Mawer Investment Management Ltd. Boosts Stake in Nu Holdings Ltd. $NU

Key Points

• Mawer Investment Management dramatically increased its NU stake by 578% in the fourth quarter, adding more than 3.9 million shares and bringing its holdings to 4.59 million shares worth about $76.8 million.
• NU reported mixed quarterly results, with earnings of $0.19 per share missing estimates by a penny, while revenue of $5.32 billion came in above expectations.
• Despite recent insider sales and a slight stock decline, analysts remain generally positive on NU, with a Moderate Buy consensus and an average price target of $18.39.

Mawer Investment Management Ltd. boosted its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 578.0% during the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 4,585,720 shares of the company's stock after buying an additional 3,909,320 shares during the quarter. Mawer Investment Management Ltd. owned approximately 0.10% of NU worth $76,765,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. LOM Asset Management Ltd purchased a new stake in NU in the 4th quarter valued at approximately $25,000. Cornerstone Planning Group LLC lifted its stake in NU by 5,448.3% in the 4th quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock valued at $27,000 after buying an additional 1,580 shares in the last quarter. Morse Asset Management Inc purchased a new stake in NU in the 4th quarter valued at approximately $31,000. Fifth Third Bancorp lifted its stake in NU by 433.0% in the 4th quarter. Fifth Third Bancorp now owns 1,988 shares of the company's stock valued at $33,000 after buying an additional 1,615 shares in the last quarter. Finally, VSM Wealth Advisory LLC lifted its stake in NU by 1,000.0% in the 3rd quarter. VSM Wealth Advisory LLC now owns 3,300 shares of the company's stock valued at $53,000 after buying an additional 3,000 shares in the last quarter. Hedge funds and other institutional investors own 84.02% of the company's stock.

NU Trading Down 1.3%

Shares of NU opened at $12.97 on Tuesday. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $62.95 billion, a P/E ratio of 19.95, a price-to-earnings-growth ratio of 0.52 and a beta of 0.95. The stock's fifty day simple moving average is $13.98 and its 200 day simple moving average is $15.64. Nu Holdings Ltd. has a twelve month low of $11.71 and a twelve month high of $18.98.

NU (NYSE:NU - Get Free Report) last issued its earnings results on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.01). The firm had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.06 billion. NU had a return on equity of 30.91% and a net margin of 18.20%. On average, equities research analysts forecast that Nu Holdings Ltd. will post 0.84 earnings per share for the current year.

Insider Activity

In other NU news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the firm's 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 transaction, the chief executive officer directly owned 2,312,338 shares of the company's stock, valued at $34,245,725.78. This trade represents a 11.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Anita M. Sands sold 21,000 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were 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 in the company, valued at $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

NU has been the topic of a number of recent analyst reports. Zacks Research lowered NU from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. CICC Research initiated coverage on NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price target on the stock. Bank of America reissued a "neutral" rating on shares of NU in a research note on Monday, March 9th. Itau BBA Securities reissued an "outperform" rating on shares of NU in a research note on Tuesday, March 17th. Finally, UBS Group reduced their price target on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Eleven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $18.39.

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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