SEB Asset Management AB Acquires Shares of 2,370,664 Nu Holdings Ltd. $NU

Key Points

• SEB Asset Management AB disclosed a new first-quarter stake in Nu Holdings, buying 2,370,664 shares valued at about $34.1 million.
• Nu’s stock received mixed analyst action, with JPMorgan raising its target to $20 and maintaining an overweight rating, while several others cut ratings or targets; the overall consensus remains Moderate Buy with an average target of $17.24.
• Nu recently reported Q1 earnings of $0.19 per share, slightly below estimates, but revenue of $5.32 billion topped expectations; the company also approved a share repurchase program.

SEB Asset Management AB acquired a new stake in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 2,370,664 shares of the company's stock, valued at approximately $34,066,000.

A number of other institutional investors have also made changes to their positions in the company. Sowell Financial Services LLC grew its holdings in NU by 4.8% during the 4th quarter. Sowell Financial Services LLC now owns 12,952 shares of the company's stock valued at $217,000 after purchasing an additional 599 shares in the last quarter. Parallel Advisors LLC lifted its holdings in NU by 3.7% in the 4th quarter. Parallel Advisors LLC now owns 16,820 shares of the company's stock worth $282,000 after buying an additional 601 shares in the last quarter. MBM Wealth Consultants LLC lifted 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 in the last quarter. Cornerstone Wealth Group LLC boosted its position in NU by 1.2% in the 4th quarter. Cornerstone Wealth Group LLC now owns 51,724 shares of the company's stock valued at $866,000 after buying an additional 621 shares during the last quarter. Finally, Aptus Capital Advisors LLC grew its stake in shares of NU by 3.4% during the fourth quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company's stock valued at $318,000 after acquiring an additional 624 shares in the last quarter. 84.02% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts have recently issued reports on NU shares. JPMorgan Chase & Co. lifted their target price on NU from $18.00 to $20.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 7th. UBS Group reduced their price target on NU from $18.10 to $16.90 and set a "buy" rating for the company in a report on Wednesday, May 20th. Weiss Ratings lowered NU from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 13th. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a report on Wednesday, June 3rd. Finally, Susquehanna lowered NU from a "positive" rating to a "neutral" rating and cut their target price for the company from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Ten research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $17.24.

NU Price Performance

Shares of NU stock opened at $13.60 on Monday. The firm has a market cap of $66.06 billion, a P/E ratio of 20.93, a P/E/G ratio of 0.54 and a beta of 0.95. 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 Holdings Ltd. has a 1-year low of $11.20 and a 1-year high of $18.98. The firm has a fifty day moving average of $12.89 and a two-hundred day moving average of $14.77.

NU (NYSE:NU - Get Free Report) last released its earnings results 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). 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 the consensus estimate of $5.06 billion. As a group, research analysts anticipate that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.

NU declared that its board has approved a share repurchase program on Thursday, June 4th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Anita M. Sands sold 21,000 shares of the business's stock in a transaction dated 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. The trade was a 11.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.20% of the stock is currently owned by corporate insiders.

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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