Nu Holdings Ltd., the parent company of digital bank Nubank, saw its U.S.-traded shares decline Wednesday afternoon, dropping 26.5 cents to $13.345. The dip came despite fresh support from Wall Street, with approximately 46.8 million shares changing hands and the stock fluctuating between $13.23 and $13.58.
The timing of the decline is notable, as JPMorgan Chase & Co. recently raised its price target on Nu to $20 from $18, maintaining an “overweight” rating. This analyst call typically signals expectations that the company will outperform its benchmark or peers. According to MarketBeat, the new target implies roughly 42.5% upside from the previous close.
Governance and Analyst Activity
Nu shares are also reacting to corporate governance developments. The company filed a Form 6-K, a standard statement for foreign issuers, announcing its annual meeting scheduled for August 6 in São Paulo, with a virtual option. Shareholders will vote on the 2025 financial accounts and the re-election of nine directors. While this is routine, it refocuses attention on a stock that remains sensitive to any signals about rapid credit growth potentially increasing risk.
Wall Street Journal data indicates that analysts are predominantly “overweight” on Nu, with a median price target of $18. The shares last traded near $13.34. In late June, Needham & Co. analyst Kyle Peterson initiated coverage with a Buy rating and a $17 target. Peterson highlighted Nu’s Brazilian unit as a “scaled and profitable customer base” that could support expansion into other markets, according to Benzinga.
Credit Quality and Financial Performance
Credit conditions remain a critical factor for Nu. In May, the company reported over 135 million customers, quarterly revenue exceeding $5 billion, net income of $871 million, and a 29% return on equity. CEO David Vélez emphasized that the company is “rebuilding banking around AI.” However, the same report showed that 15-to-90-day non-performing loans (NPLs) rose to 5.0%. A sharper increase in this metric would represent the most significant risk to the stock.
The broader market context was weak. Itaú Unibanco’s U.S. shares slipped about 1%, StoneCo dropped 1.3%, MercadoLibre edged down, and the iShares MSCI Brazil ETF (EWZ) lost roughly 0.7%. The SPDR S&P 500 ETF also traded lower.
Management Transition and Buyback
Investors are also monitoring a management change at Nu. Rob Livingston, former CFO of Visa North America, is set to take over as CFO on July 13, replacing Guilherme Lago, who will transition to a special adviser role during the handover. The company stated that this change does not affect its operating model, risk appetite, or long-term strategy.
A share buyback program remains in place but has not prevented the stock from trading lower. On June 4, Nu’s board authorized a plan to repurchase up to $1 billion of Class A shares over the next year. The actual buyback amount and timing will depend on market conditions and other factors.
The recent moves in Nu’s stock reflect not a rejection of its growth narrative but rather a test of investor patience. The key question is whether Nubank can continue expanding its user base and product offerings before credit costs begin to erode profitability.
