NU (NYSE:NU) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• NU beat quarterly expectations: The company reported adjusted earnings of $0.22 per share, exceeding estimates by $0.02, while revenue reached $5.88 billion versus the $5.39 billion consensus.
• Shares traded at $13.92 after rising $0.36, giving NU a market capitalization of approximately $67.6 billion. The stock remains below its 52-week high of $18.98.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $17.24, although some firms recently lowered their targets or downgraded the stock.

NU (NYSE:NU - Get Free Report) posted its earnings results on Thursday. The company reported $0.22 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.02, FiscalAI reports. The company had revenue of $5.88 billion for the quarter, compared to analyst estimates of $5.39 billion. NU had a return on equity of 30.91% and a net margin of 18.20%.

NU Stock Performance

NYSE NU traded up $0.36 during trading hours on Thursday, reaching $13.92. 63,854,379 shares of the company were exchanged, compared to its average volume of 60,711,484. NU has a 1 year low of $11.20 and a 1 year high of $18.98. The business's 50 day simple moving average is $13.41 and its 200-day simple moving average is $14.40. The stock has a market capitalization of $67.60 billion, a P/E ratio of 21.42, a P/E/G ratio of 0.55 and a beta of 0.94. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.36.

Analysts Set New Price Targets

NU has been the subject of several recent research reports. JPMorgan Chase & Co. upped their price target on NU from $18.00 to $20.00 and gave the stock an "overweight" rating in a report on Tuesday, July 7th. UBS Group dropped their price objective on NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Bank of America reaffirmed an "underperform" rating on shares of NU in a report on Tuesday, June 2nd. Needham & Company LLC started coverage on shares of NU in a research note on Friday, June 26th. They issued a "buy" rating and a $17.00 target price for the company. Finally, Susquehanna lowered shares of NU from a "positive" rating to a "neutral" rating and dropped their price target for the company from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Ten investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.24.

NU announced that its board has initiated a share repurchase program 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. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Insider Activity at NU

In related news, Director Anita M. Sands sold 21,000 shares of NU stock in a transaction that occurred on Friday, May 15th. The shares were 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 of the company's stock, valued at approximately $1,984,716. The trade was a 11.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Compound Planning Inc. lifted its holdings in NU by 20.1% during the fourth quarter. Compound Planning Inc. now owns 67,241 shares of the company's stock valued at $1,126,000 after purchasing an additional 11,272 shares during the last quarter. TMB Capital Partners LLC purchased a new position in shares of NU in the fourth quarter worth about $188,000. Invesco Ltd. raised its position in shares of NU by 33.6% in the fourth quarter. Invesco Ltd. now owns 6,889,699 shares of the company's stock valued at $115,334,000 after purchasing an additional 1,733,530 shares during the period. Corient Private Wealth LLC lifted its stake in shares of NU by 1.6% during the 4th quarter. Corient Private Wealth LLC now owns 126,538 shares of the company's stock valued at $2,118,000 after buying an additional 2,050 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its stake in shares of NU by 33.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 240,006 shares of the company's stock valued at $4,085,000 after buying an additional 59,697 shares in the last quarter. Institutional investors own 84.02% of the company's stock.

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.

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