Nu Holdings Ltd. [NU] Stock trading around $4.07 per share: What’s Next?

Nu Holdings Ltd. [NYSE: NU] traded at a high on 12/30/22, posting a 0.25 gain after which it closed the day’ session at $4.07. The company report on November 14, 2022 that Nu Holdings Ltd. Reports Third Quarter 2022 Financial Results.


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Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the “Company”), one of the world’s largest digital financial services platforms, released today its Third Quarter 2022 financial results. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards (IFRS). The full earnings release has been made available on the Company’s Investor Relations website at www.investors.nu, as well as the details of the Earnings Conference Call Nu will hold today at 5:00pm Eastern time/7:00pm Brasília time.

“Nu reported a net profit of $7.8 million in the third quarter, breaking even at the holding level with record revenues of $1.3 billion and year-on-year growth of 171%. Our customer base grew to over 70 million with a record high activity rate of 82% and a leading customer satisfaction score in our industry. We continue to launch and cross sell best-in-class products, while keeping a low-cost tech platform with low cost of funding and a widening profit margin. While we saw increased delinquency in the quarter, consistent with the market trend, our risk-adjusted margins expanded by 100bps, showing we are being able to price increased risk appropriately. Nu is well capitalized and is positioned to deliver growth at scale in the long term,” said David Vélez, founder and CEO.

The results of the trading session contributed to over 12283129 shares changing hands. Over the past one week, the price volatility of Nu Holdings Ltd. stands at 3.68% while the volatility over the past one month is 4.51%.

The market cap for NU stock reached $18.82 billion, with 4.68 billion shares outstanding and 3.13 billion shares in the current float. Compared to the average trading volume of 28.67M shares, NU reached a trading volume of 12283129 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Nu Holdings Ltd. [NU]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NU shares is $7.13 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NU stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Nu Holdings Ltd. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 08, 2022. The new note on the price target was released on November 11, 2022, representing the official price target for Nu Holdings Ltd. stock. Previously, the target price had yet another raise to $6.50, while Credit Suisse analysts kept a Outperform rating on NU stock.

The Average True Range (ATR) for Nu Holdings Ltd. is set at 0.19, with the Price to Sales ratio for NU stock in the period of the last 12 months amounting to 4.73. The Price to Book ratio for the last quarter was 4.03, with the Price to Cash per share for the same quarter was set at 0.39.

How has NU stock performed recently?

Nu Holdings Ltd. [NU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.44. With this latest performance, NU shares dropped by -8.54% in over the last four-week period, additionally plugging by 4.09% over the last 6 months – not to mention a drop of -56.70% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NU stock in for the last two-week period is set at 50.11, with the RSI for the last a single of trading hit 55.99, and the three-weeks RSI is set at 48.04 for Nu Holdings Ltd. [NU]. The present Moving Average for the last 50 days of trading for this stock 4.32, while it was recorded at 3.95 for the last single week of trading, and 4.85 for the last 200 days.

Nu Holdings Ltd. [NU]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Nu Holdings Ltd. [NU] shares currently have an operating margin of -12.28 and a Gross Margin at +63.78. Nu Holdings Ltd.’s Net Margin is presently recorded at -11.91.

Return on Equity for this stock declined to -6.76, with Return on Assets sitting at -1.10.

Insider trade positions for Nu Holdings Ltd. [NU]

There are presently around $8,945 million, or 66.00% of NU stock, in the hands of institutional investors. The top three institutional holders of NU stocks are: SC US (TTGP), LTD. with ownership of 546,382,407, which is approximately -1.632% of the company’s market cap and around 8.84% of the total institutional ownership; GALILEO (PTC) LTD, holding 415,539,300 shares of the stock with an approximate value of $1.69 billion in NU stocks shares; and JENNISON ASSOCIATES LLC, currently with $383.77 million in NU stock with ownership of nearly 74.302% of the company’s market capitalization.

Positions in Nu Holdings Ltd. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 167 institutional holders increased their position in Nu Holdings Ltd. [NYSE:NU] by around 260,435,686 shares. Additionally, 63 investors decreased positions by around 445,937,429 shares, while 34 investors held positions by with 1,491,330,233 shares. The mentioned changes placed institutional holdings at 2,197,703,348 shares, according to the latest SEC report filing. NU stock had 73 new institutional investments in for a total of 41,222,650 shares, while 20 institutional investors sold positions of 109,452,805 shares during the same period.

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