Pale Fire Capital SE Makes New $9.83 Million Investment in Nu Holdings Ltd. $NU

Key Points

• Pale Fire Capital SE acquired 735,954 Nu Holdings shares worth approximately $9.83 million during the second quarter, making NU 0.3% of its portfolio. Institutional investors collectively own 84.02% of the company.
• Analyst sentiment remains broadly positive, with nine Buy, four Hold and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $17.91.
• Nu Holdings reported quarterly earnings of $0.22 per share on $5.88 billion in revenue, while insiders sold 361,707 shares worth $5.63 million over the last quarter.

Pale Fire Capital SE bought a new position in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 735,954 shares of the company's stock, valued at approximately $9,832,000. NU makes up 0.3% of Pale Fire Capital SE's investment portfolio, making the stock its 19th largest position.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Caitong International Asset Management Co. Ltd boosted its holdings in 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 valued at $25,000 after acquiring an additional 1,481 shares during the last quarter. Zions Bancorporation National Association UT bought a new stake in NU during the 4th quarter worth about $27,000. Morse Asset Management Inc acquired a new position in NU during the 4th quarter valued at about $31,000. Fifth Third Bancorp lifted its position in NU by 433.0% during the 4th quarter. Fifth Third Bancorp now owns 1,988 shares of the company's stock valued at $33,000 after purchasing an additional 1,615 shares during the period. Finally, Hollencrest Capital Management bought a new position in shares of NU in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 84.02% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. boosted their price target on shares of NU from $18.00 to $20.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. Scotiabank cut shares of NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a research note on Wednesday, June 3rd. Needham & Company LLC upped their target price on shares of NU from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Weiss Ratings downgraded NU from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, August 21st. Finally, Wolfe Research cut their target price on NU from $18.00 to $17.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 25th. Nine investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $17.91.

Insider Activity

In other news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of NU stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $15.81, for a total transaction of $3,505,187.67. Following the transaction, the insider owned 979,446 shares in the company, valued at $15,485,041.26. The trade was a 18.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Cristina Helena Zing Junqueira sold 65,000 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total value of $956,150.00. Following the completion of the transaction, the chief executive officer owned 2,542,083 shares of the company's stock, valued at $37,394,040.93. This represents a 2.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 361,707 shares of company stock worth $5,626,338 in the last quarter. 1.20% of the stock is currently owned by company insiders.

NU Price Performance

NU opened at $15.37 on Thursday. The stock has a market cap of $74.63 billion, a P/E ratio of 20.77, a P/E/G ratio of 0.56 and a beta of 0.94. Nu Holdings Ltd. has a 12 month low of $11.20 and a 12 month high of $18.98. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.35. The company has a fifty day simple moving average of $14.12 and a 200 day simple moving average of $14.07.

NU (NYSE:NU - Get Free Report) last posted its earnings results on Tuesday, June 30th. The company reported $0.22 earnings per share for the quarter. NU had a return on equity of 31.59% and a net margin of 18.65%.The firm had revenue of $5.88 billion for the quarter. On average, research analysts expect that Nu Holdings Ltd. will post 0.86 EPS for the current year.

NU announced that its Board of Directors has approved a share repurchase plan on Thursday, June 4th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors 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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