Marcho Partners LLP cut its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 38.9% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,102,515 shares of the company's stock after selling 702,385 shares during the period. NU accounts for approximately 11.2% of Marcho Partners LLP's investment portfolio, making the stock its 5th largest holding. Marcho Partners LLP's holdings in NU were worth $18,456,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. LOM Asset Management Ltd acquired a new position in shares of NU during the fourth quarter valued at $25,000. Cornerstone Planning Group LLC increased its holdings in shares of NU by 5,448.3% during the fourth quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock valued at $27,000 after purchasing an additional 1,580 shares during the period. Zions Bancorporation National Association UT acquired a new position in shares of NU during the fourth quarter valued at $27,000. Morse Asset Management Inc acquired a new position in shares of NU during the fourth quarter valued at $31,000. Finally, Fifth Third Bancorp increased its holdings in shares of NU by 433.0% during the fourth quarter. Fifth Third Bancorp now owns 1,988 shares of the company's stock valued at $33,000 after purchasing an additional 1,615 shares during the period. 84.02% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have recently commented on NU. Zacks Research lowered NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Bank of America reissued an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. CICC Research started coverage on NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price for the company. Finally, Itau BBA Securities reaffirmed an "outperform" rating on shares of NU in a research note on Tuesday, March 17th. Nine equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, NU has an average rating of "Moderate Buy" and a consensus price target of $17.08.

NU Trading Up 0.6%

NYSE:NU opened at $12.16 on Friday. 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 Holdings Ltd. has a 1-year low of $11.20 and a 1-year high of $18.98. The firm has a market capitalization of $59.06 billion, a price-to-earnings ratio of 18.71, a price-to-earnings-growth ratio of 0.48 and a beta of 0.95. The stock has a fifty day simple moving average of $13.58 and a 200 day simple moving average of $15.40.

NU (NYSE:NU - Get Free Report) last released its quarterly earnings results on Friday, May 15th. The company reported $0.19 earnings per share 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 during the quarter, compared to analyst estimates of $5.06 billion. Sell-side analysts forecast that Nu Holdings Ltd. will post 0.84 earnings per share for the current year.

NU announced that its Board of Directors has initiated a stock repurchase program on Thursday, June 4th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related 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 completion of the transaction, the director owned 162,150 shares in the company, valued at $1,984,716. This trade represents a 11.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $14.81, for a total value of $4,443,000.00. Following the completion of the sale, the chief executive officer directly owned 2,312,338 shares of the company's stock, valued at approximately $34,245,725.78. This represents a 11.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.20% of the company's stock.

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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