Nu Holdings sees heavy put trading, bearish sentiment

Nu Holdings has seen bearish flow with 3,162 puts trading, or 1.0x expected. Most active are Jul-25 13 puts and Jul-25 12.5 puts, with total volume in those strikes near 1,800 contracts. The Put/Call Ratio is 1.61, while ATM IV is up over 3 points on the day. Earnings are expected on August 14th.

Title: Nu Holdings Ltd. Faces Bearish Options Activity Ahead of Earnings Release

Nu Holdings Ltd. (NU) has recently experienced significant bearish options activity, with 3,162 put contracts traded, representing a volume approximately one times the expected volume [2]. The most active options are the July 2025 puts at strike prices of $13 and $12.5, accounting for nearly 1,800 contracts combined. The Put/Call Ratio stands at 1.61, indicating a preference for puts over calls. Additionally, the at-the-money implied volatility (IV) for NU has risen by more than 3 points during the day [2].

The company's earnings report is expected on August 14, 2025. Analysts project earnings of $0.12 per share, which would represent no growth from the prior-year quarter, and revenue of $3.66 billion, indicating a 28.32% escalation compared to the year-ago quarter [1].

Nu Holdings Ltd. currently has a Forward P/E ratio of 23.98, which is a premium compared to its industry average Forward P/E of 10.06. The company's PEG ratio stands at 0.74, which is lower than the industry average of 0.99 [1].

Wall Street analysts have provided a mixed outlook. The average target price for Nu Holdings Ltd. is $14.00, with a high estimate of $18.90 and a low estimate of $7.70. The average target implies an upside of 7.23% from the current price of $13.06 [2]. The consensus recommendation from 17 brokerage firms is currently "Outperform," with a rating scale ranging from 1 to 5 [2].

GuruFocus estimates that the estimated GF Value for Nu Holdings Ltd. in one year is $30.49, suggesting a potential upside of 133.55% from the current price of $13.055 [2].

References
[1] https://www.nasdaq.com/articles/nu-holdings-ltd-nu-sees-more-significant-dip-broader-market-some-facts-know
[2] https://www.gurufocus.com/news/2972321/nu-holdings-nu-sees-increased-bearish-options-activity-nu-stock-news