NU Sees Unusually High Options Volume (NYSE:NU)

Nu Holdings Ltd. (NYSE:NU) saw some unusual options trading activity on Wednesday. Investors purchased 116,335 call options on the stock. This is an increase of approximately 61% compared to the typical volume of 72,111 call options.

Insider Activity

In related news, CEO Cristina Helena Zing Junqueira sold 300,000 shares of the company’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $14.81, for a total transaction of $4,443,000.00. Following the completion of the sale, the chief executive officer owned 2,312,338 shares of the company’s stock, valued at approximately $34,245,725.78. This represents a 11.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Anita M. Sands sold 21,000 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $12.24, for a total transaction of $257,040.00. Following the sale, the director directly owned 162,150 shares of the company’s stock, valued at approximately $1,984,716. This represents a 11.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Investors Weigh In On NU

Hedge funds have recently added to or reduced their stakes in the business. LOM Asset Management Ltd acquired a new stake in NU during the 4th quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd lifted its holdings in NU by 14,810.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company’s stock worth $25,000 after buying an additional 1,481 shares in the last quarter. Cornerstone Planning Group LLC lifted its holdings in NU by 5,448.3% during the 4th quarter. Cornerstone Planning Group LLC now owns 1,609 shares of the company’s stock worth $27,000 after buying an additional 1,580 shares in the last quarter. Zions Bancorporation National Association UT acquired a new stake in NU during the 4th quarter worth approximately $27,000. Finally, Morse Asset Management Inc acquired a new stake in NU during the 4th quarter worth approximately $31,000. 84.02% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Susquehanna lowered shares of NU from a “positive” rating to a “neutral” rating and decreased their target price for the company from $18.00 to $13.00 in a report on Wednesday, June 3rd. Bank of America reiterated an “underperform” rating on shares of NU in a report on Tuesday, June 2nd. 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. Weiss Ratings lowered shares of NU from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, May 13th. Finally, CICC Research assumed coverage on shares of NU in a report on Tuesday, April 14th. They issued an “outperform” rating and a $18.00 target price on the stock. Nine analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.08.

NU Stock Performance

Shares of NU stock opened at $12.74 on Wednesday. The firm’s 50 day moving average price is $13.51 and its 200-day moving average price is $15.33. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58. NU has a one year low of $11.20 and a one year high of $18.98. The firm has a market cap of $61.85 billion, a P/E ratio of 19.60, a P/E/G ratio of 0.50 and a beta of 0.95.

NU (NYSE:NU) last issued 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 return on equity of 30.91% and a net margin of 18.20%.The company had revenue of $5.32 billion during the quarter, compared to analyst estimates of $5.06 billion. As a group, equities research analysts predict that NU will post 0.84 EPS for the current year.

NU declared that its Board of Directors has approved a stock repurchase program on Thursday, June 4th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

About NU

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.