Nu Holdings Ltd. (NYSE:NU) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts rate Nu Holdings “Moderate Buy” overall: Of 15 covering firms, 10 recommend buying, four recommend holding and one recommends selling. The average 12-month price target is $17.24, above the reported $14.35 opening price.
• Recent analyst sentiment has weakened: Scotiabank and Susquehanna downgraded the stock to neutral or sector perform, each setting a $13 target, while Bank of America maintained an underperform rating.
• Quarterly results were mixed: NU reported $5.32 billion in revenue, exceeding expectations, but earnings per share of $0.19 fell short of the $0.20 consensus estimate. Institutional investors own 84.02% of the stock, while an insider recently sold 21,000 shares.

Shares of Nu Holdings Ltd. (NYSE:NU - Get Free Report) have been given an average recommendation of "Moderate Buy" by the fifteen research firms that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell rating, four have given a hold rating and ten have issued a buy rating on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $17.2417.

Several research firms recently weighed in on NU. Scotiabank cut 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. CICC Research started coverage on shares of 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 cut shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 13th. Susquehanna lowered shares of NU from a "positive" rating to a "neutral" rating and decreased their price target for the stock from $18.00 to $13.00 in a report on Wednesday, June 3rd. Finally, Bank of America restated an "underperform" rating on shares of NU in a research report on Tuesday, June 2nd.

Insider Buying and Selling

In other NU news, Director Anita M. Sands sold 21,000 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was 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. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NU

Several institutional investors have recently modified their holdings of NU. LOM Asset Management Ltd bought a new stake in NU in the 4th quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd grew its position in NU by 14,810.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company's stock valued at $25,000 after acquiring an additional 1,481 shares during the last quarter. Cornerstone Planning Group LLC raised its stake in shares of NU by 5,448.3% during the fourth quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company's stock worth $27,000 after acquiring an additional 1,580 shares in the last quarter. Zions Bancorporation National Association UT purchased a new position in shares of NU during the fourth quarter worth approximately $27,000. Finally, Morse Asset Management Inc purchased a new stake in shares of NU in the 4th quarter valued at $31,000. 84.02% of the stock is currently owned by institutional investors.

NU Price Performance

NU stock opened at $14.35 on Friday. The stock has a market cap of $69.65 billion, a price-to-earnings ratio of 22.07, a PEG ratio of 0.58 and a beta of 0.95. 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 business has a 50-day simple moving average of $13.19 and a 200 day simple moving average of $14.58. NU has a 52 week low of $11.20 and a 52 week high of $18.98.

NU (NYSE:NU - Get Free Report) last released 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). The business had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. On average, research analysts forecast that NU will post 0.83 earnings per share for the current fiscal year.

NU declared that its Board of Directors has initiated a stock repurchase program on Thursday, June 4th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

NU Company 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.

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.