NU (NYSE:NU) Shares Down 3.7% - Time to Sell?

Key Points

• Nu Holdings Ltd. (NYSE:NU) shares fell by 3.7% to $15.42, with significant trading volume declining to approximately 4.7 million shares, down 92% from the average daily volume.
• Analysts have mixed opinions on NU, with nine analysts rating it as a Buy and three as a Hold, while the average target price is currently set at $17.06.
• Despite reporting earnings surpassing estimates, NU's revenue for the quarter was below expectations, earning $3.70 billion compared to the predicted $3.78 billion.

Shares of Nu Holdings Ltd. (NYSE:NU - Get Free Report) were down 3.7% on Wednesday . The stock traded as low as $15.53 and last traded at $15.42. Approximately 4,687,007 shares traded hands during trading, a decline of 92% from the average daily volume of 55,609,938 shares. The stock had previously closed at $16.01.

Analyst Ratings Changes

Several research analysts recently weighed in on NU shares. Bank of America lifted their price target on NU from $14.00 to $16.00 and gave the company a "neutral" rating in a research report on Monday, August 25th. Citigroup upgraded NU from a "sell" rating to a "buy" rating and boosted their price objective for the company from $9.00 to $18.00 in a research report on Wednesday, August 20th. UBS Group boosted their price objective on NU from $14.30 to $15.60 and gave the company a "neutral" rating in a research report on Tuesday, September 2nd. Itau BBA Securities upgraded NU from a "market perform" rating to an "outperform" rating and set a $18.00 price objective for the company in a research report on Monday, August 18th. Finally, Susquehanna boosted their price target on NU from $15.00 to $17.00 and gave the stock a "positive" rating in a research report on Wednesday, August 27th. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, NU presently has an average rating of "Moderate Buy" and a consensus target price of $17.06.

NU Trading Down 4.5%

The firm has a market capitalization of $73.70 billion, a PE ratio of 33.23, a PEG ratio of 0.83 and a beta of 1.07. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 0.24. The business has a fifty day moving average price of $14.14 and a two-hundred day moving average price of $12.80.

NU (NYSE:NU - Get Free Report) last posted its earnings results on Thursday, August 14th. The company reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.02. NU had a return on equity of 29.91% and a net margin of 17.90%.The firm had revenue of $3.70 billion for the quarter, compared to analyst estimates of $3.78 billion. During the same quarter in the prior year, the company earned $0.12 EPS. Analysts expect that Nu Holdings Ltd. will post 0.58 EPS for the current fiscal year.

Institutional Investors Weigh In On NU

A number of hedge funds have recently bought and sold shares of NU. Armstrong Advisory Group Inc. acquired a new stake in NU in the 2nd quarter valued at about $27,000. NBC Securities Inc. raised its position in NU by 286,000.0% in the 1st quarter. NBC Securities Inc. now owns 2,861 shares of the company's stock valued at $29,000 after purchasing an additional 2,860 shares in the last quarter. Capital Analysts LLC acquired a new stake in NU in the 1st quarter valued at about $31,000. TFC Financial Management Inc. raised its position in NU by 74.1% in the 1st quarter. TFC Financial Management Inc. now owns 3,114 shares of the company's stock valued at $32,000 after purchasing an additional 1,325 shares in the last quarter. Finally, ORG Partners LLC raised its position in NU by 474.1% in the 2nd quarter. ORG Partners LLC now owns 2,325 shares of the company's stock valued at $32,000 after purchasing an additional 1,920 shares in the last quarter. Institutional investors and hedge funds own 84.02% of the company's stock.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.

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