Nu Holdings Ltd. $NU Shares Purchased by Hsbc Holdings PLC

Key Points

• HSBC Holdings PLC dramatically increased its stake in Nu Holdings, boosting its position by 444.1% in the first quarter to 7.78 million shares, worth about $111.6 million.
• NU’s recent earnings showed mixed results: EPS of $0.19 missed expectations by a cent, but revenue of $5.32 billion topped analyst estimates. The company also reported strong profitability with an 18.2% net margin and 30.91% return on equity.
• Analyst sentiment remains mostly positive despite some target cuts, with NU holding a Moderate Buy rating and an average price target of $17.24. The stock also recently fell 1.3% to $13.60 and the board approved a share buyback plan.

Hsbc Holdings PLC boosted its stake in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 444.1% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 7,782,758 shares of the company's stock after acquiring an additional 6,352,288 shares during the period. Hsbc Holdings PLC owned about 0.16% of NU worth $111,555,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Sowell Financial Services LLC raised 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 worth $217,000 after purchasing an additional 599 shares during the last quarter. Parallel Advisors LLC lifted its stake in NU by 3.7% in the 4th quarter. Parallel Advisors LLC now owns 16,820 shares of the company's stock valued at $282,000 after buying an additional 601 shares in the last quarter. MBM Wealth Consultants LLC boosted its holdings in NU by 1.2% in the 4th quarter. MBM Wealth Consultants LLC now owns 50,284 shares of the company's stock worth $842,000 after buying an additional 607 shares during the last quarter. Cornerstone Wealth Group LLC increased its stake in NU by 1.2% during the 4th quarter. Cornerstone Wealth Group LLC now owns 51,724 shares of the company's stock worth $866,000 after buying an additional 621 shares in the last quarter. Finally, Aptus Capital Advisors LLC increased its stake in NU by 3.4% during the 4th quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company's stock worth $318,000 after buying an additional 624 shares in the last quarter. 84.02% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at NU

In other NU 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 sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.20% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on NU shares. UBS Group decreased their target price on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Weiss Ratings cut NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Needham & Company LLC started coverage on NU in a research note on Friday, June 26th. They issued a "buy" rating and a $17.00 price objective for the company. Susquehanna lowered NU from a "positive" rating to a "neutral" rating and decreased their price objective for the company from $18.00 to $13.00 in a report on Wednesday, June 3rd. Finally, CICC Research initiated coverage on shares of NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price on the stock. Ten research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $17.24.

NU Trading Down 1.3%

NU opened at $13.60 on Friday. The firm has a market capitalization of $66.06 billion, a price-to-earnings ratio of 20.93, a price-to-earnings-growth ratio of 0.54 and a beta of 0.95. The company's 50 day simple moving average is $12.89 and its two-hundred day simple moving average is $14.78. Nu Holdings Ltd. has a 1-year low of $11.20 and a 1-year high of $18.98. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58.

NU (NYSE:NU - Get Free Report) last posted its quarterly earnings results on Friday, May 15th. The company reported $0.19 earnings per share (EPS) 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 analysts' expectations of $5.06 billion. Analysts expect that Nu Holdings Ltd. will post 0.83 EPS for the current fiscal year.

NU announced that its Board of Directors has initiated a share buyback 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 usually a sign that the company's management believes its stock is undervalued.

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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