NU (NYSE:NU) Shares Gap Down – Here’s Why

Nu Holdings Ltd. (NYSE:NU) shares gapped down before the market opened on Tuesday . The stock had previously closed at $11.69, but opened at $11.36. NU shares last traded at $11.49, with a volume of 7,414,752 shares trading hands.

Analysts Set New Price Targets

NU has been the subject of a number of research analyst reports. UBS Group dropped their price target on NU from $15.50 to $15.00 and set a “neutral” rating for the company in a research note on Tuesday, February 18th. JPMorgan Chase & Co. dropped their target price on shares of NU from $15.00 to $14.00 and set a “neutral” rating for the company in a research report on Monday, February 24th. Citigroup downgraded shares of NU from a “neutral” rating to a “sell” rating and decreased their price target for the stock from $14.60 to $11.00 in a research note on Monday, December 2nd. Finally, Barclays cut their price objective on NU from $17.00 to $15.00 and set an “overweight” rating on the stock in a research report on Monday, February 24th. One research analyst has rated the stock with a sell rating, four have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $15.47.

NU Stock Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.44 and a current ratio of 0.44. The stock has a market capitalization of $52.03 billion, a P/E ratio of 27.29, a PEG ratio of 0.48 and a beta of 1.14. The business has a 50-day moving average price of $12.07 and a 200 day moving average price of $12.80.

NU (NYSE:NU) last released its earnings results on Thursday, February 20th. The company reported $0.12 EPS for the quarter, hitting the consensus estimate of $0.12. The business had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $3.17 billion. NU had a return on equity of 30.99% and a net margin of 17.12%. As a group, sell-side analysts forecast that Nu Holdings Ltd. will post 0.58 EPS for the current fiscal year.

Institutional Trading of NU

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank bought a new stake in shares of NU during the fourth quarter valued at approximately $447,762,000. State Street Corp increased its holdings in shares of NU by 105.9% in the 3rd quarter. State Street Corp now owns 78,865,138 shares of the company’s stock worth $1,076,509,000 after purchasing an additional 40,560,986 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of NU by 2,193.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 18,109,184 shares of the company’s stock worth $187,611,000 after purchasing an additional 17,319,681 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of NU by 104.3% during the third quarter. Geode Capital Management LLC now owns 32,597,803 shares of the company’s stock valued at $442,935,000 after purchasing an additional 16,638,397 shares in the last quarter. Finally, D1 Capital Partners L.P. purchased a new stake in shares of NU during the fourth quarter valued at $154,209,000. 84.02% of the stock is currently owned by institutional investors.

NU Company Profile

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.