NU’s (NU) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of NU (NYSE:NU) in a research report released on Monday morning,Benzinga reports. The brokerage currently has a $19.00 price objective on the stock.

A number of other brokerages also recently commented on NU. Weiss Ratings downgraded NU from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, August 21st. Scotiabank lowered NU to a “sector perform” rating and set a $13.00 price objective on the stock. in a research report on Wednesday, June 3rd. Bank of America reissued an “underperform” rating on shares of NU in a report on Tuesday, June 2nd. Wolfe Research dropped their price target 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. Finally, UBS Group raised their price target on shares of NU from $16.90 to $18.20 and gave the company a “buy” rating in a research report on Thursday, August 20th. Eight equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $18.02.

NU Price Performance

Shares of NYSE:NU opened at $12.67 on Monday. NU has a twelve month low of $11.20 and a twelve month high of $18.98. The company’s 50 day moving average is $14.31 and its 200 day moving average is $13.85. 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 cap of $61.50 billion, a PE ratio of 17.12, a price-to-earnings-growth ratio of 0.50 and a beta of 0.94.

NU (NYSE:NU) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $0.22 EPS for the quarter. The business 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%. On average, sell-side analysts forecast that NU will post 0.86 EPS for the current year.

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

Insiders Place Their Bets

In other news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $15.81, for a total transaction of $3,505,187.67. Following the completion of the sale, 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 Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Cristina Junqueira sold 65,000 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $14.71, for a total transaction 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 position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 361,707 shares of company stock worth $5,626,338 in the last 90 days. 1.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NU

Hedge funds and other institutional investors have recently modified their holdings of the business. QRG Capital Management Inc. acquired a new stake in shares of NU during the 2nd quarter worth about $316,000. Envestnet Portfolio Solutions Inc. lifted its position in NU by 25.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 19,227 shares of the company’s stock valued at $257,000 after buying an additional 3,883 shares during the last quarter. Andra AP fonden boosted its stake in NU by 17.7% during the second quarter. Andra AP fonden now owns 2,736,700 shares of the company’s stock worth $36,562,000 after buying an additional 411,500 shares during the period. Sequoia Financial Advisors LLC increased its position in shares of NU by 2.4% during the second quarter. Sequoia Financial Advisors LLC now owns 201,341 shares of the company’s stock valued at $2,690,000 after acquiring an additional 4,664 shares during the last quarter. Finally, IPG Investment Advisors LLC increased its position in shares of NU by 12.0% during the second quarter. IPG Investment Advisors LLC now owns 83,026 shares of the company’s stock valued at $1,109,000 after acquiring an additional 8,880 shares during the last quarter. 84.02% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting NU

Here are the key news stories impacting NU this week:

• Positive Sentiment: Nu rules out Monzo deal: Nu said it is not pursuing a transaction with Monzo, despite recent reports of early-stage discussions. The clarification may reassure investors that the company will avoid the cost, execution risk and potential dilution associated with an acquisition. Brazil’s Nubank says it is not pursuing deal with Monzo
• Positive Sentiment: Analyst remains highly bullish: Goldman Sachs reportedly reiterated its view that NU shares could potentially double, offering support after the stock’s recent weakness. Nu Holdings Keeps Imploding: Goldman Sachs Reiterated Its Belief That NU Shares are Going to Double
• Positive Sentiment: Speculative trading increased: Investors purchased 256,538 NU call options Tuesday, 211% above typical daily call volume. The activity indicates increased bullish speculation, although options positioning does not guarantee sustained buying in the shares.
• Neutral Sentiment: Growth remains strong but Brazil concentration is a risk: Recent analysis highlighted 55% year-over-year revenue growth, 66% net-income growth, a roughly 33% return on equity and rising average revenue per customer in the second quarter. However, approximately 85% of customers are in Brazil, leaving Nu exposed to local economic and currency volatility. Nu Holdings: Massive User Growth That The Market Does Not Reward

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.