Short sellers have quietly exited NU over the past two weeks. Retail traders have piled in at precisely the wrong moment. The gap between those two movements is the story.
Short interest in Nu Holdings fell 19.8% over the past week to 3.27% of free float. That is down from a peak of roughly 159 million shares in mid-September. The selldown has been consistent across every session since September 22.
Availability in the lending market has expanded sharply in parallel. Shares available to borrow now stand at 1,796% of estimated short interest, meaning lenders are sitting on roughly 18 times more supply than has been borrowed. That is the loosest the borrow market has been since late August, when availability exceeded 2,000%.
Cost to borrow doubled over the week to 0.46%, but that headline number overstates the squeeze. At 0.46%, borrowing NU remains cheap by any standard. The 52-week peak availability low was 1,306%, recorded September 18, the same day short interest hit its recent high. Since then, lenders have added supply steadily as short sellers have returned shares.
The ORTEX short score sits at 34.2, down from 37.2 on September 18. Lower readings indicate less bearish positioning pressure.
The alt data tells a contrasting story. Wikipedia page views and ORTEX stock page traffic for NU combined to a z-score of 4.26 against the company's own 90-day history as of September 27. That is retail attention running 4.3 standard deviations above its recent norm.
The timing is notable. The stock is down 8.7% over the past month and off about 27% year to date. Retail attention at this level tends to reflect reactive interest rather than anticipatory positioning, viewers arriving after the move, not before.
The consensus sits at buy, but the recent action is mixed. Itau BBA downgraded NU to Market Perform on September 16, cutting its target from $20 to $18. Needham's Kyle Peterson reiterated his Buy rating at a $19 target on September 28. The stock closed at $13.29 on October 1, leaving material distance to even the more cautious targets.
Capital Research and Management added 20.4 million shares in the period to August 31. JP Morgan Asset Management added 13.1 million. BlackRock added 15.1 million. These are meaningful additions from large institutional holders, running against the direction of recent price action.
Earnings are scheduled for November 12, 41 days out.
See the live data behind this article on ORTEX.
Open NU on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
