Wellington Management Group LLP Purchases 1,175,269 Shares of Nu Holdings Ltd. $NU

Key Points

• Wellington Management increased its Nu Holdings position by 27.6% in the second quarter, purchasing 1.18 million shares and bringing its holdings to 5.43 million shares valued at approximately $72.6 million.
• NU shares were trading at $15.37, up 6.3%, while the company reported quarterly revenue of $5.88 billion, EPS of $0.22, an 18.65% net margin, and a 31.59% return on equity.
• Analysts maintain a “Moderate Buy” consensus with a $17.91 price target, although ratings are mixed. Insiders sold 361,707 shares worth about $5.6 million over the past 90 days.

Wellington Management Group LLP boosted its position in Nu Holdings Ltd. (NYSE:NU - Free Report) by 27.6% in the second quarter, according to its most recent filing with the SEC. The institutional investor owned 5,432,803 shares of the company's stock after purchasing an additional 1,175,269 shares during the period. Wellington Management Group LLP owned about 0.11% of NU worth $72,582,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of NU. Morgan Stanley grew its stake in NU by 2.9% during the fourth quarter. Morgan Stanley now owns 121,350,701 shares of the company's stock valued at $2,031,411,000 after acquiring an additional 3,419,077 shares in the last quarter. State Street Corp raised its stake in shares of NU by 0.3% during the third quarter. State Street Corp now owns 91,478,395 shares of the company's stock worth $1,464,569,000 after acquiring an additional 239,660 shares in the last quarter. Bank of America Corp DE raised its position in NU by 8.6% in the 1st quarter. Bank of America Corp DE now owns 45,966,932 shares of the company's stock worth $660,545,000 after purchasing an additional 3,656,945 shares during the period. Norges Bank bought a new stake in shares of NU in the 4th quarter valued at about $763,792,000. Finally, Price T Rowe Associates Inc. MD lifted its position in NU by 11.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 42,602,086 shares of the company's stock valued at $713,160,000 after purchasing an additional 4,215,824 shares during the last quarter. Hedge funds and other institutional investors own 84.02% of the company's stock.

NU Trading Up 6.3%

Shares of NYSE:NU opened at $15.37 on Thursday. The stock has a 50 day moving average of $14.12 and a 200 day moving average of $14.07. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35. The company has a market cap of $74.63 billion, a PE ratio of 20.77, a price-to-earnings-growth ratio of 0.56 and a beta of 0.94. Nu Holdings Ltd. has a 12-month low of $11.20 and a 12-month high of $18.98.

NU (NYSE:NU - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The company reported $0.22 earnings per share (EPS) for the quarter. The firm had revenue of $5.88 billion for the quarter. NU had a net margin of 18.65% and a return on equity of 31.59%. As a group, equities research analysts expect that Nu Holdings Ltd. will post 0.86 EPS for the current year.

NU announced that its board has authorized a share buyback program on Thursday, June 4th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on NU. Weiss Ratings downgraded shares of NU from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, August 21st. Bank of America restated an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Needham & Company LLC raised their price objective on NU from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Scotiabank downgraded shares of NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a research report on Wednesday, June 3rd. Finally, Susquehanna increased their target price on NU from $13.00 to $16.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Nine analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $17.91.

Insider Buying and Selling

In other news, CEO Cristina Helena Zing Junqueira sold 65,000 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total transaction of $956,150.00. Following the sale, the chief executive officer directly owned 2,542,083 shares in the company, valued at approximately $37,394,040.93. This represents a 2.49% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the company's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $15.81, for a total value of $3,505,187.67. Following the sale, the insider owned 979,446 shares in the company, valued at approximately $15,485,041.26. This trade represents a 18.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 361,707 shares of company stock worth $5,626,338. Corporate insiders own 1.20% of the company's stock.

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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