XP (NASDAQ:XP) Stock Price Up 4.2% – What’s Next?

XP Inc. (NASDAQ:XP)’s stock price shot up 4.2% during trading on Monday . The stock traded as high as $18.58 and last traded at $18.41. Approximately 1,886,332 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 5,847,335 shares. The stock had previously closed at $17.66.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on XP shares. Itau BBA Securities upgraded shares of XP from a “market perform” rating to an “outperform” rating and set a $22.00 target price for the company in a research note on Monday. UBS Group decreased their price target on shares of XP from $28.00 to $25.00 and set a “buy” rating on the stock in a research note on Wednesday, June 3rd. Finally, Weiss Ratings lowered shares of XP from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 18th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $23.00.

XP Stock Performance

The company has a fifty day moving average of $16.61 and a two-hundred day moving average of $17.92. The firm has a market capitalization of $10.06 billion, a price-to-earnings ratio of 9.80, a PEG ratio of 0.53 and a beta of 1.08. The company has a debt-to-equity ratio of 0.07, a quick ratio of 4.80 and a current ratio of 4.80.

XP (NASDAQ:XP) last issued its quarterly earnings data on Monday, August 17th. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.50 by $0.03. XP had a return on equity of 22.19% and a net margin of 27.20%.The firm had revenue of $943.55 million for the quarter, compared to analyst estimates of $935.15 million. During the same period in the prior year, the firm posted $2.46 EPS. The company’s revenue for the quarter was up 8.3% on a year-over-year basis. As a group, equities research analysts predict that XP Inc. will post 2.11 earnings per share for the current fiscal year.

XP announced that its Board of Directors has initiated a share buyback plan on Tuesday, May 19th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On XP

A number of hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its holdings in XP by 65.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock valued at $33,000 after purchasing an additional 646 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of XP by 1,783.3% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,825 shares of the company’s stock worth $53,000 after purchasing an additional 2,675 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new position in shares of XP during the fourth quarter worth approximately $55,000. Parallel Advisors LLC increased its holdings in shares of XP by 117.3% during the first quarter. Parallel Advisors LLC now owns 3,288 shares of the company’s stock worth $63,000 after purchasing an additional 1,775 shares during the period. Finally, Vestcor Inc bought a new position in shares of XP during the third quarter worth approximately $64,000. 59.15% of the stock is owned by institutional investors.

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.