SG Americas Securities LLC Increases Stock Position in Nu Holdings Ltd. $NU

Key Points

• SG Americas Securities LLC boosted its NU stake by 1,198.4% in the first quarter, ending with 7,964,591 shares valued at about $114.5 million.
• Analyst sentiment is mixed but still broadly positive: NU has a Moderate Buy consensus with an average price target of $17.08, though several firms recently downgraded the stock.
• NU reported quarterly earnings of $0.19 per share, slightly below estimates, while revenue of $5.32 billion topped expectations; the company also authorized a share repurchase plan.

SG Americas Securities LLC increased its holdings in shares of Nu Holdings Ltd. (NYSE:NU - Free Report) by 1,198.4% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 7,964,591 shares of the company's stock after purchasing an additional 7,351,167 shares during the period. SG Americas Securities LLC owned 0.17% of NU worth $114,451,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Norges Bank purchased a new stake in NU during the fourth quarter worth $763,792,000. Larch Capital Partners LLC purchased a new position in shares of NU in the 4th quarter valued at $605,829,000. Lone Pine Capital LLC bought a new position in shares of NU in the 3rd quarter worth $406,757,000. Jennison Associates LLC lifted its stake in shares of NU by 82.6% during the 4th quarter. Jennison Associates LLC now owns 39,370,791 shares of the company's stock worth $659,067,000 after purchasing an additional 17,809,644 shares during the last quarter. Finally, Atmos Capital Gestao DE Recursos LTDA. lifted its stake in shares of NU by 109.1% during the 4th quarter. Atmos Capital Gestao DE Recursos LTDA. now owns 29,813,810 shares of the company's stock worth $499,083,000 after purchasing an additional 15,552,726 shares during the last quarter. 84.02% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Weiss Ratings downgraded shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 13th. Zacks Research cut shares of NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. CICC Research initiated coverage on shares of NU in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price objective for the company. Susquehanna cut shares of NU from a "positive" rating to a "neutral" rating and decreased their target price for the company from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Finally, Scotiabank cut shares of NU to a "sector perform" rating and set a $13.00 target price for the company. in a research report on Wednesday, June 3rd. Nine investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $17.08.

NU Trading Up 0.2%

NU stock opened at $12.73 on Monday. 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 stock has a market cap of $61.83 billion, a PE ratio of 19.59, a price-to-earnings-growth ratio of 0.51 and a beta of 0.95. The stock has a 50-day moving average of $13.42 and a two-hundred day moving average of $15.24. Nu Holdings Ltd. has a one year low of $11.20 and a one year high of $18.98.

NU (NYSE:NU - Get Free Report) last issued its quarterly earnings results on Friday, May 15th. The company reported $0.19 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). The business 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%. On average, research analysts anticipate that Nu Holdings Ltd. will post 0.83 EPS for the current fiscal year.

NU announced that its Board of Directors has authorized a share repurchase plan on Thursday, June 4th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other NU news, Director Anita M. Sands sold 21,000 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction of $257,040.00. Following the sale, the director owned 162,150 shares of the company's stock, valued at approximately $1,984,716. The trade was a 11.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

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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