Nu Holdings (NU) slides as investors digest Q4 results and focus on credit-risk and margin signals

Nu Holdings Ltd. (NU) is down 8.4% today. Here is some analysis on what might have caused this price movement.

Analysis: The drop appears tied to an earnings-driven “sell-the-news” reaction after Nu released Q4 and full-year 2025 results after the prior close. Despite strong top-line growth and record profitability, investors seemed to focus on forward-looking risk and profitability signals, including credit-loss/coverage metrics and margin-related items that can affect 2026 expectations.

Details:

Nu reported Q4 2025 revenue around $4.9 billion and net income of about $895 million, alongside a customer base of roughly 131 million across its core markets.

The company disclosed risk and asset-quality indicators (including NPL measures and coverage ratios) that investors often scrutinize when assessing whether rapid loan growth could bring higher future credit costs.

Nu highlighted that risk-adjusted net interest margin was 10.5% in Q4, with an identified one-off sector contribution in Mexico that can complicate quarter-to-quarter margin comparisons.

Even with an EPS and revenue beat versus consensus estimates, the market’s reaction suggests positioning was already optimistic going into the print, making any perceived “less perfect” items a catalyst for profit-taking.

Sources:

Business Wire, MarketBeat, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$NU Hedge Fund Activity

We have seen 484 institutional investors add shares of $NU stock to their portfolio, and 381 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

SC US (TTGP), LTD. removed 72,785,016 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $1,165,288,106
UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 58,177,257 shares (-73.6%) from their portfolio in Q4 2025, for an estimated $973,887,282
ORBIS ALLAN GRAY LTD removed 23,372,828 shares (-85.6%) from their portfolio in Q4 2025, for an estimated $391,261,140
CAPITAL RESEARCH GLOBAL INVESTORS removed 20,507,942 shares (-11.1%) from their portfolio in Q4 2025, for an estimated $343,302,949
JENNISON ASSOCIATES LLC added 17,809,644 shares (+82.6%) to their portfolio in Q4 2025, for an estimated $298,133,440
ATMOS CAPITAL GESTAO DE RECURSOS LTDA. added 15,552,726 shares (+109.1%) to their portfolio in Q4 2025, for an estimated $260,352,633
ALTA PARK CAPITAL, LP removed 14,772,344 shares (-81.4%) from their portfolio in Q4 2025, for an estimated $247,289,038

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$NU Analyst Ratings

Wall Street analysts have issued reports on $NU in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

JP Morgan issued a "Overweight" rating on 11/20/2025
Keybanc issued a "Overweight" rating on 11/14/2025
Susquehanna issued a "Positive" rating on 11/14/2025

To track analyst ratings and price targets for $NU, check out Quiver Quantitative's $NU forecast page.

$NU Price Targets

Multiple analysts have issued price targets for $NU recently. We have seen 5 analysts offer price targets for $NU in the last 6 months, with a median target of $18.4.

Here are some recent targets:

James Friedman from Susquehanna set a target price of $22.0 on 01/27/2026
Thiago Batista from UBS set a target price of $18.4 on 12/04/2025
Yuri Fernandes from JP Morgan set a target price of $18.0 on 11/20/2025
Alex Markgraff from Keybanc set a target price of $19.0 on 11/14/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.