NU (NYSE:NU) Shares Gap Down – Should You Sell?

Nu Holdings Ltd. (NYSE:NU)’s stock price gapped down prior to trading 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.

Wall Street Analyst Weigh In

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

NU Stock Performance

The stock has a market capitalization of $54.07 billion, a P/E ratio of 28.36, a PEG ratio of 0.48 and a beta of 1.14. 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 company’s fifty day simple moving average is $12.07 and its two-hundred day simple moving average is $12.83.

NU (NYSE:NU) last posted its quarterly earnings data on Thursday, February 20th. The company reported $0.12 earnings per share for the quarter, hitting the consensus estimate of $0.12. NU had a return on equity of 30.99% and a net margin of 17.12%. The firm had revenue of $2.99 billion for the quarter, compared to analysts’ expectations of $3.17 billion. As a group, equities analysts forecast that Nu Holdings Ltd. will post 0.58 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Piscataqua Savings Bank grew its position in NU by 500.0% during the fourth quarter. Piscataqua Savings Bank now owns 3,000 shares of the company’s stock worth $31,000 after buying an additional 2,500 shares in the last quarter. Orion Capital Management LLC acquired a new stake in shares of NU in the 4th quarter valued at $50,000. TD Waterhouse Canada Inc. increased its stake in shares of NU by 190.8% in the 4th quarter. TD Waterhouse Canada Inc. now owns 4,900 shares of the company’s stock valued at $51,000 after purchasing an additional 3,215 shares during the last quarter. Campbell Capital Management Inc. acquired a new position in shares of NU during the 4th quarter worth $52,000. Finally, Cliffwater LLC bought a new stake in shares of NU during the 4th quarter worth $57,000. 84.02% of the stock is 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.