Royal Bank of Canada Trims Stock Position in Nu Holdings Ltd. $NU

Key Points

• Royal Bank of Canada cut its Nu Holdings stake by 29.2% in the first quarter, selling 460,186 shares and retaining 1.12 million shares valued at approximately $16.1 million. Institutional investors collectively own 84.02% of NU.
• Nu Holdings reported quarterly revenue of $5.32 billion, exceeding estimates, but earnings per share of $0.19 fell short of the $0.20 consensus. The stock opened at $14.10, down 2.6%, with a market capitalization of about $68.5 billion.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $17.24, despite mixed target revisions. NU’s board also authorized a stock repurchase program, although the filing listed a $0.00 authorization amount.

Royal Bank of Canada lessened its stake in Nu Holdings Ltd. (NYSE:NU - Free Report) by 29.2% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,117,404 shares of the company's stock after selling 460,186 shares during the quarter. Royal Bank of Canada's holdings in NU were worth $16,057,000 as of its most recent SEC filing.

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

NU Trading Down 2.6%

Shares of NYSE:NU opened at $14.10 on Friday. Nu Holdings Ltd. has a 1 year low of $11.20 and a 1 year high of $18.98. The firm has a market capitalization of $68.48 billion, a price-to-earnings ratio of 21.70, a price-to-earnings-growth ratio of 0.58 and a beta of 0.94. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. The business's 50 day moving average price is $13.30 and its 200-day moving average price is $14.50.

NU (NYSE:NU - Get Free Report) last released 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). The company had revenue of $5.32 billion during the quarter, compared to analyst estimates of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. On average, equities research analysts forecast that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.

NU announced that its board has initiated a stock buyback program 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 programs are often an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $12.24, for a total value of $257,040.00. Following the sale, the director owned 162,150 shares in the company, valued at $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.20% of the stock is currently owned by company insiders.

Analyst Ratings Changes

NU has been the subject of several analyst reports. Weiss Ratings cut shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 13th. CICC Research initiated coverage on shares of NU in a research report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price target on the stock. JPMorgan Chase & Co. lifted their price objective on shares of NU from $18.00 to $20.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. UBS Group decreased their price objective on shares of NU from $18.10 to $16.90 and set a "buy" rating for the company in a research report on Wednesday, May 20th. Finally, Needham & Company LLC started coverage on shares of NU in a research note on Friday, June 26th. They set a "buy" rating and a $17.00 target price on the stock. Ten equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $17.24.

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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