New York, June 11, 2026, 08:02 ET
- Nu Holdings ended Wednesday at $11.62, sliding 2.19%. Shares then edged up in early pre-market trading.
- The stock remains close to its 52-week low after analysts cut ratings, citing margin pressure, higher credit costs, and the change in CFO.
- Investors are looking to see if the fresh $1 billion share buyback plan will be enough to ease concerns over quicker credit growth.
Nu Holdings Ltd. is struggling to steady. Shares of the Nubank parent ended Wednesday at $11.62, off 2.19%. In pre-market trade on Thursday, NU ticked up a bit, a small lift but the stock is still hovering near its 52-week low after stumbling at the start of June. For investors, the question has moved past growth. Now it’s about whether Nu can keep pushing credit in Brazil and Mexico without sacrificing too much margin.
Buyback offers support. Nu told the SEC last week its board signed off on a repurchase of as much as $1 billion in Class A shares for the 12 months from June 4, 2026, through June 3, 2027. A buyback means the company is spending cash to buy its own stock, which can shrink share count or signal management confidence in the shares. Nu said it might buy in the open market, through derivatives, or in private deals.
The stock climbed 4.12% after that announcement on June 4, but didn’t keep those gains for long. Nu ended the buyback day at $12.12, dipped to $11.97 on June 5, then slid to $11.60 by June 8, came back up to $11.88 on June 9, and then dropped again Wednesday. The up-and-down trading is why today’s move has investors paying close attention. The buyback is getting a nod, but not a full vote of confidence.
Nu is still touting rapid operating growth. In Q1, the company reported over 135 million customers as of March, with more than 115 million in Brazil and 15 million-plus in Mexico. Revenue topped $5 billion for the first time. Net income hit $871 million. Return on equity came in at 29%.
Nu’s stock isn’t trading like a straight growth play because of credit risk. Its 15-to-90-day non-performing loan ratio — early signs of loan trouble — climbed to 5.0% in the first quarter, up 89 basis points from the last quarter. One basis point equals one-hundredth of a percent. Credit loss allowances jumped 33% from the previous quarter to $1.79 billion. That hit risk-adjusted net interest margin, now at 9.5% compared with 10.5%.
Analysts have zeroed in on the same trouble spot. Susquehanna cut Nu to Neutral from Positive and dropped its price target to $13 from $18, pointing to a 760 bps fall in operating margins to 19.2% last quarter and warning of a more intense investment phase ahead. BofA Securities also moved the stock down, slashing its rating to Underperform from Neutral and lowering its target to $10 from $16 after the CFO change, TipRanks said.
Leadership moves are in focus as Nubank said Rob Livingston, ex-Visa North America CFO, will take over as chief financial officer on July 13. He steps in for Guilherme Lago, who shifts to a special adviser job and will help with the transition until August 31. Livingston’s job will cover capital and liquidity planning, financial reporting, corporate development, tax and investor relations.
Chief Executive David Velez is stressing continuity instead of a new direction. “Our priorities, growth in our core markets, reshaping Nubank around AI, and disciplined international expansion, are unchanged,” Velez said in the company’s statement. Business Wire
Nu is making a bigger push. The company says it’s growing in Mexico, with first-quarter Mexico operations now at break-even. Nearly 5 million customers in Colombia. Nu is also testing the waters in the U.S., but management told investors any additional investment there hinges on clear proof of product-market fit and a track to profits. Market is watching for more evidence.
Bullish signals are in the numbers. Deposits hit $42.4 billion in Q1, up 22% from a year ago, and the credit portfolio jumped 40% to $37.2 billion. The loan-to-deposit ratio moved to 58.3%, so Nu is putting more of its deposit base to work. That can lift earnings as long as credit quality stays stable.
The risk is just as clear. A weaker credit market in Brazil, heavier losses from unsecured lending, or if expansion in Mexico, Colombia, and the U.S. gets pricier, then the buyback may fall short of shifting sentiment. Nu said in its SEC filing that the repurchase plan doesn’t force it to buy a set number of shares. The company can pause, change or stop the plan at any time.
The next catalyst looks less tied to the buyback news and more to how the company delivers. Investors want to see if credit loss allowances slow down and don’t outpace revenue. They’ll also watch for any signals from Livingston when he steps in as CFO on July 13.
