Nu Stock in Brief

Nu logged a -12.5% change during today's afternoon session, and is now trading at a price of $3.56 per share. The S&P 500 index moved -0.6% and the Nasdaq posted a -0.7% change. NU's trading volume is 32,465,662 compared to the stock's average volume of 28,448,800.

Nu shares moved -58.2% over the last 52 weeks, with a high of $11.83 and a low of $3.26. During this time, the stock lagged the S&P 500 index by -38.3%. As of January 2022, the company's 50-day average price is $4.322. Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. The large-cap Financial Services company is based in São Paulo, Brazil. Nu has not offered any dividends in the last year.

The Company Is Unprofitable With Declining Cash Flows:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $360 $360 $1,145
Revenue Growth n/a 0.11% 218.19%
Net Margins -25.74% -47.65% -14.41%
Net Margins Growth n/a -85.12% 69.76%
Earnings Per Share -$0.02 -$0.04 -$0.1
EPS Growth n/a -100.0% -150.0%
Free Cash Flow (MM) $271 $969 -$2,953
FCF Growth n/a 257.03% -404.67%
Capital Expenditures (MM) -$5 -$8 -$28
LT Debt to Equity 0.5 0.4 0.04

Nu Is Overpriced:

Compared to the Financial Services sector's average of 13.34, Nu has a trailing twelve month price to earnings (P/E) ratio of -53.9 and, based on its EPS guidance of 0.08, an expected P/E ratio of 44.5.

Nu's price to book (P/B) ratio is 3.5 compared to its sector average of 1.95. The company is likley overvalued in terms of its net tangible assets.

Nu Is the Subject of Mixed Market Indicators:

16 analysts are following Nu and have set target prices ranging from $3 to $12.4 per share. On average, they have given the company a rating of buy. At the current price of $3.56, NU is trading -50.07% away from its average analyst target price of $7.13 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 4.5% of the company's shares are tied to short positions. Institutions own 66.1% of Nu's shares, while the insider ownership rate stands at 8.84%. The biggest shareholder is Sc Us (ttgp), Ltd. with a 16% stake in the company worth approximately $1,945,121,337.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.