The stock fell by as much as 8.6% during New York trading, marking the largest intra-day decline since April, Bloomberg reported Thursday (Aug. 17).
Despite this drop, Nubank’s shares have still seen a 73% increase year-to-date, reflecting the bank’s robust growth, according to the report.
Velez, who co-founded Nubank, said he sold 3% of his shares in the company for general portfolio management reasons, per the report. This is his first sale since Nubank’s initial public offering in 2021. Velez stated that the proceeds from the sale would be used to fund the growth of his philanthropic foundation, VelezReyes+.
Velez expressed confidence in Nubank’s performance, emphasizing the bank’s ability to generate profits and sustain growth over the past three quarters, according to the report.
Another co-founder of Nubank, Cristina Junqueira, also sold shares earlier this year, the report said.
Despite these sales, Nubank continues to receive positive recommendations from analysts, with 11 buy recommendations, 6 holds, and 2 sells, per the report.
In other recent news around Nubank, the company partnered with travel booking platform Hopper in July to enable a travel portal within Nubank’s shopping platform. The portal is to launch next year, and it marks Nubank’s first foray into the travel space as customers search for travel-related deals.
Also in July, the digital bank said it surpassed 80 million customers in Brazil as of that time. All told, factoring in Mexico and Colombia, the company had reached 85 million customers across Latin America by the time of that announcement.
Earlier that month, Nubank partnered with EBANX to offer an alternative payment method for international purchases: NuPay, developed by Nubank. This partnership will allow more than 1,600 of EBANX’s global merchants to offer NuPay as a payment method for their customers.
“Through this integration, large global brands will be able to offer this payment method to their consumers in Brazil, expanding the opportunity to take NuPay as a recurring and automatic payment method to other online services, such as those that require a subscription,” Livia Chanes, leader of Nubank’s operations in Brazil, said at the time.