NU (NYSE:NU) Shares Gap Down – Should You Sell?

Shares of Nu Holdings Ltd. (NYSE:NU) gapped down before the market opened on Monday. The stock had previously closed at $13.59, but opened at $12.53. NU shares last traded at $12.5970, with a volume of 19,588,984 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts have commented on NU shares. Wolfe Research decreased their price objective on NU from $18.00 to $17.00 and set an “outperform” rating for the company in a research report on Tuesday, August 25th. UBS Group increased their price target on shares of NU from $16.90 to $18.20 and gave the stock a “buy” rating in a research report on Thursday, August 20th. Bank of America restated an “underperform” rating on shares of NU in a report on Tuesday, June 2nd. Needham & Company LLC reaffirmed a “buy” rating and set a $19.00 price objective on shares of NU in a research report on Monday. Finally, JPMorgan Chase & Co. upped their price objective on shares of NU from $18.00 to $20.00 and gave the company an “overweight” rating in a research note on Tuesday, July 7th. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $18.02.

NU Price Performance

The company has a market capitalization of $60.53 billion, a PE ratio of 16.84, a P/E/G ratio of 0.55 and a beta of 0.94. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.55 and a current ratio of 0.55. The stock has a 50 day moving average price of $14.42 and a two-hundred day moving average price of $13.89.

NU (NYSE:NU) last announced its quarterly earnings results on Tuesday, June 30th. The company reported $0.22 EPS for the quarter. NU had a return on equity of 31.59% and a net margin of 18.65%.The business had revenue of $5.88 billion during the quarter. Equities analysts forecast that Nu Holdings Ltd. will post 0.86 earnings per share for the current year.

NU announced that its board has initiated a share buyback plan on Thursday, June 4th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at NU

In other news, CEO Cristina Junqueira sold 65,000 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total transaction of $956,150.00. Following the transaction, the chief executive officer owned 2,542,083 shares in the company, valued at approximately $37,394,040.93. This trade represents a 2.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of NU 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 directly owned 979,446 shares of the company’s stock, valued at approximately $15,485,041.26. The trade was a 18.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 361,707 shares of company stock valued at $5,626,338 over the last three months.

Institutional Investors Weigh In On NU

A number of large investors have recently bought and sold shares of NU. Norges Bank acquired a new position in NU during the fourth quarter worth $763,792,000. Squadra Investments Gestao DE Recursos LTDA. lifted its position in shares of NU by 266.8% in the first quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 22,312,501 shares of the company’s stock worth $320,631,000 after buying an additional 16,229,515 shares during the last quarter. Bank of Nova Scotia boosted its stake in shares of NU by 855.9% during the 1st quarter. Bank of Nova Scotia now owns 16,111,616 shares of the company’s stock worth $231,524,000 after acquiring an additional 14,426,181 shares in the last quarter. Maverick Capital Ltd. boosted its stake in shares of NU by 91.6% during the 1st quarter. Maverick Capital Ltd. now owns 22,444,311 shares of the company’s stock worth $322,525,000 after acquiring an additional 10,729,747 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of NU by 53.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 28,310,084 shares of the company’s stock valued at $473,911,000 after acquiring an additional 9,893,940 shares during the last quarter. 84.02% of the stock is currently owned by institutional investors.

About NU

Nu Holdings Ltd., operating under the Nubank brand, is a digital financial services company that provides banking, payments and credit products through mobile applications. Its offerings include digital bank accounts, credit cards, personal loans, payment services, investment products and insurance, serving consumers and small businesses.

Founded in Brazil in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nubank was established to simplify financial services and expand access to banking through technology.