XP Inc. (NASDAQ:XP) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of XP Inc. (NASDAQ:XP) have been given an average rating of “Moderate Buy” by the five research firms that are presently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $23.3333.

XP has been the topic of several research analyst reports. UBS Group cut their price objective on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a research report on Wednesday, June 3rd. Weiss Ratings raised XP from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Finally, Zacks Research cut XP from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 1st.

XP Stock Performance

Shares of XP opened at $16.68 on Friday. The company has a current ratio of 6.66, a quick ratio of 6.66 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $8.96 billion, a price-to-earnings ratio of 9.22, a PEG ratio of 0.60 and a beta of 1.10. The stock has a 50 day moving average of $16.45 and a 200 day moving average of $18.29. XP has a 12 month low of $14.80 and a 12 month high of $23.13.

XP Increases Dividend

The business also recently disclosed an annual dividend, which was paid on Thursday, June 18th. Investors of record on Wednesday, June 10th were issued a dividend of $0.20 per share. This represents a yield of 268.0%. This is a boost from XP’s previous annual dividend of $0.18. The ex-dividend date was Wednesday, June 10th. XP’s dividend payout ratio is 22.10%.

XP announced that its board has initiated a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. ARGA Investment Management LP increased its stake in shares of XP by 119.2% during the 4th quarter. ARGA Investment Management LP now owns 19,900,087 shares of the company’s stock worth $325,764,000 after purchasing an additional 10,820,050 shares during the last quarter. Orbis Allan Gray Ltd purchased a new position in XP in the second quarter valued at approximately $161,639,000. Norges Bank purchased a new position in XP in the fourth quarter valued at approximately $80,196,000. AQR Capital Management LLC grew its holdings in XP by 1,433.5% during the second quarter. AQR Capital Management LLC now owns 3,336,183 shares of the company’s stock valued at $67,391,000 after purchasing an additional 3,118,626 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in XP during the fourth quarter valued at $39,145,000. 59.15% of the stock is currently owned by hedge funds and other institutional investors.

About XP

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.