Nu Holdings Ltd. (NYSE:NU) finished Thursday with a subtraction of -$0.18 to close at $7.07, a downside of -2.48 percent. An average of 22,427,000 shares of common stock have been traded in the last five days. There was a fall of -$0.07 in the past week, and it reached a new high 21 times over the past 12 months. The last 20 days have seen an average of 21,422,180 shares traded, while the 50-day average volume stands at 24,264,523.
NU stock has decreased by -9.94% in the last month. The company shares reached their 1-month lowest point of $6.61 on 08/18/23. With the stock rallying to its 52-week high on 07/13/23, shares of the company touched a low of $3.39 and a high of $8.29 in 52 weeks. It has reached a new high 29 times so far this year and achieved 73.71% or $3.00 in price. In spite of this, the price is down -14.72% from the 52-week high.
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Valuation Metrics
Nu Holdings Ltd. (NU) has a trailing price-to-earnings (P/E) ratio of 505.00. The stock’s beta is 1.20. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.32, the price-to-book (PB) ratio at 5.94, and the price-to-cash flow ratio at 17.98.
Financial Health
Further, the company has a long term debt to equity ratio of 0.13 and a total debt to equity ratio of 3.36 for the quarter ending June 29. Nu Holdings Ltd.’s EBITDA margin for the year ending June 29 is -7.32%, while its operating margin for the same period stands at 5.60%. Its gross profit as reported stood at $2.01 billion compared to revenue of $3.56 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 0.30%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $819.55 million in the quarter, while revenues were grew 72.96%. The analyst consensus anticipated Nu Holdings Ltd.’s latest quarter earnings to come in at $0.04 per share, but it turned out to be $0.05, a 25.00% surprise. At the end of the quarter ending June 29, Nu Holdings Ltd.’s stock balance sheet showed total debt was $974.1 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 24 August was 28.67%, suggesting the stock is oversold, with historical volatility in this time frame at 45.44%.
As of today, NU’s price is $7.25 -0.98% or -$0.07 from its 5-day moving average. NU is currently trading -9.13% lower than its 20-day SMA and +48.53% higher than its 100-day SMA. However, the stock’s current price level is -6.23% below the SMA50 and +45.17% above the SMA200.
The stochastic %K and %D were 38.45% and 42.08%, respectively, and the average true range (ATR) was 0.32. With the 14-day stochastic at 28.84% and the average true range at 0.30, the RSI (14) stands at 34.60%. The stock has reached -0.21 on the 9-day MACD Oscillator while the 14-day reading was at -0.35.
Analyst Ratings
Citigroup downgraded Nu Holdings Ltd. (NYSE: NU) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Nu Holdings Ltd. (NU) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell NU, while 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 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 $4.00 and $11.00, with a median target of $8.85. Taking a look at these predictions, the average price target given by analysts for Nu Holdings Ltd. (NU) stock is $8.52.
