Wasatch Advisors LP Trims Stake in Nu Holdings Ltd. $NU

Key Points

• Wasatch Advisors LP trimmed its NU stake by 1.5% in the first quarter, selling 155,099 shares and ending with 10.05 million shares valued at about $144.4 million.
• NU’s latest quarterly results were mixed: EPS of $0.19 slightly missed estimates, but revenue of $5.32 billion topped expectations, while the company also reported strong profitability with an 18.2% net margin and 30.91% return on equity.
• Analysts remain generally constructive on Nu Holdings, with a consensus rating of “Moderate Buy” and an average price target of $17.07, even as some firms have cut ratings or issued underperform views.

Wasatch Advisors LP reduced its holdings in Nu Holdings Ltd. (NYSE:NU - Free Report) by 1.5% during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 10,051,556 shares of the company's stock after selling 155,099 shares during the quarter. Wasatch Advisors LP owned 0.21% of NU worth $144,441,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Maxi Investments CY Ltd raised its position in shares of NU by 85.5% during the 4th quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company's stock valued at $13,107,000 after buying an additional 361,000 shares in the last quarter. C WorldWide Group Holding A S lifted its holdings in shares of NU by 1,045.3% during the 4th quarter. C WorldWide Group Holding A S now owns 311,792 shares of the company's stock worth $5,219,000 after acquiring an additional 284,569 shares during the last quarter. Vanguard Group Inc. grew its position in NU by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 24,814,878 shares of the company's stock worth $415,401,000 after acquiring an additional 1,037,438 shares in the last quarter. Genoa Capital Gestora de Recursos Ltda. purchased a new position in NU in the fourth quarter worth $3,869,000. Finally, Blue Owl Capital Holdings LP bought a new position in NU in the third quarter valued at $2,784,000. Hedge funds and other institutional investors own 84.02% of the company's stock.

NU Stock Performance

NYSE NU opened at $13.20 on Friday. The company has a 50-day simple moving average of $13.18 and a two-hundred day simple moving average of $15.09. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36. Nu Holdings Ltd. has a 12-month low of $11.20 and a 12-month high of $18.98. The firm has a market cap of $64.10 billion, a price-to-earnings ratio of 20.31, a PEG ratio of 0.50 and a beta of 0.95.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings data 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). NU had a net margin of 18.20% and a return on equity of 30.91%. The company had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $5.06 billion. On average, equities analysts forecast that Nu Holdings Ltd. will post 0.83 EPS for the current year.

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

Insider Transactions at NU

In related news, Director Anita M. Sands sold 21,000 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the transaction, the director directly owned 162,150 shares in the company, valued at $1,984,716. This trade represents a 11.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.20% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on NU. CICC Research began coverage on NU in a research report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price target on the stock. Zacks Research cut NU from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Bank of America reiterated an "underperform" rating on shares of NU in a research report on Tuesday, June 2nd. Scotiabank cut NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a report on Wednesday, June 3rd. Finally, Itau BBA Securities restated an "outperform" rating on shares of NU in a research report on Tuesday, March 17th. Ten 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. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $17.07.

NU Profile

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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