NU (NYSE:NU) Shares Gap Up After Earnings Beat

Key Points

• Nu Holdings Ltd. experienced a significant stock price increase, opening at $13.40 after a closing price of $12.01, following a better-than-expected earnings report.
• The company reported an earnings per share (EPS) of $0.14, surpassing the consensus estimate of $0.12, with revenues reaching $3.70 billion.
• Numerous Wall Street analysts have revised their price targets for NU, with a consensus target of $15.50 and a rating of "Moderate Buy."

Shares of Nu Holdings Ltd. (NYSE:NU - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $12.01, but opened at $13.40. NU shares last traded at $13.50, with a volume of 38,603,984 shares changing hands.

The company reported $0.14 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.02. NU had a net margin of 17.90% and a return on equity of 29.91%. The business had revenue of $3.70 billion during the quarter, compared to the consensus estimate of $3.78 billion. During the same quarter last year, the firm earned $0.12 earnings per share.

Wall Street Analyst Weigh In

NU has been the subject of a number of analyst reports. Itau BBA Securities raised shares of NU from a "market perform" rating to an "outperform" rating and set a $18.00 target price for the company in a research note on Monday. Susquehanna lifted their target price on shares of NU from $14.00 to $15.00 and gave the stock a "positive" rating in a research note on Wednesday, May 14th. Barclays lifted their target price on shares of NU from $15.00 to $16.00 and gave the stock an "overweight" rating in a research note on Friday, April 25th. Morgan Stanley reissued an "overweight" rating on shares of NU in a research note on Friday, June 13th. Finally, JPMorgan Chase & Co. lifted their target price on shares of NU from $14.50 to $16.00 and gave the stock an "overweight" rating in a research note on Monday, June 30th. Seven investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, NU has a consensus rating of "Moderate Buy" and an average price target of $15.78.

Institutional Investors Weigh In On NU

A number of large investors have recently bought and sold shares of the stock. Focus Partners Advisor Solutions LLC grew its stake in shares of NU by 5.5% in the first quarter. Focus Partners Advisor Solutions LLC now owns 15,974 shares of the company's stock worth $164,000 after acquiring an additional 838 shares during the period. Rothschild Investment LLC grew its stake in shares of NU by 6.3% in the second quarter. Rothschild Investment LLC now owns 17,671 shares of the company's stock worth $242,000 after acquiring an additional 1,046 shares during the period. Frank Rimerman Advisors LLC grew its stake in shares of NU by 1.4% in the second quarter. Frank Rimerman Advisors LLC now owns 76,238 shares of the company's stock worth $1,046,000 after acquiring an additional 1,063 shares during the period. Perigon Wealth Management LLC boosted its holdings in shares of NU by 8.4% in the first quarter. Perigon Wealth Management LLC now owns 14,641 shares of the company's stock worth $150,000 after buying an additional 1,136 shares during the last quarter. Finally, Dakota Wealth Management boosted its holdings in shares of NU by 3.9% in the second quarter. Dakota Wealth Management now owns 31,314 shares of the company's stock worth $430,000 after buying an additional 1,180 shares during the last quarter. 84.02% of the stock is currently owned by institutional investors and hedge funds.

NU Stock Performance

The company has a quick ratio of 0.54, a current ratio of 0.57 and a debt-to-equity ratio of 0.24. The company has a market cap of $63.22 billion, a PE ratio of 28.52, a P/E/G ratio of 0.76 and a beta of 1.05. The business's fifty day moving average is $12.82 and its 200-day moving average is $12.16.

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.