NU (NYSE:NU) Shares Gap Up After Better-Than-Expected Earnings

Shares of Nu Holdings Ltd. (NYSE:NU) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $12.01, but opened at $13.40. NU shares last traded at $13.50, with a volume of 38,603,984 shares traded.

The company reported $0.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02. The business had revenue of $3.70 billion for the quarter, compared to analysts’ expectations of $3.78 billion. NU had a return on equity of 31.42% and a net margin of 17.90%. During the same period in the previous year, the firm posted $0.12 EPS.

Analysts Set New Price Targets

NU has been the topic of a number of recent research reports. Susquehanna lifted their target price on NU from $14.00 to $15.00 and gave the stock a “positive” rating in a report on Wednesday, May 14th. Barclays boosted their target price on shares of NU from $15.00 to $16.00 and gave the company an “overweight” rating in a research note on Friday, April 25th. Morgan Stanley reissued an “overweight” rating on shares of NU in a research note on Friday, June 13th. Finally, JPMorgan Chase & Co. boosted their target price on shares of NU from $14.50 to $16.00 and gave the company an “overweight” rating in a research note on Monday, June 30th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $15.50.

Hedge Funds Weigh In On NU

A number of hedge funds have recently modified their holdings of NU. Armstrong Advisory Group Inc. acquired a new position in shares of NU in the second quarter worth $27,000. NBC Securities Inc. increased its stake in shares of NU by 286,000.0% in the first quarter. NBC Securities Inc. now owns 2,861 shares of the company’s stock worth $29,000 after acquiring an additional 2,860 shares during the last quarter. Capital Analysts LLC acquired a new position in shares of NU in the first quarter worth $31,000. TFC Financial Management Inc. increased its stake in shares of NU by 74.1% in the first quarter. TFC Financial Management Inc. now owns 3,114 shares of the company’s stock worth $32,000 after acquiring an additional 1,325 shares during the last quarter. Finally, ORG Partners LLC increased its stake in shares of NU by 474.1% in the second quarter. ORG Partners LLC now owns 2,325 shares of the company’s stock worth $32,000 after acquiring an additional 1,920 shares during the last quarter. 84.02% of the stock is owned by institutional investors and hedge funds.

NU Price Performance

The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $63.03 billion, a price-to-earnings ratio of 28.44, a P/E/G ratio of 0.68 and a beta of 1.05. The stock’s 50 day moving average price is $12.76 and its two-hundred day moving average price is $12.16.

About NU

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.