Norges Bank Purchases Shares of 45,626,792 Nu Holdings Ltd. $NU

Key Points

• Norges Bank took a large new stake in Nu Holdings, buying 45.6 million shares worth about $763.8 million in the fourth quarter, or roughly 0.95% of the company.
• Institutional ownership remains high, with funds like Vanguard and WCM also holding sizable positions; overall, 84.02% of NU shares are owned by institutions.
• Analyst sentiment is still broadly positive despite some recent downgrades: NU has a Moderate Buy consensus and an average price target of $18.39, while the stock recently traded around $13.15 after a 0.7% rise.

Norges Bank acquired a new position in Nu Holdings Ltd. (NYSE:NU - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 45,626,792 shares of the company's stock, valued at approximately $763,792,000. Norges Bank owned approximately 0.95% of NU at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Maxi Investments CY Ltd raised its holdings in NU by 85.5% in the 4th quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company's stock worth $13,107,000 after purchasing an additional 361,000 shares in the last quarter. C WorldWide Group Holding A S increased its stake in shares of NU by 1,045.3% in the 4th quarter. C WorldWide Group Holding A S now owns 311,792 shares of the company's stock worth $5,219,000 after acquiring an additional 284,569 shares in the last quarter. Mawer Investment Management Ltd. bought a new position in shares of NU in the 3rd quarter worth about $10,829,000. Vanguard Group Inc. increased its stake in shares of NU by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 24,814,878 shares of the company's stock worth $415,401,000 after acquiring an additional 1,037,438 shares in the last quarter. Finally, WCM Investment Management LLC increased its stake in shares of NU by 0.9% in the 3rd quarter. WCM Investment Management LLC now owns 74,478,698 shares of the company's stock worth $1,187,935,000 after acquiring an additional 659,526 shares in the last quarter. 84.02% of the stock is currently owned by institutional investors.

Insider Activity at NU

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the company's stock in a transaction that occurred on 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 approximately $34,245,725.78. This represents a 11.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Anita M. Sands sold 21,000 shares of the company's stock in a transaction that occurred on 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. Corporate insiders own 1.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on NU. CICC Research began coverage on shares of NU in a research note on Tuesday, April 14th. They issued an "outperform" rating and a $18.00 price target for the company. Zacks Research lowered shares of NU from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Weiss Ratings cut NU from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 13th. UBS Group lowered 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. Finally, Bank of America reissued a "neutral" rating on shares of NU in a research note on Monday, March 9th. Eleven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $18.39.

NU Stock Up 0.7%

Shares of NU stock opened at $13.15 on Friday. The stock has a market capitalization of $63.83 billion, a PE ratio of 20.22, a price-to-earnings-growth ratio of 0.52 and a beta of 1.01. Nu Holdings Ltd. has a 52-week low of $11.71 and a 52-week high of $18.98. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58. The company has a 50-day simple moving average of $14.00 and a two-hundred day simple moving average of $15.66.

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

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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