Nu Holdings Stock Buy Hold or Sell Recommendation

NU Stock  USD 10.84  0.11  1.00%   
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Nu Holdings is 'Strong Buy'. Macroaxis provides Nu Holdings buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NU positions. The advice algorithm takes into account all of Nu Holdings' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Nu Holdings' buy or sell advice are summarized below:
Real Value
10.84
Target Price
9.16
Hype Value
10.77
Market Value
10.84
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Nu Holdings given historical horizon and risk tolerance towards Nu Holdings. When Macroaxis issues a 'buy' or 'sell' recommendation for Nu Holdings, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Nu Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Nu Holdings Stock please use our How to Invest in Nu Holdings guide.
In addition, we conduct extensive research on individual companies such as Nu Holdings and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Nu Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.

Execute Nu Holdings Buy or Sell Advice

The Nu Holdings recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Nu Holdings. Macroaxis does not own or have any residual interests in Nu Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Nu Holdings' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Nu HoldingsBuy Nu Holdings
Strong Buy

Market Performance

GoodDetails

Volatility

Not too volatileDetails

Hype Condition

Over hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Nu Holdings has a Risk Adjusted Performance of 0.0944, Jensen Alpha of 0.2198, Total Risk Alpha of 0.1216, Sortino Ratio of 0.1206 and Treynor Ratio of 0.217
Our trade recommendation tool can cross-verify current analyst consensus on Nu Holdings and to analyze the entity potential to grow next year. To make sure Nu Holdings is not overpriced, please verify all Nu Holdings fundamentals, including its shares owned by institutions, debt to equity, current asset, as well as the relationship between the gross profit and target price . Given that Nu Holdings has a number of shares shorted of 61.08 M, we recommend you to check Nu Holdings market performance and probability of bankruptcy to ensure the company can sustain itself next year given your latest risk tolerance and investing horizon.

Nu Holdings Trading Alerts and Improvement Suggestions

Nu Holdings is unlikely to experience financial distress in the next 2 years
The company reports 1.17 B of total liabilities with total debt to equity ratio (D/E) of 0.13, which may suggest the company is not taking enough advantage from financial leverage. Nu Holdings has a current ratio of 0.74, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Nu Holdings until it has trouble settling it off, either with new capital or with free cash flow. So, Nu Holdings' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Nu Holdings sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Nu Holdings to invest in growth at high rates of return. When we think about Nu Holdings' use of debt, we should always consider it together with cash and equity.
Nu Holdings has a strong financial position based on the latest SEC filings
About 71.0% of Nu Holdings shares are owned by institutional investors
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Nu Holdings Returns Distribution Density

The distribution of Nu Holdings' historical returns is an attempt to chart the uncertainty of Nu Holdings' future price movements. The chart of the probability distribution of Nu Holdings daily returns describes the distribution of returns around its average expected value. We use Nu Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Nu Holdings returns is essential to provide solid investment advice for Nu Holdings.
Mean Return
0.29
Value At Risk
-2.73
Potential Upside
4.34
Standard Deviation
2.11
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Nu Holdings historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Nu Holdings Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Nu Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Nu Holdings backward and forwards among themselves. Nu Holdings' institutional investor refers to the entity that pools money to purchase Nu Holdings' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Morgan Stanley - Brokerage Accounts2023-12-31
59.6 M
Artisan Partners Limited Partnership2023-12-31
54.1 M
D. E. Shaw & Co Lp2023-09-30
48.6 M
Ribbit Management Company, Llc2023-12-31
43.6 M
Redpoint Management, Llc2023-12-31
42.4 M
Fidelity International Ltd2023-12-31
41.8 M
T. Rowe Price Associates, Inc.2023-12-31
41.2 M
Fmr Inc2023-12-31
36.2 M
Kontiki Capital Management (hk) Ltd.2023-12-31
35.7 M
Sc Us (ttgp), Ltd.2023-12-31
252.3 M
Capital Research Global Investors2023-12-31
175.2 M
Note, although Nu Holdings' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Nu Holdings Cash Flow Accounts

