XP (NASDAQ:XP) Trading 5.1% Higher – Here’s What Happened

Shares of XP Inc. (NASDAQ:XP) were up 5.1% during mid-day trading on Thursday . The stock traded as high as $19.88 and last traded at $20.0160. 2,030,161 shares traded hands during trading, a decline of 66% from the average session volume of 5,982,065 shares. The stock had previously closed at $19.04.

Analysts Set New Price Targets

Several analysts have 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 price target for the company in a research report on Monday, August 31st. UBS Group cut their price target on shares of XP from $28.00 to $25.00 and set a “buy” rating on the stock in a report on Wednesday, June 3rd. Finally, Weiss Ratings upgraded XP from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, September 2nd. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $23.00.

XP Price Performance

The firm has a market capitalization of $10.75 billion, a PE ratio of 10.45, a PEG ratio of 0.58 and a beta of 1.08. The company has a quick ratio of 4.80, a current ratio of 4.80 and a debt-to-equity ratio of 0.07. The firm’s fifty day simple moving average is $17.06 and its 200-day simple moving average is $17.91.

XP (NASDAQ:XP) last posted its earnings results on Monday, August 17th. The company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.03. The business had revenue of $943.55 million for the quarter, compared to analysts’ expectations of $935.15 million. XP had a net margin of 27.20% and a return on equity of 22.19%. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.46 EPS. On average, research analysts forecast that XP Inc. will post 2.11 earnings per share for the current fiscal year.

XP announced that its board has approved a stock buyback plan on Tuesday, May 19th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On XP

Several hedge funds and other institutional investors have recently modified their holdings of XP. EverSource Wealth Advisors LLC increased its position in XP by 65.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock worth $33,000 after buying an additional 646 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its holdings 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 acquiring an additional 2,675 shares in the last quarter. Parallel Advisors LLC raised its stake in XP by 117.3% during the first quarter. Parallel Advisors LLC now owns 3,288 shares of the company’s stock valued at $63,000 after purchasing an additional 1,775 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in shares of XP during the 4th quarter valued at about $55,000. Finally, Vestcor Inc bought a new stake in shares of XP in the 3rd quarter valued at approximately $64,000. 59.15% of the stock is currently owned by hedge funds and other institutional investors.

XP Company Profile

XP Inc (NASDAQ: XP) is a Brazilian financial services company that operates an investment platform serving individual investors, financial advisors, corporations and institutional clients. Through its platform and affiliated brands, the company provides access to a broad range of financial products and investment solutions.

Its services include brokerage and custody, investment advisory, portfolio management, banking and credit products, insurance, retirement solutions and financial education.