NU (NYSE:NU) Shares Gap Up – Here’s Why

Nu Holdings Ltd. (NYSE:NU) shares gapped up prior to trading on Friday. The stock had previously closed at $11.83, but opened at $12.36. NU shares last traded at $12.6970, with a volume of 19,609,810 shares changing hands.

Top NU Stories

Here are a few of the latest stories about NU:

• Positive Sentiment: Third-quarter revenue was $6.26 billion, above the $5.96 billion consensus, while EPS rose to $0.22 from $0.16 a year earlier. Coverage also highlighted the company’s global expansion plans. Nu Holdings Q3 revenue beats as it embarks on global expansion
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $19 price target, implying substantial upside from the referenced $11.85 price. Needham & Company recommendations
• Negative Sentiment: EPS of $0.22 was a penny below the $0.23 consensus cited in the earnings report, a modest earnings-quality concern despite the revenue beat. Nu Holdings earnings report

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Weiss Ratings raised shares of NU from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday. Susquehanna boosted their price objective on shares of NU from $13.00 to $16.00 and gave the company a “neutral” rating in a research report on Friday, August 14th. Wolfe Research lowered their price objective on shares of NU from $18.00 to $17.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. Rothschild & Co Redburn set a $19.00 price objective on shares of NU in a research note on Monday, September 28th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $19.00 target price on shares of NU in a research report on Friday. Ten investment 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. According to MarketBeat.com, NU currently has a consensus rating of “Moderate Buy” and a consensus price target of $18.25.

NU Stock Performance

The firm has a 50-day simple moving average of $13.81 and a two-hundred day simple moving average of $14.25. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35. The company has a market capitalization of $62.86 billion, a price-to-earnings ratio of 17.47, a price-to-earnings-growth ratio of 0.51 and a beta of 0.97.

NU (NYSE:NU) last announced its quarterly 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). The firm had revenue of $6.26 billion for the quarter, compared to analyst estimates of $5.96 billion. NU had a net margin of 18.65% and a return on equity of 31.59%. During the same quarter in the prior year, the firm earned $0.16 earnings per share. As a group, sell-side analysts forecast that Nu Holdings Ltd. will post 0.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Cristina Junqueira sold 65,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total transaction of $956,150.00. Following the transaction, the chief executive officer owned 2,542,083 shares of the company’s stock, valued at approximately $37,394,040.93. This trade represents a 2.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 90 days. Corporate insiders own 1.20% of the company’s stock.

Institutional Trading of NU

Large investors have recently added to or reduced their stakes in the business. Wealth Alliance LLC raised its holdings in shares of NU by 13.6% during 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 in the last quarter. Bleakley Financial Group LLC lifted 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 purchasing an additional 11,805 shares during the last quarter. Polymer Capital Management US LLC acquired a new stake in shares of NU in the 3rd quarter valued at $547,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its stake in shares of NU by 27.0% in the 3rd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 1,831,800 shares of the company’s stock valued at $23,191,000 after purchasing an additional 389,300 shares during the last quarter. Finally, AlphaGrep UK Ltd boosted its holdings in NU by 278.6% in the third quarter. AlphaGrep UK Ltd now owns 56,759 shares of the company’s stock worth $719,000 after purchasing an additional 41,768 shares in the last quarter. 84.02% of the stock is owned by institutional investors.

About NU

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.