Nu Holdings stock hits 52-week low at $9.66 amid market shifts

Nu Holdings Ltd (BVMF:ROXO34)., a financial technology company valued at nearly $50 billion, has seen its stock price touch a 52-week low, dipping to $9.66. According to InvestingPro data, the stock is trading at a low P/E ratio relative to its near-term earnings growth, with impressive revenue growth of 49% over the past year. This latest price movement underscores a challenging period for the company, which has experienced a significant downturn over the past year. The 1-year change data for Nu Holdings (NYSE:NU) reveals a decline of 21.79%, reflecting investor concerns and broader market trends that have impacted the fintech sector. As shareholders and analysts watch closely, with price targets ranging from $9 to $18.90, the company’s strategies to navigate through these headwinds and drive future growth remain in sharp focus. Get deeper insights into Nu Holdings’ valuation and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Nu Holdings Ltd . reported fourth-quarter revenue of $2.99 billion, surpassing analyst expectations of $2.74 billion. Despite this earnings beat, the company’s net interest margin contracted by 70 basis points to 17.7%, influenced by foreign exchange volatility and its deposit strategy in Mexico and Colombia. The company added 4.5 million customers during the quarter, increasing its total customer base to 114.2 million, a 22% year-over-year growth. Nu Holdings also reported a net income of $552.6 million, up 85% year-over-year on a foreign exchange-neutral basis, with an annualized return on equity of 29%.

In a separate development, Citi analyst Ashwin Shirvaikar maintained a Sell rating on Nu Holdings, setting a price target of $9.00. Shirvaikar noted that while the broader banking system in Mexico typically sees a decline in deposits in January, Nubank has shown significant growth, possibly due to its early growth phase and strong brand recognition. Meanwhile, BofA Global Research analyst Mario Perry maintained a Neutral rating on Nu Holdings with a price target of $14.00, highlighting the company’s efforts in its high-income strategy in Brazil. Perry noted that while asset quality improved, revenue growth was slower, affecting the company’s risk-adjusted net interest margin.

Additionally, Nu Holdings announced a significant restructuring of its management team to enhance customer focus and operational efficiency. David Vélez, the company’s founder and CEO, will take direct control over the management team, with key roles being filled and responsibilities reallocated to adapt to evolving market needs.

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