Are Smart Investors Making the Right Decision? Nu Holdings Ltd. (NU)

Nu Holdings Ltd. (NYSE: NU) stock fell -2.26% on Friday to $7.36 against a previous-day closing price of $7.53. With 36.52 million shares changed hands, the volume of the stock remained heavier than its average volume of 26.49 million shares. The 52-week range on NU shows that it touched its highest point at $8.29 and its lowest point at $3.39 during that stretch. It currently has a 1-year price target of $8.68. Beta for the stock currently stands at 1.21.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NU was up-trending over the past week, with a rise of 8.08%, but this was down by -3.66% over a month. Three-month performance dropped to -0.67% while six-month performance rose 59.65%. The stock gained 35.79% in the past year, while it has gained 80.84% so far this year. A look at the trailing 12-month EPS for NU yields 0.01 with Next year EPS estimates of 0.34. For the next quarter, that number is 0.06. This implies an EPS growth rate of -117.80% for this year and 61.84% for next year.

Float and Shares Shorts:

At present, 4.73 billion NU shares are outstanding with a float of 3.26 billion shares on hand for trading. On Aug 30, 2023, short shares totaled 53.68 million, which was 1.13% higher than short shares on Jul 30, 2023. In addition to Mr. David Velez-Osomo as the firm’s Founder, Chairman & CEO, Mr. Youssef Lahrech serves as its COO & Pres.

Institutional Ownership:

Through their ownership of 68.35% of NU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 22.42% of NU, in contrast to 18.70% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in NU with 3.48% of the stake, Capital Research & Management Co holds 125,291,570 shares worth 125,291,570. A second-largest stockholder of NU, Baillie Gifford & Co., holds 119,788,669 shares, controlling over 3.33% of the firm’s shares. Berkshire Hathaway, Inc. is the third largest shareholder in NU, holding 107,118,784 shares or 2.97% stake. With a 1.51% stake in NU, the American Funds EuroPacific Growth is the largest stakeholder. A total of 54,375,497 shares are owned by the mutual fund manager. The Vanguard International Growth Fun, which owns about 1.44% of NU stock, is the second-largest Mutual Fund holder. It holds 51,727,593 shares valued at 354.33 million. American Funds New World Fund holds 0.90% of the stake in NU, owning 32,334,079 shares worth 221.49 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With NU analysts setting a high price target of $11.00 and a low target of $4.00, the average target price over the next 12 months is $8.45. Based on these targets, NU could surge 49.46% to reach the target high and fall by -45.65% to reach the target low. Reaching the average price target will result in a growth of 14.81% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

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