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

Nu Holdings Ltd. (NYSE:NU) saw some unusual options trading on Friday. Stock traders purchased 174,407 call options on the company. This is an increase of 119% compared to the average daily volume of 79,491 call options.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC grew its holdings in shares of NU by 63.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,768 shares of the company’s stock valued at $52,000 after purchasing an additional 1,464 shares during the last quarter. Jump Financial LLC increased its holdings in shares of NU by 541.8% during the second quarter. Jump Financial LLC now owns 185,434 shares of the company’s stock worth $2,544,000 after buying an additional 156,539 shares in the last quarter. WINTON GROUP Ltd lifted its stake in shares of NU by 38.5% in the 2nd quarter. WINTON GROUP Ltd now owns 37,156 shares of the company’s stock valued at $510,000 after acquiring an additional 10,332 shares during the last quarter. AXA S.A. boosted its holdings in shares of NU by 1.4% during the 2nd quarter. AXA S.A. now owns 192,311 shares of the company’s stock valued at $2,639,000 after acquiring an additional 2,682 shares in the last quarter. Finally, Nebula Research & Development LLC grew its position in NU by 63.7% during the 2nd quarter. Nebula Research & Development LLC now owns 19,937 shares of the company’s stock worth $274,000 after acquiring an additional 7,760 shares during the last quarter. Institutional investors and hedge funds own 84.02% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on NU. JPMorgan Chase & Co. boosted their target price on NU from $18.00 to $20.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. Needham & Company LLC upped their price objective on shares of NU from $17.00 to $19.00 and gave the company a “buy” rating in a report on Friday. Bank of America reissued an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. UBS Group reduced their target price on shares of NU from $18.10 to $16.90 and set a “buy” rating for the company in a report on Wednesday, May 20th. Finally, Susquehanna upped their price target on shares of NU from $13.00 to $16.00 and gave the company a “neutral” rating in a research note on Friday. Ten investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $17.66.

NU Stock Performance

Shares of NU stock traded up $1.32 on Friday, hitting $15.25. The company’s stock had a trading volume of 156,329,470 shares, compared to its average volume of 76,778,272. NU has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The stock’s 50 day moving average is $13.51 and its 200-day moving average is $14.38. The company has a market capitalization of $74.03 billion, a PE ratio of 20.60, a PEG ratio of 0.61 and a beta of 0.94. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58.

NU (NYSE:NU) last announced its quarterly earnings data 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 return on equity of 32.81% and a net margin of 18.65%. Equities research analysts expect that NU will post 0.83 earnings per share for the current fiscal year.

NU declared that its Board of Directors has approved a stock repurchase plan on Thursday, June 4th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its shares are undervalued.

NU News Roundup

Here are the key news stories impacting NU this week:

• Positive Sentiment: Record profitability: Second-quarter net income exceeded $1 billion, up 49% year over year, while revenue rose 39% to approximately $5.9 billion. Adjusted earnings of $0.22 per share surpassed the $0.20 consensus estimate, and revenue also topped expectations. Nubank quarterly net profit beats estimates
• Positive Sentiment: Strong operating metrics: NU’s customer base reached 139 million, activity rates improved and monthly revenue per active customer increased 22% year over year. Risk-adjusted profit margin reached a record 12.4%, supported by credit growth, risk controls and low costs per customer. Nu Holdings Q2 analysis
• Positive Sentiment: Growth outlook remains favorable: Management said margins could remain near current levels as artificial intelligence improves efficiency, credit performance remains resilient and the company expands its banking operation in Mexico. NU Q2 earnings call focuses on margins, AI and Mexico
• Positive Sentiment: Analyst and trading support: Needham raised its price target from $17 to $19 and maintained a Buy rating. Unusually heavy call-option activity also indicates increased bullish positioning, although it may add short-term volatility. Needham raises NU price target

NU Company Profile

Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.

Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.