Are You Looking To Buy Nu Holdings Ltd. (NU)? First, Read This

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Nu Holdings Ltd. (NYSE:NU) finished Thursday with an addition of $0.15 to close at $4.06, an upside of 3.84 percent. An average of 13,285,960 shares of common stock have been traded in the last five days. There was a gain of $0.15 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 20,919,529 shares traded, while the 50-day average volume stands at 28,005,520.

NU stock has decreased by -4.69% in the last month. The company shares reached their 1-month lowest point of $3.72 on 12/15/22. With the stock rallying to its 52-week high on 02/18/22, shares of the company touched a low of $3.26 and a high of $11.83 in 52 weeks. It has reached a new high 4 times so far this year and lost -56.72% or -$5.32 in price. In spite of this, the price is down -65.68% from the 52-week high.


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Valuation Metrics

Nu Holdings Ltd. (NU) has a trailing price-to-sales (P/S) ratio at 4.70, the price-to-book (PB) ratio at 4.02.

Financial Health

Further, the company has a long term debt to equity ratio of 0.09 and a total debt to equity ratio of 3.07 for the quarter ending September 29. Its gross profit as reported stood at $679.4 million compared to revenue of $1.05 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Nu Holdings Ltd.’s return on assets was -0.60%.

Earnings Surprise

For the three-month period that ended September 29, Nu Holdings Ltd. had $8.61 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $221.61 million in the quarter, while revenues of $234.61 million were grew 19.95%. The analyst consensus anticipated Nu Holdings Ltd.’s latest quarter earnings to come in at $0.01 per share, but it turned out to be $0.01, a 0.00% surprise. At the end of the quarter ending September 29, Nu Holdings Ltd.’s stock balance sheet showed total debt was $556.03 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Nu Holdings Ltd. (NU) price momentum. RSI 9-day as of the close on 29 December was 55.42%, suggesting the stock is Neutral, with historical volatility in this time frame at 34.22%.

As of today, NU’s price is $3.91 +3.84% or $0.15 from its 5-day moving average. NU is currently trading -8.76% lower than its 20-day SMA and -14.53% lower than its 100-day SMA. However, the stock’s current price level is -7.73% below the SMA50 and -32.11% below the SMA200.

The stochastic %K and %D were 42.86% and 34.69%, respectively, and the average true range (ATR) was 0.18. With the 14-day stochastic at 69.39% and the average true range at 0.21, the RSI (14) stands at 49.76%. The stock has reached 0.03 on the 9-day MACD Oscillator while the 14-day reading was at 0.04.

Analyst Ratings

JP Morgan upgraded Nu Holdings Ltd. (NYSE: NU) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Underweight. The consensus rating for Nu Holdings Ltd. (NU) among analysts is Overweight. According to current brokerage recommendations, 3 brokerage firms advise that investors sell NU, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 12 others rate it as a “buy”.

What is NU’s price target for the next 12 months?

Analysts predict a range of price targets between $3.00 and $12.40, with a median target of $6.50. Taking a look at these predictions, the average price target given by analysts for Nu Holdings Ltd. (NU) stock is $6.76.

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