Stock Traders Buy High Volume of NU Call Options (NYSE:NU)

Key Points

• Call-option trading surged: Traders bought 162,941 NU call options, about 65% above the average volume.
• Quarterly results were mixed: Revenue of $6.26 billion topped estimates, while EPS of $0.22 fell one cent short; earnings rose from $0.16 a year earlier.
• Shares rose 11% Friday to $13.13. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $18.25.

Nu Holdings Ltd. (NYSE:NU - Get Free Report) was the target of some unusual options trading on Friday. Stock traders acquired 162,941 call options on the stock. This represents an increase of approximately 65% compared to the average volume of 98,622 call options.

NU News Roundup

These are some of the NU news items that stood out recently:

• Positive Sentiment: Nu reported third-quarter revenue of $6.26 billion, above the roughly $5.96 billion analyst estimate cited in coverage. Earnings were $0.22 per share, up from $0.16 a year earlier; estimates differed on whether that result met expectations or missed by a penny. Nu Holdings Q3 financial results
• Positive Sentiment: Coverage said results helped ease concerns about Brazil and highlighted growth in Mexico and Colombia, supporting the case that Nu’s expansion beyond its core market can drive business growth. Nu Q3 results and regional growth
• Positive Sentiment: Needham reaffirmed its Buy rating and $19 price target, signaling continued analyst confidence in the shares. Needham rating information

Insider Buying and Selling at NU

In other news, CEO Cristina Junqueira sold 65,000 shares of NU stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $14.71, for a total value of $956,150.00. Following the sale, the chief executive officer directly owned 2,542,083 shares of the company's stock, valued at $37,394,040.93. The trade was a 2.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 115,000 shares of company stock valued at $1,706,400 in the last quarter. Company insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On NU

Hedge funds and other institutional investors have recently bought and sold shares of the company. Wealth Alliance LLC boosted its holdings in NU by 13.6% in the 3rd quarter. Wealth Alliance LLC now owns 41,054 shares of the company's stock valued at $520,000 after purchasing an additional 4,930 shares during the last quarter. Bleakley Financial Group LLC grew its stake in shares of NU by 30.8% in the 3rd quarter. Bleakley Financial Group LLC now owns 50,132 shares of the company's stock valued at $635,000 after buying an additional 11,805 shares during the period. Polymer Capital Management US LLC acquired a new stake in shares of NU during the 3rd quarter worth approximately $547,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its holdings in shares of NU by 27.0% during the 3rd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 1,831,800 shares of the company's stock worth $23,191,000 after buying an additional 389,300 shares during the last quarter. Finally, AlphaGrep UK Ltd increased its holdings in shares of NU by 278.6% during the 3rd quarter. AlphaGrep UK Ltd now owns 56,759 shares of the company's stock worth $719,000 after buying an additional 41,768 shares during the last quarter. 84.02% of the stock is currently owned by institutional investors and hedge funds.

NU Trading Up 11.0%

NYSE NU traded up $1.30 on Friday, reaching $13.13. 87,703,189 shares of the company were exchanged, compared to its average volume of 66,879,531. The business's fifty day moving average price is $13.81 and its 200 day moving average price is $14.25. The stock has a market capitalization of $63.78 billion, a P/E ratio of 17.74, a price-to-earnings-growth ratio of 0.51 and a beta of 0.97. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35. NU has a fifty-two week low of $11.20 and a fifty-two week high of $18.98.

NU (NYSE:NU - Get Free Report) last issued its earnings results on Thursday, November 12th. The company reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.01). NU had a net margin of 18.65% and a return on equity of 31.59%. The company had revenue of $6.26 billion during the quarter, compared to analysts' expectations of $5.96 billion. During the same quarter in the previous year, the company earned $0.16 earnings per share. Analysts forecast that NU will post 0.85 earnings per share for the current year.

Analyst Ratings Changes

Several research analysts recently commented on NU shares. Monness Crespi & Hardt started coverage on NU in a research note on Monday, October 26th. They issued a "buy" rating and a $20.00 price objective for the company. Susquehanna lifted their target price on shares of NU from $13.00 to $16.00 and gave the stock a "neutral" rating in a research note on Friday, August 14th. Needham & Company LLC reaffirmed a "buy" rating and set a $19.00 target price on shares of NU in a report on Friday. JPMorgan Chase & Co. upped their target price on shares of NU from $20.00 to $23.00 and gave the stock an "overweight" rating in a report on Tuesday, October 6th. Finally, Weiss Ratings upgraded shares of NU from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday. Ten research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, NU has an average rating of "Moderate Buy" and a consensus target price of $18.25.

NU Company Profile

Nu Holdings Ltd., which operates under the Nubank brand, is a digital financial services company founded in Brazil in 2013. It provides banking and related services through mobile apps and other digital channels, with a focus on simplifying access to financial products. Its offerings include digital accounts, payment cards, credit products, personal loans, and investment services. The company also provides services to small businesses, with products and availability varying by country. Nu serves customers in Brazil, Mexico, and Colombia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.