NU (NYSE:NU) Sees Strong Trading Volume – Time to Buy?

Shares of Nu Holdings Ltd. (NYSE:NU) saw an uptick in trading volume on Wednesday . Approximately 132,805,299 shares traded hands during mid-day trading, an increase of 133% from the previous session’s volume of 56,943,941 shares.The stock last traded at $14.0050 and had previously closed at $13.99.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. UBS Group dropped their price target on NU from $18.10 to $16.90 and set a “buy” rating on the stock in a research report on Wednesday, May 20th. Itau BBA Securities reissued an “outperform” rating on shares of NU in a research report on Tuesday, March 17th. Weiss Ratings cut shares of NU from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, May 13th. Susquehanna downgraded shares of NU from a “positive” rating to a “neutral” rating and reduced their target price for the stock from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Finally, Needham & Company LLC started coverage on shares of NU in a research note on Friday, June 26th. They issued a “buy” rating and a $17.00 price target for the company. Ten analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, NU has a consensus rating of “Moderate Buy” and a consensus price target of $17.24.

NU Stock Down 0.7%

The company’s 50-day moving average is $12.91 and its two-hundred day moving average is $14.83. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. The company has a market cap of $67.46 billion, a P/E ratio of 21.38, a P/E/G ratio of 0.55 and a beta of 0.95.

NU (NYSE:NU) last released its quarterly earnings data on Friday, May 15th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.01). NU had a net margin of 18.20% and a return on equity of 30.91%. The business had revenue of $5.32 billion for the quarter, compared to analysts’ expectations of $5.06 billion. As a group, equities analysts predict that Nu Holdings Ltd. will post 0.83 earnings per share for the current fiscal year.

NU announced that its Board of Directors has approved a share repurchase program on Thursday, June 4th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at NU

In other news, Director Anita M. Sands sold 21,000 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction of $257,040.00. Following the completion of the transaction, the director directly owned 162,150 shares of the company’s stock, valued at $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Institutional Investors Weigh In On NU

Several institutional investors and hedge funds have recently added to or reduced their stakes in NU. Baillie Gifford & Co. lifted its holdings in shares of NU by 2.3% during the 4th quarter. Baillie Gifford & Co. now owns 257,256,952 shares of the company’s stock valued at $4,306,481,000 after buying an additional 5,797,365 shares during the period. Morgan Stanley grew its holdings in shares of NU by 2.9% in the fourth quarter. Morgan Stanley now owns 121,350,701 shares of the company’s stock worth $2,031,411,000 after acquiring an additional 3,419,077 shares during the period. State Street Corp increased its position in NU by 0.3% during the third quarter. State Street Corp now owns 91,478,395 shares of the company’s stock valued at $1,464,569,000 after acquiring an additional 239,660 shares during the last quarter. Bank of America Corp DE increased its position in NU by 8.6% during the first quarter. Bank of America Corp DE now owns 45,966,932 shares of the company’s stock valued at $660,545,000 after acquiring an additional 3,656,945 shares during the last quarter. Finally, Norges Bank bought a new position in NU in the fourth quarter valued at about $763,792,000. Hedge funds and other institutional investors own 84.02% of the company’s stock.

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.