Nu Holdings Ltd. (NYSE:NU) shares advanced in afternoon trading on Wednesday, July 1, 2026, with the stock climbing 1.16% to $13.515 just before 3 p.m. EDT. The move came on robust volume, with 47.2 million shares changing hands, reflecting strong investor interest.
Dollar turnover in Nu shares reached approximately $638 million, representing 64% of the company's $1 billion share buyback authorization announced on June 4. The buyback program, which covers Class A shares over a 12-month period, is a key support for the stock, though the company has stated it is not obligated to repurchase a specific number of shares. At the current price, the full $1 billion program would buy about 74 million shares, or roughly 1.5% of Nu's market capitalization.
Market Context and Performance
Nu's intraday range was 6.0%, significantly wider than the 1.1% range for the Invesco QQQ Trust (NASDAQ:QQQ) and the 2.2% range for the iShares MSCI Brazil ETF (NYSEARCA:EWZ). The stock outperformed the Brazil ETF and the Nasdaq tracker but trailed StoneCo (NASDAQ:STNE) and MercadoLibre (NASDAQ:MELI) through the session. Nu's dollar volume topped MercadoLibre's $575 million, despite MercadoLibre's larger market cap of $88.5 billion compared to Nu's $64.6 billion. This suggests direct money flow into Nu rather than just passive ETF flows.
The broader market was muted, with the S&P 500 barely moving, the Dow gaining 0.19%, and the Nasdaq dropping 0.22%. Traders are awaiting the U.S. jobs report due Thursday, and U.S. markets will be closed on Friday, July 3, for the Independence Day holiday.
Financial and Credit Metrics
Nu reported strong first-quarter results, with over 135 million customers and revenue exceeding $5 billion for the first time. Net income reached $871 million, up 41% year-over-year, and return on equity was 29%. CEO David Velez described it as "another strong quarter" and highlighted break-even operations in Mexico, where Nu now has 15 million customers.
However, credit quality remains a key focus. The non-performing loan (NPL) ratio for loans 15 to 90 days overdue rose to 5.0% in Q1, up 89 basis points from the previous quarter. The over-90-day NPL ratio improved slightly, falling 10 basis points to 6.5%. Credit loss allowances jumped 33% from the prior quarter to $1.79 billion, and the risk-adjusted net interest margin slipped 100 basis points to 9.5%.
Leadership and Analyst Outlook
Nu announced a change in its finance leadership, with Rob Livingston set to become CFO on July 13, succeeding Guilherme Lago, who will remain as a special adviser until August 31. Livingston joins from Visa Inc. (NYSE:V), where he served as North America CFO. CEO Velez stated that the company's priorities "are unchanged," while Livingston said he plans to focus on "optimizing capital allocation."
On the analyst front, BofA Securities downgraded Nu to Underperform from Neutral on June 2, cutting its price target from $16 to $10. Analyst Mario Pierry cited "added uncertainty" as Nu faces tighter credit conditions in Brazil while expanding in Mexico, Colombia, and the U.S. Shares currently trade at $13.515, about 35% above the new target.
Key Data Points
- Buyback Authorization: $1.0 billion over 12 months, roughly 1.5% of Nu's current market value
- Wednesday Dollar Turnover: $638 million, or 64% of the buyback total
- Q1 Revenue: Over $5 billion, a first for the company
- Q1 Net Income: $871 million, up 41% year-over-year
- 15-90 Day NPL Ratio: 5.0%, up from 4.1% in Q4
- 90+ Day NPL Ratio: 6.5%, down from 6.6% in Q4
- Credit Loss Allowances: $1.79 billion, up 33% from Q4
Nu will have a full trading session on Thursday before the NYSE closes on Friday for the Independence Day holiday. The market will closely watch for any further developments on credit quality and the new CFO's strategic direction.
