Barclays Lowers Price Target for NU to $15.00

Investment firm Barclays has recently revised its price target for NU (NYSE:NU), reducing it from $17.00 to $15.00, as reported in a research note issued on Monday. Despite the reduction, Barclays maintains an "overweight" rating on the stock, which indicates a favorable outlook for potential investors. The new price target suggests that there may be a 39.21% upside from NU's current trading price.

Analysts from other financial institutions have also provided their insights on NU. For example, Goldman Sachs Group recently raised their price target to $19.00 with a "buy" recommendation. On the other hand, JPMorgan Chase & Co. lowered their target from $15.00 to $14.00, opting for a "neutral" stance. Additionally, Itau BBA Securities downgraded NU from an "outperform" to a "market perform" rating, while Citigroup changed their rating from "neutral" to "sell," reducing their target price further down to $11.00. Meanwhile, Susquehanna adjusted their target for NU up from $16.00 to $18.00, labeling it with a "positive" rating. Currently, in terms of ratings, one research analyst has issued a sell rating, four have a hold rating, and five analysts are issuing a buy rating for NU. The average rating stands at "Hold," with a mean target price of $15.47.

Current Stock Performance

As of Monday, NU opened at $10.78, reflecting a significant decline of 19.2% over recent weeks. The company's performance metrics indicate a 50-day simple moving average of $11.92 and a 200-day simple moving average of $13.26. To give a better picture, the stock has experienced a fifty-two week low of $9.67 and a high of $16.15. In terms of financial ratios, NU has a debt-to-equity ratio of 0.20 and both its quick and current ratios are at 0.44. The company’s market capitalization is approximately $51.35 billion, with a price-to-earnings ratio of 26.94 and a price-to-earnings-growth ratio of 0.48, alongside a beta of 1.10.

Recent Earnings Report

NU recently released its quarterly earnings on February 20. They reported earnings of $0.12 per share, aligning with analysts' consensus predictions. The company's return on equity was recorded at 30.99%, with a net margin of 17.12%. Their revenue for this quarter amounted to $2.99 billion, slightly falling short of projections which estimated $3.17 billion. Analysts are currently forecasting an earnings per share of 0.58 for the fiscal year.

Institutional Ownership Trends

In recent months, there have been notable transactions involving institutional investors in NU. For instance, Piscataqua Savings Bank markedly increased its holdings by 500% during the fourth quarter, acquiring 3,000 shares and bringing its total investment to approximately $31,000. Similarly, Orion Capital Management LLC entered a new position valued at around $50,000. TD Waterhouse Canada Inc. raised its stake by nearly 191%, now owning 4,900 shares worth $51,000 after additional purchases. Other firms like Campbell Capital Management Inc. and Cliffwater LLC have also established new stakes in NU during the same period. Collectively, hedge funds and institutional investors own 84.02% of the company's shares.

Company Overview

Nu Holdings Ltd. operates as a holding company focusing on digital banking services. Founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible in February 2016, its headquarters are located in George Town, Cayman Islands.

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