New York, June 4, 2026, 12:05 (EDT)
Nu Holdings Ltd. shares rose sharply Thursday midday as the Nubank parent approved a $1 billion buyback. The news lands after a week of analyst downgrades and renewed worries over its finance chief change.
The stock was at $12.11, up 4.0%, just before noon in New York. Shares moved between $11.59 and $12.21 earlier in the session. The stock outperformed the SPY’s 0.1% gain. QQQ dropped 0.8%. The move looks like a bounce for the stock itself, not because of market direction.
Nu’s buyback is all about timing. Repurchasing stock uses up cash and can lift earnings per share, sometimes signaling that the shares look undervalued to management. But that move doesn’t settle the bigger issues for Nu. Credit growth, what happens with Brazil, and expansion beyond Latin America are all still hanging over the stock. The returns will turn on how those factors shake out.
Nu said in a filing its board approved a buyback plan covering as much as $1 billion in Class A ordinary shares. The repurchase window is set from June 4, 2026 through June 3, 2027. The company said shares could be bought on the open market, through derivatives, or by negotiating transactions. Nu is not required to buy back a minimum number of shares and can modify or drop the program.
Nu said it will fund the buybacks with cash from retained and future earnings. In a separate release, the company said that spending plans in Brazil, Mexico, Colombia and the U.S. are still fully covered by capital buffers.
Nu said it will buy back shares just days after bringing in Rob Livingston, the former finance chief at Visa North America, to be its next CFO starting July 13. Guilherme Lago, the departing CFO, will shift to a special adviser role until Aug. 31. CEO David Velez said Livingston is “the right person” to lead finance going forward. Nu International
BofA Securities’ Mario Pierry cut Nu to Underperform from Neutral after the CFO change, slicing the price target to $10 from $16. Pierry said Lago was a “key market-facing executive” and called the timing of the CFO handoff a point of “uncertainty” for Nu as it faces a tougher credit environment in Brazil and tries to expand in Mexico, Colombia and the U.S. Investing.com
Susquehanna analyst James Friedman downgraded Nu to Neutral from Positive and cut his price target on the stock to $13 from $18. He pointed to “deteriorating operating margins” and a coming “anticipated investment cycle.” Friedman said Nu’s first-quarter operating margin sank 760 basis points to 19.2%. Investing.com
Nu booked record revenue over $5 billion for the quarter, while net income landed at $871 million and return on equity came in at 29%. Credit-loss allowances still climbed 33% from the prior quarter to $1.79 billion. The risk-adjusted net interest margin dropped to 9.5%, down from 10.5%. The numbers gave something to both the bulls and the bears.
Peer trading was still quiet. U.S.-listed Itaú Unibanco rose 1.4% and Santander Brasil gained 1.1%. Nu rallied more than these top Brazilian banks. Investors are still looking at Nubank’s digital push next to conventional banks with longer credit histories.
The buyback doesn’t erase the risks. Rising credit costs in Brazil, a CEO change to Livingston that unsettles investors, or higher spending in the U.S. and Mexico could push Nu to keep its cash instead of finishing the buyback. The plan only gives the green light; it’s not a promise.
Nu shares are moving. It’s not just about CFO risk headlines now. The focus is whether investors believe Nu’s cash is enough for growth and for buybacks.
