SAO PAULO, June 30, 2026, 18:02 BRT
- Nu Holdings Ltd. NYSE:NU added nearly 1.8% to hit $13.36 on Tuesday, outpacing the SPDR S&P 500 ETF Trust NYSEARCA:SPY, Financial Select Sector SPDR Fund (NYSEARCA:XLF) and iShares MSCI Brazil ETF (NYSEARCA:EWZ).
- Nu’s $1 billion buyback announced this month is about 1.6% of its current market value. The move could be more about sending a signal than reducing the float.
- Credit growth stayed strong in Q1, but early delinquencies also went up. This is the key issue for the stock heading into Q2 results.
Nu Holdings Ltd. NYSE:NU traded higher Tuesday, outperforming U.S. financial stocks and Brazilian names. The move points to investors putting a premium on Nu’s capital return angle, even if the announced buyback is minor compared with the company’s overall size.
Nu last traded at $13.36, up 24 cents, or 1.8%. About 45.6 million shares changed hands. The price ranged from $12.94 to $13.39, moving close to the session high in late trading. The company’s market cap was roughly $63.9 billion.
Here’s how things looked on Tuesday, with the latest quotes in for Nu and the comparison ETFs:
| Security | Latest price | Day change | Read-through for Nu |
|---|---|---|---|
| Nu Holdings Ltd. NYSE:NU | $13.36 | +1.8% | Strong demand for the name |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $746.77 | +0.7% | Nu outperformed U.S. large-caps |
| Financial Select Sector SPDR Fund (NYSEARCA:XLF) | $53.61 | -0.2% | Nu outpaced U.S. financials by about 2 points |
| iShares MSCI Brazil ETF (NYSEARCA:EWZ) | $34.50 | -0.2% | Nu outperformed Brazil ETFs by about 2 points |
The S&P 500 finished up 0.79% on Tuesday, while the Nasdaq climbed 1.52%. The Dow edged higher, adding 0.26%, Reuters reported. Gains in financials were minor, with other groups doing most of the heavy lifting.
The buyback is less obvious. On June 4, Nu said its board cleared up to $1 billion for repurchasing Class A shares over the next year. At Tuesday’s price, that works out to about 74.9 million shares, roughly 1.6% of Nu’s market cap. The plan doesn’t commit Nu to buying a set number of shares, and it can change or end the program.
| Buyback math | Figure |
|---|---|
| Repurchase plan announced | $1.0 billion |
| Nu latest market cap | $63.9 billion |
| Shares this equals at $13.36 | 74.9 million |
| Buyback size as % of market cap | 1.6% |
| Q1 net profit | $871 million |
| Buyback vs Q1 net profit | 1.15x |
This matters to investors since the buyback isn’t big enough by itself to move the stock. It’s really a signal on capital moves from a lender growing fast and still adding credit risk in Brazil, Mexico and Colombia.
Nu posted first-quarter revenue above $5 billion for the first time, net income of $871 million, and return on equity at 29%, according to founder and CEO David Vélez. Vélez called it “another strong quarter” as the company reported results. Nu International
The pressure is still on the credit side, and the stock could take more hits there. Nu’s credit portfolio jumped 40% from a year ago to $37.2 billion, while deposits climbed 22% to $42.4 billion. The loan-to-deposit ratio was up at 58.3%, compared with 49.1% last quarter. Early-stage non-performing loans (15-90 days) moved up 89 basis points from Q4 to hit 5.0%. Loans that were overdue 90-plus days dropped 10 basis points to 6.5%.
Nubank is about to shift its finance leadership. The company said Rob Livingston, who previously worked at Visa Inc. NYSE:V, will take over as CFO on July 13. He’s replacing Guilherme Lago, who will stay on as special adviser until Aug. 31. Livingston said he’s looking at “optimizing capital allocation,” with those words landing as Nubank runs a buyback and expands its loan portfolio. Business Wire
Analyst opinions are mixed. Benzinga’s analyst ratings page lists a Buy consensus for Nu, with the average price target at $14.73. That’s higher than where shares were on Tuesday, but under the $17 target Needham announced June 26. Citigroup and Susquehanna are noted among the three most recent updates.
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