201920202021202220232024 (projected)
Investments(4.7M)(16.3M)(11.2M)(127.2M)(173.8M)(165.1M)
Change In Cash867.4M1.1B361.9M1.5B1.8B1.0B
Net Borrowings209.1M(66.7M)(15.0M)405.5M466.3M489.7M
Free Cash Flow271.5M969.2M(3.0B)641.3M8.5B8.9B
Depreciation5.1M7.4M17.3M35.6M62.9M66.0M
Other Non Cash Items201.8M261.9M1.0B3.1B14.7B15.4B
Capital Expenditures4.7M8.0M28.5M114.3M177.0M185.9M
Net Income(92.5M)(171.5M)(165.3M)(364.6M)1.0B1.1B
End Period Cash Flow1.2B2.3B2.7B4.2B5.9B3.1B
Change To Netincome179.9M256.1M943.3M2.9B3.4B3.5B

Nu Holdings Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Nu Holdings or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Nu Holdings' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Nu Holdings stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.22
β
Beta against NYSE Composite1.30
σ
Overall volatility
2.15
Ir
Information ratio 0.11

Nu Holdings Volatility Alert

Nu Holdings has relatively low volatility with skewness of 0.01 and kurtosis of 0.8. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nu Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nu Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Nu Holdings Implied Volatility

Nu Holdings' implied volatility exposes the market's sentiment of Nu Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nu Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nu Holdings stock will not fluctuate a lot when Nu Holdings' options are near their expiration.

Nu Holdings Fundamentals Vs Peers

Comparing Nu Holdings' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Nu Holdings' direct or indirect competition across all of the common fundamentals between Nu Holdings and the related equities. This way, we can detect undervalued stocks with similar characteristics as Nu Holdings or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Nu Holdings' fundamental indicators could also be used in its relative valuation, which is a method of valuing Nu Holdings by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Nu Holdings to competition
FundamentalsNu HoldingsPeer Average
Return On Equity0.18-0.31
Return On Asset0.0281-0.14
Profit Margin0.28 %(1.27) %
Operating Margin0.46 %(5.51) %
Current Valuation47.1 B16.62 B
Shares Outstanding3.68 B571.82 M
Shares Owned By Insiders21.88 %10.09 %
Shares Owned By Institutions70.72 %39.21 %
Number Of Shares Shorted61.08 M4.71 M
Price To Earning22.70 X28.72 X
Price To Book8.40 X9.51 X
Price To Sales14.52 X11.42 X
Revenue7.01 B9.43 B
Gross Profit1.84 B27.38 B
EBITDA1.6 B3.9 B
Net Income1.03 B570.98 M
Cash And Equivalents1.18 M2.7 B
Cash Per Share1.00 X5.01 X
Total Debt1.17 B5.32 B
Debt To Equity0.13 %48.70 %
Current Ratio0.76 X2.16 X
Book Value Per Share1.34 X1.93 K
Cash Flow From Operations8.69 B971.22 M
Short Ratio2.11 X4.00 X
Earnings Per Share0.21 X3.12 X
Target Price11.35
Beta1.08-0.15
Market Capitalization51.66 B19.03 B
Total Asset43.35 B29.47 B
Retained Earnings1.28 B9.33 B
Working Capital(828.13 M)1.48 B
Current Asset2.1 B9.34 B
Current Liabilities2.93 B7.9 B
Note: Disposition of 2488 shares by Schweiger Werner J of Nu Holdings at 55.8 subject to Rule 16b-3 [view details]

Nu Holdings Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Nu Holdings . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Nu Holdings Buy or Sell Advice

When is the right time to buy or sell Nu Holdings? Buying financial instruments such as Nu Holdings Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total164.9M605.9M1.2B1.2B
Total Assets19.9B29.9B43.3B45.5B

Use Investing Ideas to Build Portfolios

In addition to having Nu Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Precious Metals
Precious Metals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals Theme or any other thematic opportunities.
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When determining whether Nu Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Nu Holdings Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Nu Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Nu Holdings Stock:
Check out Nu Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Nu Holdings Stock please use our How to Invest in Nu Holdings guide.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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Is Nu Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nu Holdings. If investors know Nu Holdings will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nu Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
38
Earnings Share
0.21
Revenue Per Share
0.782
Quarterly Revenue Growth
0.922
Return On Assets
0.0281
The market value of Nu Holdings is measured differently than its book value, which is the value of Nu Holdings that is recorded on the company's balance sheet. Investors also form their own opinion of Nu Holdings' value that differs from its market value or its book value, called intrinsic value, which is Nu Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nu Holdings' market value can be influenced by many factors that don't directly affect Nu Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nu Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Nu Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nu Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.