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

Nu Holdings Ltd. (NYSE:NU) gapped down before the market opened on Monday. The stock had previously closed at $15.16, but opened at $11.69. NU shares last traded at $12.1150, with a volume of 92,195,662 shares.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. JPMorgan Chase & Co. increased 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. Weiss Ratings lowered shares of NU from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, August 21st. Monness Crespi & Hardt assumed coverage on shares of NU in a research report on Monday. They set a “buy” rating and a $20.00 price objective for the company. Wolfe Research lowered their price objective on shares of NU from $18.00 to $17.00 and set an “outperform” rating for the company in a research report on Tuesday, August 25th. Finally, UBS Group increased their price objective on shares of NU from $18.20 to $20.50 and gave the company a “buy” rating in a research note on Tuesday, October 20th. Ten equities 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.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $18.25.

NU Price Performance

The firm has a market cap of $59.55 billion, a P/E ratio of 16.58, a price-to-earnings-growth ratio of 0.62 and a beta of 0.95. 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 business has a 50-day moving average of $14.57 and a two-hundred day moving average of $13.95.

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

Insider Activity

In other news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $15.81, for a total value of $3,505,187.67. Following the completion of the transaction, the insider owned 979,446 shares of the company’s stock, valued at $15,485,041.26. This represents a 18.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Cristina Junqueira sold 25,000 shares of the company’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $15.01, for a total value of $375,250.00. Following the completion of the transaction, the chief executive officer directly owned 4,877,593 shares of the company’s stock, valued at $73,212,670.93. This represents a 0.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 386,707 shares of company stock worth $6,001,588.

Institutional Investors Weigh In On NU

A number of institutional investors have recently added to or reduced their stakes in NU. Apollon Wealth Management LLC bought a new stake in shares of NU in the third quarter worth $131,000. Signaturefd LLC increased its holdings in NU by 9.9% in the third quarter. Signaturefd LLC now owns 22,340 shares of the company’s stock valued at $283,000 after purchasing an additional 2,009 shares during the period. Citizens Financial Group Inc. RI raised its position in NU by 10.2% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 72,383 shares of the company’s stock worth $916,000 after purchasing an additional 6,674 shares during the last quarter. Taylor Frigon Capital Management LLC bought a new position in NU during the 3rd quarter worth $2,395,000. Finally, Wedbush Securities Inc. raised its position in NU by 12.9% during the 3rd quarter. Wedbush Securities Inc. now owns 17,484 shares of the company’s stock worth $221,000 after purchasing an additional 1,996 shares during the last quarter. 84.02% of the stock is owned by institutional investors.

NU Company Profile

Nubank (NYSE: NU) is a digital financial services company headquartered in São Paulo, Brazil. Founded in 2013, the company was established to simplify banking through technology and expand access to financial services in markets traditionally served by large, conventional institutions.

Nubank offers a range of consumer and business products, including digital bank accounts, credit cards, personal loans, payment services, investment products and insurance. Its platform is designed to allow customers to manage accounts, payments and other financial products through mobile applications and other digital channels.

The company primarily serves customers in Brazil, Mexico and Colombia.