Nu Holdings Rises 0.37% as Trading Volume Slides to 82nd Rank Amid Bullish Analyst Upgrades and Diverging Institutional Bets

Nu Holdings (NU) traded up 0.37% on August 21, 2025, with a daily trading volume of $0.80 billion, marking a 29.19% decline from the previous day’s activity. The stock ranked 82nd in trading volume for the session, reflecting mixed institutional and analyst sentiment ahead of broader market moves.

Institutional investors showed diverging strategies in the first quarter, with JT Stratford LLC increasing its stake by 13.4% to 201,334 shares, while Northwest & Ethical Investments L.P. reduced holdings by 22.3% after selling 51,918 shares. Other major investors, including Barclays PLC and Guggenheim Capital LLC, raised their positions by double digits, with Barclays now holding 1.11 million shares valued at $11.5 million. These shifts highlight ongoing strategic recalibrations amid evolving market conditions.

Analyst coverage remained bullish, with multiple firms upgrading NU’s price targets. Rothschild Redburn reiterated a “Buy” rating at $18.00, citing untapped monetization potential in Mexico, where new CEO Armando Herrera’s leadership is seen as a catalyst for margin expansion. Susquehanna, Itau BBA, and Morgan Stanley also raised targets to $15–$16, reinforcing confidence in Nu’s digital banking model. The stock’s 31.47% year-to-date return and $63.3 billion market cap underscore its appeal as a high-growth fintech play.

Financial results for Q2 2025 showed resilience, with $3.7 billion in revenue and $637 million in net income, exceeding analyst expectations. Nu’s 17.9% net margin and 31.42% return on equity highlight operational efficiency, while expanding loan growth and underutilized card portfolios in Mexico signal room for future scaling. Analysts remain focused on the company’s ability to balance aggressive monetization with customer acquisition in key markets.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 1.98%, with a total return of 7.61% over 365 days. The strategy's Sharpe ratio was 0.94, indicating good risk-adjusted returns. However, the maximum drawdown of -29.16% shows the strategy's vulnerability during market downturns.