Nu Holdings Ltd. $NU Shares Bought by Avala Global LP

Key Points

• Avala Global LP increased its NU stake by 19.8% in the fourth quarter, buying 954,600 additional shares and bringing its total to 5,765,200 shares worth about $96.5 million.
• NU reported mixed quarterly results, with revenue of $5.32 billion beating estimates but earnings per share of $0.19 missing the $0.20 consensus. The company also approved a stock repurchase plan.
• Analyst sentiment remains cautious but positive overall, with a consensus rating of “Moderate Buy” and an average price target of $17.08, though several firms recently lowered their ratings or targets.

Avala Global LP grew its holdings in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 19.8% in the fourth quarter, according to its most recent filing with the SEC. The firm owned 5,765,200 shares of the company's stock after acquiring an additional 954,600 shares during the quarter. NU comprises approximately 4.6% of Avala Global LP's holdings, making the stock its 10th largest position. Avala Global LP owned approximately 0.12% of NU worth $96,509,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in the business. Sowell Financial Services LLC boosted its position in shares of NU by 4.8% during the 4th quarter. Sowell Financial Services LLC now owns 12,952 shares of the company's stock valued at $217,000 after purchasing an additional 599 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of NU by 3.7% during the 4th quarter. Parallel Advisors LLC now owns 16,820 shares of the company's stock valued at $282,000 after purchasing an additional 601 shares in the last quarter. MBM Wealth Consultants LLC boosted its position in shares of NU by 1.2% during the 4th quarter. MBM Wealth Consultants LLC now owns 50,284 shares of the company's stock valued at $842,000 after purchasing an additional 607 shares in the last quarter. Cornerstone Wealth Group LLC boosted its position in shares of NU by 1.2% during the 4th quarter. Cornerstone Wealth Group LLC now owns 51,724 shares of the company's stock valued at $866,000 after purchasing an additional 621 shares in the last quarter. Finally, Aptus Capital Advisors LLC boosted its position in shares of NU by 3.4% during the 4th quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company's stock valued at $318,000 after purchasing an additional 624 shares in the last quarter. Institutional investors and hedge funds own 84.02% of the company's stock.

NU Stock Up 1.2%

NYSE:NU opened at $12.87 on Thursday. The firm has a market capitalization of $62.48 billion, a price-to-earnings ratio of 19.80, a PEG ratio of 0.51 and a beta of 0.95. Nu Holdings Ltd. has a 1-year low of $11.20 and a 1-year high of $18.98. 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 business's fifty day moving average price is $13.49 and its 200 day moving average price is $15.30.

NU (NYSE:NU - Get Free Report) last posted its quarterly 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). NU had a net margin of 18.20% and a return on equity of 30.91%. The business had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.06 billion. On average, sell-side analysts forecast that Nu Holdings Ltd. will post 0.84 earnings per share for the current fiscal year.

NU declared that its board has approved a stock repurchase plan on Thursday, June 4th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

NU has been the topic of a number of recent analyst reports. Itau BBA Securities reaffirmed an "outperform" rating on shares of NU in a research report on Tuesday, March 17th. Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Scotiabank lowered NU to a "sector perform" rating and set a $13.00 target price on the stock. in a research report on Wednesday, June 3rd. Susquehanna lowered NU from a "positive" rating to a "neutral" rating and cut their target price for the stock from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Finally, CICC Research initiated coverage on NU in a research report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price on the stock. Nine 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 company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $17.08.

Insider Activity

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the business's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $14.81, for a total transaction of $4,443,000.00. Following the completion of the transaction, the chief executive officer owned 2,312,338 shares of the company's stock, valued at approximately $34,245,725.78. The trade was a 11.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Anita M. Sands sold 21,000 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the transaction, the director directly owned 162,150 shares of the company's stock, valued at $1,984,716. This represents a 11.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate 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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