NU Sees Unusually Large Options Volume (NYSE:NU)

Nu Holdings Ltd. (NYSE:NU) saw unusually large options trading on Tuesday. Stock investors purchased 256,538 call options on the company. This represents an increase of approximately 211% compared to the average volume of 82,486 call options.

NU Trading Up 1.2%

Shares of NU traded up $0.14 during trading hours on Tuesday, hitting $12.37. The company had a trading volume of 77,685,610 shares, compared to its average volume of 63,067,410. NU has a 52-week low of $11.20 and a 52-week high of $18.98. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.35. The stock’s 50 day moving average price is $14.38 and its 200 day moving average price is $13.87. The firm has a market cap of $60.08 billion, a P/E ratio of 16.72, a P/E/G ratio of 0.55 and a beta of 0.94.

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

NU announced that its board has authorized a share repurchase plan on Thursday, June 4th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at NU

In related news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $15.81, for a total value of $3,505,187.67. Following the transaction, the insider directly owned 979,446 shares in the company, valued at approximately $15,485,041.26. This represents a 18.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Cristina Junqueira sold 65,000 shares of NU stock in a transaction that occurred 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 sale, the chief executive officer owned 2,542,083 shares of the company’s stock, valued at approximately $37,394,040.93. The trade was a 2.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 361,707 shares of company stock valued at $5,626,338 in the last three months.

Institutional Investors Weigh In On NU

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. bought a new stake in NU in the 2nd quarter worth $316,000. Envestnet Portfolio Solutions Inc. raised its stake in shares of NU by 25.3% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 19,227 shares of the company’s stock valued at $257,000 after acquiring an additional 3,883 shares during the last quarter. Andra AP fonden boosted its holdings in shares of 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 purchasing an additional 411,500 shares during the period. Sequoia Financial Advisors LLC boosted its holdings 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 worth $2,690,000 after purchasing an additional 4,664 shares during the period. Finally, IPG Investment Advisors LLC grew its stake in shares of NU by 12.0% in the second quarter. IPG Investment Advisors LLC now owns 83,026 shares of the company’s stock worth $1,109,000 after purchasing an additional 8,880 shares during the last quarter. 84.02% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. JPMorgan Chase & Co. raised their price objective on shares of NU from $18.00 to $20.00 and gave the company an “overweight” rating in a research report on Tuesday, July 7th. Rothschild & Co Redburn set a $19.00 target price on NU in a research note on Monday. Scotiabank downgraded NU to a “sector perform” rating and set a $13.00 price target on the stock. in a research report on Wednesday, June 3rd. Itau BBA Securities lowered 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 note on Wednesday, September 16th. Finally, UBS Group upped their price objective on NU from $16.90 to $18.20 and gave the stock a “buy” rating in a report on Thursday, August 20th. Eight research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, NU has an average rating of “Moderate Buy” and a consensus target price of $18.02.

Key Stories Impacting NU

Here are the key news stories impacting NU this week:

• Positive Sentiment: Goldman Sachs reiterated its view that NU shares could potentially double, offering an important bullish counterpoint to the recent decline. Goldman Sachs NU outlook
• Positive Sentiment: Unusually strong options activity may be supporting the stock: traders purchased 256,538 NU call options, 211% above average daily call volume. This signals increased speculative interest, although it does not guarantee future gains.
• Positive Sentiment: Needham reaffirmed its Buy rating and maintained a $19 price target, implying substantial upside from recent levels. Analysts cited the selloff as a potential long-term buying opportunity. Needham buying opportunity analysis
• Positive Sentiment: A recent investment analysis maintained a Buy view, highlighting 55% year-over-year revenue growth, 66% net-income growth, a roughly 33% return on equity, rising average revenue per customer, and continued user expansion across Latin America. Nu Holdings growth analysis

NU Company Profile

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.