NU Sees Unusually Large Options Volume (NYSE:NU)

Key Points

• NU Holdings Ltd. experienced an unusual surge in options trading, with 208,043 call options bought on Friday, marking a 229% increase from its average daily volume.
• The stock rose by 10.7%, closing at $13.30, with over 84 million shares traded, significantly surpassing its average trading volume.
• Recent earnings reports showed NU beating estimates with $0.14 earnings per share but falling short on revenue expectations, garnering a Moderate Buy consensus rating from analysts.

Nu Holdings Ltd. (NYSE:NU - Get Free Report) saw some unusual options trading on Friday. Stock traders bought 208,043 call options on the stock. Thisisanincreaseof229% compared to the average daily volume of 63,178 call options.

NU Trading Up 10.7%

NU stock traded up $1.29 during trading hours on Friday, reaching $13.30. 84,633,704 shares of the company's stock were exchanged, compared to its average volume of 56,583,320. The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.20. The firm's 50 day simple moving average is $12.75 and its 200 day simple moving average is $12.16. NU has a twelve month low of $9.01 and a twelve month high of $16.15. The firm has a market capitalization of $64.06 billion, a PE ratio of 30.92, a PEG ratio of 0.70 and a beta of 1.05.

NU (NYSE:NU - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.02. NU had a net margin of 17.88% and a return on equity of 30.77%. The business had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.78 billion. During the same quarter last year, the firm earned $0.12 EPS. Research analysts predict that NU will post 0.58 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC boosted its position in NU by 2,069.9% during the first quarter. GAMMA Investing LLC now owns 72,192 shares of the company's stock valued at $7,050,000 after buying an additional 68,865 shares during the period. Allspring Global Investments Holdings LLC purchased a new stake in NU during the first quarter valued at about $113,000. Cetera Investment Advisers boosted its position in NU by 6.0% during the fourth quarter. Cetera Investment Advisers now owns 194,295 shares of the company's stock valued at $2,013,000 after buying an additional 10,955 shares during the period. SG Americas Securities LLC boosted its position in NU by 212.1% during the first quarter. SG Americas Securities LLC now owns 83,401 shares of the company's stock valued at $854,000 after buying an additional 56,682 shares during the period. Finally, Unison Asset Management LLC boosted its holdings in shares of NU by 3.1% during the first quarter. Unison Asset Management LLC now owns 1,261,650 shares of the company's stock worth $12,798,000 after purchasing an additional 37,888 shares during the period. 84.02% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have weighed in on NU shares. Barclays lifted their target price on NU from $15.00 to $16.00 and gave the stock an "overweight" rating in a report on Friday, April 25th. Susquehanna boosted their price target on NU from $14.00 to $15.00 and gave the stock a "positive" rating in a research report on Wednesday, May 14th. JPMorgan Chase & Co. boosted their price target on NU from $14.50 to $16.00 and gave the stock an "overweight" rating in a research report on Monday, June 30th. Finally, Morgan Stanley reissued an "overweight" rating on shares of NU in a research report on Friday, June 13th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $15.50.

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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