NU (NYSE:NU) Shares Gap Up – Time to Buy?

Shares of Nu Holdings Ltd. (NYSE:NU) 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.

Trending Headlines about NU

These are some of the NU headlines that stood out recently:

• Positive Sentiment: Nu reported record Q3 revenue of $6.26 billion, topping the roughly $5.96 billion analyst estimate, and record net income of $1.09 billion. EPS was $0.22, just below the $0.23 estimate cited by some analysts. Article: Nu Holdings Surges on Record Q3 Earnings Beat
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $19 price target, while unusually high call-option activity also pointed to increased bullish positioning. Needham rating information
• Negative Sentiment: Rising non-performing loans remain a risk investors are watching, and reported EPS came in slightly below some consensus estimates despite the revenue beat. Article: Nu Holdings Earnings and Investor Concerns

Analysts Set New Price Targets

Several research firms have weighed in on NU. Itau BBA Securities downgraded NU from an “outperform” rating to a “market perform” rating and dropped their price target for the stock from $20.00 to $18.00 in a research report on Wednesday, September 16th. JPMorgan Chase & Co. upped their price objective on shares of NU from $20.00 to $23.00 and gave the company an “overweight” rating in a research note on Tuesday, October 6th. Needham & Company LLC reaffirmed a “buy” rating and issued a $19.00 target price on shares of NU in a research note on Friday. Weiss Ratings raised NU from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, November 9th. Finally, Rothschild & Co Redburn set a $19.00 price objective on shares of NU in a research note on Monday, September 28th. Ten analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $18.25.

NU Stock Up 11.0%

The stock has a market capitalization of $63.79 billion, a price-to-earnings ratio of 16.42, a price-to-earnings-growth ratio of 0.49 and a beta of 0.97. The firm has a 50-day moving average of $13.76 and a 200 day moving average of $14.22. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35.

NU (NYSE:NU) last announced its earnings results on Thursday, November 12th. The company reported $0.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.01). NU had a return on equity of 32.54% and a net margin of 18.66%. The business had revenue of $6.26 billion for the quarter, compared to analysts’ expectations of $5.96 billion. During the same period in the previous year, the firm posted $0.16 earnings per share. On average, sell-side analysts anticipate that Nu Holdings Ltd. will post 0.85 earnings per share for the current year.

Insider Buying and Selling at NU

In other news, CEO Cristina Junqueira sold 25,000 shares of the company’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $15.01, for a total transaction 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 approximately $73,212,670.93. This represents a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 115,000 shares of company stock worth $1,706,400. 1.20% of the stock is owned by corporate insiders.

Institutional Trading of NU

Several hedge funds have recently added to or reduced their stakes in the business. GK Wealth Management LLC acquired a new stake in NU in the third quarter worth approximately $31,000. Harbor Investment Advisory LLC grew its position in NU by 68.2% during the 2nd quarter. Harbor Investment Advisory LLC now owns 3,010 shares of the company’s stock worth $40,000 after purchasing an additional 1,220 shares in the last quarter. Allianz SE raised its stake in NU by 279.5% during the 3rd quarter. Allianz SE now owns 3,567 shares of the company’s stock valued at $45,000 after purchasing an additional 2,627 shares during the period. Ancora Advisors LLC purchased a new stake in shares of NU in the second quarter valued at $76,000. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of NU by 58.1% during the first quarter. EverSource Wealth Advisors LLC now owns 6,468 shares of the company’s stock valued at $93,000 after buying an additional 2,377 shares in the last quarter. Institutional investors own 84.02% of the company’s stock.

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.