Nu Holdings Ltd. (NYSE:NU) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Nu Holdings has a consensus analyst rating of “Moderate Buy” from 15 analysts, with an average 12-month price target of about $17.08. The group includes 10 buy ratings, four hold ratings, and one sell rating.
• Several analysts recently turned more cautious on NU, including downgrades from Scotiabank, Zacks Research, and Susquehanna, while Bank of America kept an underperform view and UBS trimmed its price target.
• Insider and institutional activity has been active: CEO Cristina Helena Zing Junqueira and Director Anita M. Sands both sold shares, while institutional investors such as Bank of America Corp DE and Janus Henderson increased their holdings. The company also announced a share buyback authorization, though the article notes it permits repurchasing $0.00 in outstanding shares.

Nu Holdings Ltd. (NYSE:NU - Get Free Report) has earned a consensus rating of "Moderate Buy" from the fifteen analysts that are currently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, four have assigned a hold rating and ten have given a buy rating to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $17.0818.

NU has been the topic of a number of analyst reports. Scotiabank downgraded NU to a "sector perform" rating and set a $13.00 price target on the stock. in a research note on Wednesday, June 3rd. Zacks Research downgraded NU from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. Susquehanna downgraded NU from a "positive" rating to a "neutral" rating and decreased their target price for the stock from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Bank of America reiterated an "underperform" rating on shares of NU in a research report on Tuesday, June 2nd. Finally, UBS Group decreased their target price on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research report on Wednesday, May 20th.

Insiders Place Their Bets

In other NU news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the business's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $14.81, for a total transaction of $4,443,000.00. Following the sale, the chief executive officer directly owned 2,312,338 shares in the company, valued at approximately $34,245,725.78. The trade was a 11.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Anita M. Sands sold 21,000 shares of the business's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the sale, the director owned 162,150 shares in the company, valued at approximately $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NU

A number of institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE raised its holdings in shares of NU by 8.6% in the first quarter. Bank of America Corp DE now owns 45,966,932 shares of the company's stock worth $660,545,000 after acquiring an additional 3,656,945 shares during the last quarter. Edgestream Partners L.P. acquired a new position in shares of NU in the first quarter worth $4,532,000. Janus Henderson Group PLC raised its holdings in shares of NU by 35.4% in the first quarter. Janus Henderson Group PLC now owns 848,878 shares of the company's stock worth $12,200,000 after acquiring an additional 221,985 shares during the last quarter. Opal Capital LLC acquired a new position in shares of NU in the first quarter worth $3,869,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of NU by 58.1% in the first quarter. EverSource Wealth Advisors LLC now owns 6,468 shares of the company's stock worth $93,000 after acquiring an additional 2,377 shares during the last quarter. 84.02% of the stock is owned by institutional investors and hedge funds.

NU Price Performance

Shares of NYSE NU opened at $12.05 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. The stock has a fifty day moving average price of $13.62 and a 200 day moving average price of $15.42. NU has a 1-year low of $11.20 and a 1-year high of $18.98. The company has a market cap of $58.51 billion, a PE ratio of 18.54, a P/E/G ratio of 0.46 and a beta of 0.95.

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 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 for the quarter, compared to analyst estimates of $5.06 billion. Sell-side analysts forecast that NU will post 0.84 EPS for the current year.

NU announced that its board has approved a share buyback program on Thursday, June 4th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

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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