SPX Gestao de Recursos Ltda Purchases New Position in Nu Holdings Ltd. $NU

Key Points

• SPX Gestao de Recursos Ltda opened a new position in Nu Holdings during the first quarter, buying 2.57 million shares valued at about $36.9 million. The stake represents roughly 3.1% of the fund’s portfolio and 0.05% of NU’s shares outstanding.
• Other large institutional investors also increased or added to NU positions, and institutions now own 84.02% of the company. Notable holders include Baillie Gifford, Morgan Stanley, State Street, Norges Bank, and Price T. Rowe Associates.
• NU reported quarterly earnings of $0.19 per share, slightly below estimates, while revenue came in above expectations at $5.32 billion. The stock also recently fell 1.3% and the board authorized a share buyback plan, while analysts currently rate it Moderate Buy with a $17.24 average price target.

SPX Gestao de Recursos Ltda bought a new position in Nu Holdings Ltd. (NYSE:NU - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 2,569,755 shares of the company's stock, valued at approximately $36,927,000. NU makes up about 3.1% of SPX Gestao de Recursos Ltda's portfolio, making the stock its 11th largest holding. SPX Gestao de Recursos Ltda owned 0.05% of NU as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Baillie Gifford & Co. increased its position in NU by 2.3% during the fourth quarter. Baillie Gifford & Co. now owns 257,256,952 shares of the company's stock worth $4,306,481,000 after buying an additional 5,797,365 shares during the last quarter. Morgan Stanley lifted its position in shares of NU by 2.9% in the fourth quarter. Morgan Stanley now owns 121,350,701 shares of the company's stock worth $2,031,411,000 after buying an additional 3,419,077 shares during the last quarter. State Street Corp lifted its position in shares of NU by 0.3% in the third quarter. State Street Corp now owns 91,478,395 shares of the company's stock worth $1,464,569,000 after buying an additional 239,660 shares during the last quarter. Norges Bank bought a new stake in shares of NU during the 4th quarter worth about $763,792,000. Finally, Price T Rowe Associates Inc. MD increased its holdings in shares of NU by 11.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 42,602,086 shares of the company's stock valued at $713,160,000 after acquiring an additional 4,215,824 shares during the last quarter. Institutional investors own 84.02% of the company's stock.

Insider Buying and Selling

In other NU news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction 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 in the company, valued at $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.20% of the stock is currently owned by company insiders.

NU Trading Down 1.3%

Shares of NU opened at $13.60 on Friday. 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 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $66.06 billion, a price-to-earnings ratio of 20.93, a P/E/G ratio of 0.54 and a beta of 0.95. The stock's 50-day moving average price is $12.89 and its 200 day moving average price is $14.78.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings data on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). NU had a return on equity of 30.91% and a net margin of 18.20%.The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.06 billion. As a group, research analysts predict that Nu Holdings Ltd. will post 0.83 earnings per share for the current year.

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

Analysts Set New Price Targets

A number of equities research analysts have issued reports on NU shares. CICC Research initiated coverage on NU in a research report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price for the company. Weiss Ratings lowered shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. UBS Group lowered their price target on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 target price for the company. in a research note on Wednesday, June 3rd. Finally, Zacks Research lowered NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, NU currently has a consensus 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.