NU Holdings

NU

15.3300.26% ( -0.040 )

Closed: Sep 8, 15:59:57 (EDT)

2026-W362026-08-31

NU.US Weekly Report · 2026-W36

NU rallied 5.64% this week, closing at $15.37, with technical golden cross confirming an uptrend. Q2 earnings showcased robust growth—EPS jumped 66% YoY and net profit crossed $1 billion for the first time, while an Investor Day announcement is confirmed. Notably, capital flows showed mild outflows despite cheap valuation and strong fundamentals, signaling a possible mismatch between institutional interest and fund positioning.

Price Action

The stock rose from last week’s close of $14.55 to $15.37, a weekly gain of 5.64%. Weekly volatility was pronounced with highs at $15.84 (Sep 3) and lows at $14.43 (Sep 1), representing an 9.81% range. Volume surged notably during Sep 2-3, with Sep 3 turnover exceeding $1.27 billion—well above typical levels—indicating strong conviction behind the move. Technically, Sep 1-2 formed two consecutive strong bullish candles breaking through the $15 level; Sep 3 hit weekly highs before Sep 4 showed profit-taking with a higher open then lower close, suggesting consolidation within an ongoing uptrend.

Valuation and Earnings

Current P/B stands at 5.64x, placing it at the 2.73rd percentile over the past three years—the cheapest level on record. This means 89.8% of historical trading periods priced the stock higher relative to book value. P/E of 20.71x maintains reasonable premium to the industry median for diversified banking.

Profitability remains impressive. Q2 2026 EPS reached $0.2162, up 66.31% YoY; operating revenue hit $2.474 billion, +52.15% YoY; net profit surged to $1.060 billion, +66.48% YoY, setting a quarterly record. ROE of 32.83% continues to exceed 30%, a hallmark of quality returns. Against consensus EPS guidance (median forecast $1.00), there remains room for upside surprises. TTM EPS of $0.74 reflects a consistent quarter-over-quarter improvement trajectory.

Capital Flows

As of Sep 4, capital flows showed mild net outflows. Large funds net outflow of 66.40 (outflow 837.22 vs inflow 770.82); mid-size funds outflow of 33.73 (outflow 3,967.37 vs inflow 4,001.10); retail outflow of 226.01 (outflow 1,871.75 vs inflow 1,645.74). All investor segments reduced positions slightly—an unexpected divergence given rising price, improved fundamentals, and cheap valuation. This creates a subtle tension worth monitoring.

Institutional View

Current ratings show 18 buy-equivalent recommendations (13 strong buy, 5 buy), 3 hold, and 0 sell among 21 rating firms. Consensus price target: $18.78, implying ~22% upside from current $15.37. Most recent rating updates dated Sep 2. Worth noting: recent insider selling by CEO and Chief Risk Officer (multi-million dollar disposals weeks prior) may reflect profit-taking on sharp moves rather than fundamental skepticism, standing in apparent contrast to bullish institutional consensus.

Weekly News Highlights

Summary

Price action, valuation, and earnings align positively: +5.64% weekly rally, technical reversal confirmed, P/B at record lows, earnings growth exceeding 60% YoY, and broad institutional buy ratings. The mild capital outflows present a subtle counter-signal, possibly reflecting market digestion of news or tactical profit-taking. Insider selling is best interpreted as gains realization rather than conviction loss. The confirmed Investor Day in December stands as a key catalyst for tracking further analyst revisions and institutional positioning shifts.