NU Sees Unusually High Options Volume (NYSE:NU)

Key Points

• NU saw unusually heavy options activity on Wednesday, with traders buying 116,335 call options—about 61% above the stock’s typical daily call volume.
• Insiders have recently sold shares, including Director Anita M. Sands and CEO Cristina Helena Zing Junqueira, both of whom reduced their ownership positions through sizable transactions.
• The stock rose 2.5% and analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average price target of $17.08, even after some recent target cuts and rating downgrades.

Nu Holdings Ltd. (NYSE:NU - Get Free Report) saw unusually large options trading activity on Wednesday. Traders acquired 116,335 call options on the company. This is an increase of 61% compared to the typical daily volume of 72,111 call options.

Insider Transactions at NU

In related news, Director Anita M. Sands sold 21,000 shares of the stock in a transaction dated 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 directly owned 162,150 shares of the company's stock, valued at $1,984,716. This represents a 11.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 2,312,338 shares in the company, valued at $34,245,725.78. This trade represents a 11.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NU. Maxi Investments CY Ltd increased its stake in shares of NU by 85.5% during the fourth quarter. Maxi Investments CY Ltd now owns 783,000 shares of the company's stock worth $13,107,000 after purchasing an additional 361,000 shares in the last quarter. C WorldWide Group Holding A S increased its stake in shares of NU by 1,045.3% during the fourth quarter. C WorldWide Group Holding A S now owns 311,792 shares of the company's stock worth $5,219,000 after purchasing an additional 284,569 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of NU by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 24,814,878 shares of the company's stock worth $415,401,000 after purchasing an additional 1,037,438 shares in the last quarter. Genoa Capital Gestora de Recursos Ltda. purchased a new stake in shares of NU during the fourth quarter worth about $3,869,000. Finally, Blue Owl Capital Holdings LP purchased a new stake in shares of NU during the third quarter worth about $2,784,000. Institutional investors and hedge funds own 84.02% of the company's stock.

NU Trading Up 2.5%

NYSE:NU opened at $12.74 on Wednesday. NU has a 12 month low of $11.20 and a 12 month high of $18.98. The firm has a fifty day simple moving average of $13.51 and a 200-day simple moving average of $15.33. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $61.85 billion, a P/E ratio of 19.60, a PEG ratio of 0.50 and a beta of 0.95.

NU (NYSE:NU - Get Free Report) last posted its earnings results on Friday, May 15th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.20 by ($0.01). The business had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. On average, equities research analysts anticipate that NU will post 0.84 earnings per share for the current year.

NU declared that its board has initiated a share repurchase plan on Thursday, June 4th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Itau BBA Securities reaffirmed an "outperform" rating on shares of NU in a research report on Tuesday, March 17th. Weiss Ratings lowered shares of NU from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 13th. UBS Group reduced their target price on shares of NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. 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 on the stock. Finally, Scotiabank lowered shares of NU to a "sector perform" rating and set a $13.00 price objective on the stock. in a report on Wednesday, June 3rd. Nine analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $17.08.

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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