NU (NYSE:NU) Stock Jumps 14.4% - Time to Buy?

Key Points

• NU shares jumped 14.4% to $15.37, with roughly 37.7 million shares traded during midday trading.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $18.02, implying additional upside.
• Nu Holdings reported $0.22 in quarterly EPS on $5.88 billion in revenue, while insiders sold $5.6 million worth of shares in the latest quarter.

Nu Holdings Ltd. (NYSE:NU - Get Free Report) shares shot up 14.4% on Monday. The company traded as high as $15.39 and last traded at $15.3680. Approximately 37,697,107 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 63,534,340 shares. The stock had previously closed at $13.43.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. JPMorgan Chase & Co. raised their price objective on shares of NU from $18.00 to $20.00 and gave the company an "overweight" rating in a research report on Tuesday, July 7th. Susquehanna upped their target price on shares of NU from $13.00 to $16.00 and gave the stock a "neutral" rating in a report on Friday, August 14th. UBS Group increased their price target on NU from $16.90 to $18.20 and gave the stock a "buy" rating in a research note on Thursday, August 20th. Itau BBA Securities cut NU from an "outperform" rating to a "market perform" rating and decreased their price target for the company from $20.00 to $18.00 in a report on Wednesday, September 16th. Finally, Needham & Company LLC restated a "buy" rating and issued a $19.00 price objective on shares of NU in a research report on Monday, September 28th. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $18.02.

NU Stock Performance

The firm's 50-day moving average price is $14.27 and its 200-day moving average price is $13.84. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.55 and a quick ratio of 0.55. The stock has a market cap of $73.68 billion, a P/E ratio of 20.52, a PEG ratio of 0.55 and a beta of 0.95.

NU (NYSE:NU - Get Free Report) last issued its earnings results on Tuesday, June 30th. The company reported $0.22 earnings per share for the quarter. The firm had revenue of $5.88 billion during the quarter. NU had a net margin of 18.65% and a return on equity of 31.59%. Sell-side analysts expect that Nu Holdings Ltd. will post 0.86 earnings per share for the current fiscal year.

Insider Buying and Selling at NU

In other NU news, CEO Cristina Junqueira sold 65,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total transaction of $956,150.00. Following the completion of the transaction, the chief executive officer owned 2,542,083 shares of the company's stock, valued at $37,394,040.93. This represents a 2.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the firm's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $15.81, for a total value of $3,505,187.67. Following the transaction, the insider owned 979,446 shares of the company's stock, valued at approximately $15,485,041.26. The trade was a 18.46% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 361,707 shares of company stock worth $5,626,338.

Hedge Funds Weigh In On NU

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NU. Bank of America Corp DE increased its stake in NU by 8.6% in the 1st quarter. Bank of America Corp DE now owns 45,966,932 shares of the company's stock worth $660,545,000 after acquiring an additional 3,656,945 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of NU by 53.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 28,310,084 shares of the company's stock worth $473,911,000 after acquiring an additional 9,893,940 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in shares of NU by 17.9% during the 1st quarter. Assenagon Asset Management S.A. now owns 32,535,091 shares of the company's stock valued at $467,529,000 after acquiring an additional 4,944,618 shares during the last quarter. Maverick Capital Ltd. boosted its position in shares of NU by 91.6% during the 1st quarter. Maverick Capital Ltd. now owns 22,444,311 shares of the company's stock valued at $322,525,000 after acquiring an additional 10,729,747 shares during the last quarter. Finally, Squadra Investments Gestao DE Recursos LTDA. grew its holdings in shares of NU by 266.8% in the first quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 22,312,501 shares of the company's stock valued at $320,631,000 after purchasing an additional 16,229,515 shares in the last quarter. 84.02% of the stock is owned by institutional investors.

About NU

Nu Holdings Ltd., operating under the Nubank brand, is a digital financial services company that provides banking and payment products primarily through mobile applications. The company offers digital accounts, credit cards, personal loans, payment services, investment products and insurance, serving consumers and small businesses.

Nubank was founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible with the goal of expanding access to simpler, lower-cost financial services through technology.

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