New York, June 4, 2026, 12:05 (EDT)
Nu Holdings Ltd. shares jumped Thursday midday after the Nubank parent signed off on a $1 billion buyback. That follows a week hit by analyst downgrades and fresh concerns about its finance chief switch.
The stock traded at $12.11, up 4.0%, near 11:50 a.m. in New York. It moved between $11.59 and $12.21 during the morning. That gain beat the SPY, which only added 0.1%, and the QQQ, which was down 0.8%. The action points to a rebound tied to the company itself, not the wider market.
Timing is key. A buyback lets a company spend cash to buy its own shares and can prop up earnings per share. It may tell the market the stock is cheap in the eyes of management. But for Nu, it doesn’t answer the bigger questions. There’s still the issue of credit growth, Brazil risk, and the effort to grow outside Latin America. High returns depend on how those play out.
Nu said in a filing its board signed off on a buyback program for up to $1 billion in Class A ordinary shares over a 12-month stretch running from June 4, 2026 to June 3, 2027. According to the filing, the company can repurchase shares on the open market, via derivatives, or using negotiated deals. There is no minimum number of shares it has to repurchase and Nu can change or end the plan.
Nu said it plans to use cash from retained and future earnings to pay for the buybacks. In another statement, the company said growth outlays in Brazil, Mexico, Colombia and the U.S., with capital buffers, are still fully covered.
Nu announced the buyback three days after tapping Rob Livingston, ex-finance chief at Visa North America, to take over as CFO on July 13. Guilherme Lago, who is stepping down, will stay on as special adviser until Aug. 31 for the transition. Founder and CEO David Velez called Livingston “the right person” to lead the finance team into the next phase. Nu International
BofA Securities’ Mario Pierry moved Nu to Underperform from Neutral after the CFO switch, dropping his price target to $10 from $16. Pierry said Lago had been a “key market-facing executive” and called the timing of the handover a source of “uncertainty” for the company as it moves through tougher credit in Brazil and looks to grow in Mexico, Colombia and the U.S. Investing.com
Susquehanna’s James Friedman cut Nu to Neutral from Positive and slashed his price target to $13 from $18, citing “deteriorating operating margins” and an “anticipated investment cycle.” The analyst highlighted that first-quarter operating margins dropped 760 basis points, or 7.6 percentage points, to 19.2%. Investing.com
Nu posted record revenue above $5 billion in the first quarter, with net income at $871 million and return on equity hitting 29%. Still, credit-loss allowances jumped 33% quarter-on-quarter to $1.79 billion. Risk-adjusted net interest margin dropped to 9.5% from 10.5%. Both bulls and bears got ammo in these numbers.
Peer trading stayed muted. U.S.-listed shares of Itaú Unibanco were up 1.4%, and Santander Brasil added 1.1%. Nu’s rebound outpaced these big Brazilian banks. Investors continue to weigh Nubank’s digital-focused growth against traditional rivals with longer credit records.
Still, the buyback doesn’t take away the risks. If credit costs rise again in Brazil, or if the CEO switch to Livingston shakes investors, or if Nu’s expenses in the U.S. and Mexico are higher than expected, the company might hang onto cash instead of using the whole buyback. The plan just gives the OK—it’s not a guarantee.
Nu shares have shifted. The stock isn’t just moving on CFO risk headlines any more. It’s about whether investors think Nu’s cash can both fuel growth and return money through buybacks.
