NU (NYSE:NU) Issues Earnings Results, Beats Expectations By $0.02 EPS

NU (NYSE:NU) issued its earnings results on Thursday. The company reported $0.22 EPS for the quarter, topping the consensus estimate of $0.20 by $0.02, FiscalAI reports. The business had revenue of $5.88 billion during the quarter, compared to the consensus estimate of $5.39 billion. NU had a return on equity of 30.91% and a net margin of 18.20%.

NU Price Performance

Shares of NYSE NU traded up $0.36 during midday trading on Thursday, hitting $13.92. 63,854,379 shares of the company’s stock were exchanged, compared to its average volume of 60,711,484. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.36. The business’s fifty day moving average price is $13.41 and its two-hundred day moving average price is $14.40. The company has a market cap of $67.60 billion, a price-to-earnings ratio of 21.42, a PEG ratio of 0.55 and a beta of 0.94. NU has a 12-month low of $11.20 and a 12-month high of $18.98.

NU declared that its Board of Directors has approved a stock buyback program on Thursday, June 4th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on NU. JPMorgan Chase & Co. increased their price target on shares of NU from $18.00 to $20.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. UBS Group decreased their target price on shares of NU from $18.10 to $16.90 and set a “buy” rating on the stock in a report on Wednesday, May 20th. Susquehanna cut shares of NU from a “positive” rating to a “neutral” rating and lowered their target price for the stock from $18.00 to $13.00 in a research note on Wednesday, June 3rd. Scotiabank downgraded shares of NU to a “sector perform” rating and set a $13.00 price target for the company. in a report on Wednesday, June 3rd. Finally, Bank of America restated an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. 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’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.24.

Insider Transactions at NU

In other NU news, Director Anita M. Sands sold 21,000 shares of NU 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 sale, the director directly owned 162,150 shares in the company, valued at $1,984,716. The trade was a 11.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.20% of the stock is currently owned by insiders.

Institutional Trading of NU

Several institutional investors and hedge funds have recently made changes to their positions in NU. Caitong International Asset Management Co. Ltd grew its position in NU by 14,810.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company’s stock worth $25,000 after acquiring an additional 1,481 shares in the last quarter. Zions Bancorporation National Association UT bought a new stake in NU during the fourth quarter worth about $27,000. Hollencrest Capital Management purchased a new position in shares of NU in the 4th quarter worth about $33,000. EverSource Wealth Advisors LLC boosted its holdings in shares of NU by 63.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,768 shares of the company’s stock worth $52,000 after purchasing an additional 1,464 shares in the last quarter. Finally, Brown Brothers Harriman & Co. increased its position in shares of NU by 61.4% during the 4th quarter. Brown Brothers Harriman & Co. now owns 3,260 shares of the company’s stock valued at $55,000 after purchasing an additional 1,240 shares during the last quarter. 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.