XP Inc. (NASDAQ:XP) Stock Rated “Moderate Buy” by Sell-Side Brokerages

Shares of XP Inc. (NASDAQ:XP) have received a consensus recommendation of “Moderate Buy” from the seven analysts that are currently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $26.40.

A number of equities analysts have recently commented on XP shares. Weiss Ratings upgraded shares of XP from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, September 2nd. JPMorgan Chase & Co. upped their target price on XP from $26.00 to $38.00 and gave the stock an “overweight” rating in a report on Tuesday. Citigroup increased their price target on XP from $23.00 to $25.00 and gave the company a “buy” rating in a research report on Tuesday, September 29th. Finally, Itau BBA Securities raised XP from a “market perform” rating to an “outperform” rating and set a $22.00 price target on the stock in a research report on Monday, August 31st.

XP Price Performance

Shares of XP opened at $29.73 on Wednesday. The company has a quick ratio of 4.80, a current ratio of 4.80 and a debt-to-equity ratio of 0.07. XP has a twelve month low of $14.80 and a twelve month high of $29.77. The stock has a market capitalization of $15.98 billion, a P/E ratio of 15.57, a P/E/G ratio of 0.75 and a beta of 1.01. The company has a 50 day moving average of $18.85 and a 200-day moving average of $18.03.

XP (NASDAQ:XP) last announced its quarterly earnings data on Monday, August 17th. The company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.03. XP had a net margin of 27.20% and a return on equity of 22.19%. The business had revenue of $943.55 million for the quarter, compared to analyst estimates of $935.15 million. During the same quarter in the previous year, the firm posted $2.46 earnings per share. The firm’s revenue for the quarter was up 8.3% on a year-over-year basis. As a group, equities research analysts forecast that XP will post 2.09 EPS for the current fiscal year.

Insider Activity at XP

In related news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the firm’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $19.58, for a total value of $2,413,372.06. Following the completion of the transaction, the director directly owned 1,500,000 shares of the company’s stock, valued at approximately $29,370,000. This trade represents a 7.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Institutional Trading of XP

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. ARGA Investment Management LP grew its position in shares of XP by 4.0% in the 1st quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company’s stock valued at $394,112,000 after acquiring an additional 799,048 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in shares of XP by 10.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 11,799,175 shares of the company’s stock valued at $193,152,000 after purchasing an additional 1,160,977 shares during the period. Bank of America Corp DE lifted its stake in XP by 33.4% in the 1st quarter. Bank of America Corp DE now owns 5,147,245 shares of the company’s stock valued at $98,004,000 after purchasing an additional 1,289,393 shares during the last quarter. Norges Bank acquired a new stake in XP in the 4th quarter valued at about $80,196,000. Finally, Geode Capital Management LLC grew its holdings in XP by 4.4% during the fourth quarter. Geode Capital Management LLC now owns 4,866,728 shares of the company’s stock worth $79,285,000 after purchasing an additional 204,524 shares during the period. 59.15% of the stock is owned by institutional investors.

XP Company Profile

XP Inc is a Brazil-based financial services platform that provides investment, banking and related financial products to individuals, businesses and institutional clients. Through its digital platforms and network of financial professionals, the company offers access to investments such as stocks, bonds, mutual funds, exchange-traded funds, real estate funds, retirement products and insurance.

The company operates a portfolio of brands that includes XP, Rico and Clear, serving customers with different investment needs and levels of experience.