Opal Capital LLC Takes $3.87 Million Position in Nu Holdings Ltd. $NU

Key Points

• Opal Capital acquired 269,271 shares of Nu Holdings during the first quarter, establishing a position valued at approximately $3.87 million. Institutional investors collectively own 84.02% of NU’s outstanding shares.
• Nu Holdings reported quarterly revenue of $5.32 billion, exceeding expectations, but earnings of $0.19 per share narrowly missed the $0.20 consensus estimate. The stock opened at $14.71, up 1.2%.
• Analyst sentiment remains moderately positive, with a consensus price target of $17.24; however, several firms recently downgraded the stock or reduced targets, while Needham initiated coverage with a $17 buy target.

Opal Capital LLC acquired a new position in Nu Holdings Ltd. (NYSE:NU - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 269,271 shares of the company's stock, valued at approximately $3,869,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. EverSource Wealth Advisors LLC lifted its stake in NU by 58.1% during the first quarter. EverSource Wealth Advisors LLC now owns 6,468 shares of the company's stock valued at $93,000 after purchasing an additional 2,377 shares during the last quarter. Empire Financial Management Company LLC grew its position in NU by 6.1% in the first quarter. Empire Financial Management Company LLC now owns 96,627 shares of the company's stock worth $1,389,000 after buying an additional 5,583 shares during the last quarter. California State Teachers Retirement System grew its position in NU by 13.3% in the first quarter. California State Teachers Retirement System now owns 1,807,993 shares of the company's stock worth $25,981,000 after buying an additional 212,530 shares during the last quarter. EdgePoint Investment Group Inc. increased its holdings in shares of NU by 44.2% in the first quarter. EdgePoint Investment Group Inc. now owns 24,524 shares of the company's stock valued at $352,000 after buying an additional 7,512 shares in the last quarter. Finally, Empowered Funds LLC increased its holdings in shares of NU by 28.1% in the first quarter. Empowered Funds LLC now owns 414,075 shares of the company's stock valued at $5,950,000 after buying an additional 90,861 shares in the last quarter. 84.02% of the stock is currently owned by institutional investors.

NU Stock Up 1.2%

Shares of NYSE:NU opened at $14.71 on Wednesday. The firm has a 50 day simple moving average of $13.11 and a 200 day simple moving average of $14.63. Nu Holdings Ltd. has a 52 week low of $11.20 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 market cap of $71.43 billion, a PE ratio of 22.63, a price-to-earnings-growth ratio of 0.58 and a beta of 0.95.

NU (NYSE:NU - Get Free Report) last posted its quarterly earnings data 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 for 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%. As a group, research analysts expect that Nu Holdings Ltd. will post 0.83 earnings per share for the current year.

NU declared that its board has authorized a stock buyback plan on Thursday, June 4th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at NU

In other 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 transaction, the director owned 162,150 shares in the company, valued at approximately $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on NU shares. UBS Group reduced 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. 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. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 target price for the company. in a report on Wednesday, June 3rd. Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. Finally, Needham & Company LLC began coverage on NU in a research note on Friday, June 26th. They issued a "buy" rating and a $17.00 price target on the stock. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $17.24.

NU 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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