XP (NASDAQ:XP) Reaches New 12-Month Low – Time to Sell?

XP Inc. (NASDAQ:XP) shares reached a new 52-week low during trading on Friday . The company traded as low as $15.46 and last traded at $15.4160, with a volume of 1766263 shares changing hands. The stock had previously closed at $15.64.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on XP shares. UBS Group reduced their price target on shares of XP from $28.00 to $25.00 and set a “buy” rating for the company in a research report on Wednesday. Weiss Ratings upgraded shares of XP from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Finally, Zacks Research lowered shares of XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, XP currently has an average rating of “Moderate Buy” and an average price target of $22.75.

XP Price Performance

The company has a debt-to-equity ratio of 0.02, a current ratio of 6.66 and a quick ratio of 6.66. The firm has a market capitalization of $8.24 billion, a P/E ratio of 8.48, a P/E/G ratio of 0.49 and a beta of 1.11. The firm’s 50 day simple moving average is $18.49 and its two-hundred day simple moving average is $18.65.

XP Increases Dividend

The business also recently declared an annual dividend, which will be paid on Thursday, June 18th. Investors of record on Wednesday, June 10th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Wednesday, June 10th. This is an increase from XP’s previous annual dividend of $0.18. This represents a yield of 115.0%. XP’s payout ratio is currently 9.94%.

XP announced that its Board of Directors has authorized a share buyback program on Tuesday, May 19th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On XP

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of XP by 29.6% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 457,119 shares of the company’s stock valued at $7,396,000 after buying an additional 104,395 shares during the last quarter. Massachusetts Financial Services Co. MA grew its holdings in shares of XP by 11.9% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 12,263,021 shares of the company’s stock valued at $200,746,000 after buying an additional 1,300,982 shares during the last quarter. Pictet Asset Management Holding SA grew its holdings in shares of XP by 11.6% during the fourth quarter. Pictet Asset Management Holding SA now owns 539,486 shares of the company’s stock valued at $8,831,000 after buying an additional 56,090 shares during the last quarter. ARGA Investment Management LP grew its holdings in shares of XP by 119.2% during the fourth quarter. ARGA Investment Management LP now owns 19,900,087 shares of the company’s stock valued at $325,764,000 after buying an additional 10,820,050 shares during the last quarter. Finally, Wealth High Governance Capital Ltda purchased a new stake in shares of XP during the fourth quarter valued at approximately $9,990,000. Hedge funds and other institutional investors own 59.15% of the company’s stock.

XP Company Profile

XP Inc provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.