SÃO PAULO, June 7, 2026, 15:02 (BRT)
- Nu ended Friday at $11.97, slipping 1.24% on the session and finishing the week off 8.83%.
- Nu’s board signed off on a plan to buy back as much as $1 billion in Class A shares over the next year, kicking off June 4.
- Rob Livingston, who used to run finance for Visa North America, will step in as CFO on July 13, replacing Guilherme Lago. Lago shifts to a special adviser job.
Nu Holdings Ltd. enters Monday’s U.S. trading armed with a $1 billion buyback plan but still carrying a steep weekly drop. Investors are weighing the Brazilian digital bank’s move to return capital along with the finance chief switch and renewed credit cost worries.
Nu ended Friday at $11.97, off 17.33% for the month and 28.49% lower in 2024. The New York Stock Exchange is closed Sunday; the regular session runs from 9:30 a.m. to 4 p.m. Eastern. Friday’s close stands as the last U.S. market price.
Nu had a full week. The company said Monday the CFO would change, and by Tuesday and Wednesday, analysts cut ratings. Then Nu dropped the buyback announcement, which can point to management seeing shares as undervalued. A share buyback is when a company repurchases its own stock. Canceling those shares can lower the total count.
The board has signed off on a buyback plan for up to $1 billion of Class A shares through June 3, 2027. Nu said there are no changes to growth investment plans in Brazil, Mexico, Colombia or the U.S., and regulatory capital buffers will stay in place under the program.
Chief Executive David Vélez called the management switch a move for stability. “Our priorities are unchanged,” he said, noting growth in core markets, artificial intelligence, and controlled international expansion. Incoming CFO Livingston said he aims to “optimize capital allocation” and back Nu’s next growth phase. Nu International
BofA Securities downgraded Nu to Underperform from Neutral and slashed its price target to $10 from $16 after the CFO announcement. Susquehanna cut its rating on Nu to Neutral from Positive and dropped its target to $13 from $18, pointing to slimmer margins and higher loss provisions. James Friedman covers the stock for Susquehanna.
Friedman said Nu’s operating margin dropped 760 basis points to 19.2% in the first quarter. That’s a 7.6 percentage point drop. He linked the margin hit to more growth in credit cards, unsecured lending, and expansion in Mexico and the U.S.
Nu’s first-quarter results landed with material for both optimists and skeptics. Vélez called the figures “another strong quarter” as the company topped 135 million customers and quarterly revenue crossed $5 billion for the first time. Net income hit $871 million. Return on equity was at 29%. Nu International
Nu’s credit portfolio came under pressure. The 15-to-90 day non-performing loan ratio went up to 5.0% from the previous quarter, with credit loss allowances jumping 33% quarter-on-quarter to $1.79 billion. Risk-adjusted net interest margin slipped to 9.5% from 10.5%.
Broad U.S. markets did no favors. Wall Street closed with steep losses Friday, the Nasdaq dropping 4.18%, S&P 500 down 2.64%, as hotter U.S. jobs data raised bets rates will stay high. In New York, leading Brazilian banks eased: Itaú Unibanco ADRs slid 1.3% and Banco Bradesco’s dipped 0.9%.
Nu still leans on its size. The company said customer numbers topped 115 million in Brazil, passed 15 million in Mexico, and neared 5 million in Colombia. Management said Mexico hit break-even. Any U.S. growth will stay measured and focus on capital efficiency.
But Nu’s buyback doesn’t guarantee support for the stock. The filing notes the purchases aren’t required, could shift with the market or other investments, and may pause or end. If credit losses rise, margins get tighter, or investors see the U.S. plans needing more capital, the repurchase might not move the debate much.
Looking to the week ahead, it’s all about Nu and its 52-week low at $11.20. Traders will watch if the stock can stay above that level, if the buyback brings in any real buying, and how the market takes the CFO news—routine housekeeping or something bigger. Right now, the price action is putting the pressure back on the company.
