Nu Holdings Ltd. $NU Shares Sold by WCM Investment Management LLC

Key Points

• WCM Investment Management LLC trimmed its Nu Holdings stake by 1.5% in the first quarter, selling 1.1 million shares but still holding 72.8 million shares worth about $984 million.
• Nu reported quarterly earnings of $0.19 per share, slightly below expectations, while revenue of $5.32 billion beat analysts’ estimates.
• The company’s board authorized a share buyback program, and Wall Street sentiment remains constructive with a consensus rating of Moderate Buy and an average price target of $17.24.

WCM Investment Management LLC cut its stake in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 1.5% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 72,837,195 shares of the company's stock after selling 1,101,400 shares during the period. NU makes up about 2.2% of WCM Investment Management LLC's holdings, making the stock its 16th biggest position. WCM Investment Management LLC owned 1.50% of NU worth $984,031,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. LOM Asset Management Ltd acquired a new stake in NU during the 4th quarter worth about $25,000. Caitong International Asset Management Co. Ltd boosted its holdings in shares of NU by 14,810.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company's stock worth $25,000 after buying an additional 1,481 shares during the period. Cornerstone Planning Group LLC boosted its holdings in shares of NU by 5,448.3% in the fourth quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock worth $27,000 after buying an additional 1,580 shares during the period. Zions Bancorporation National Association UT purchased a new position in shares of NU in the fourth quarter worth approximately $27,000. Finally, Morse Asset Management Inc purchased a new position in shares of NU in the fourth quarter worth approximately $31,000. Institutional investors and hedge funds own 84.02% of the company's stock.

Insider Activity

In related news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction on Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the completion of the sale, the director owned 162,150 shares of the company's stock, valued at approximately $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.20% of the company's stock.

NU Stock Performance

Shares of NU opened at $13.60 on Monday. The company's 50 day moving average price is $12.89 and its 200 day moving average price is $14.77. Nu Holdings Ltd. has a 52 week low of $11.20 and a 52 week high of $18.98. The company has a market capitalization of $66.06 billion, a PE ratio of 20.93, a PEG ratio of 0.54 and a beta of 0.95. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58.

NU (NYSE:NU - Get Free Report) last released its 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 return on equity of 30.91% and a net margin of 18.20%.The company had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.06 billion. Research analysts expect that Nu Holdings Ltd. will post 0.83 EPS for the current fiscal year.

NU announced that its board has authorized a share buyback program on Thursday, June 4th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on NU. Needham & Company LLC initiated coverage on shares of NU in a research report on Friday, June 26th. They issued a "buy" rating and a $17.00 price target for the company. Zacks Research cut shares of NU from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. UBS Group cut their target price on shares of NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. CICC Research assumed coverage on NU in a research report on Tuesday, April 14th. They issued an "outperform" rating and a $18.00 target price for the company. Finally, Weiss Ratings downgraded NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. Ten research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $17.24.

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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