Capital World Investors Sells 2,409,053 Shares of XP Inc. $XP

Capital World Investors lessened its stake in XP Inc. (NASDAQ:XP) by 6.0% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 37,497,038 shares of the company’s stock after selling 2,409,053 shares during the quarter. Capital World Investors owned about 0.07% of XP worth $613,829,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. EverSource Wealth Advisors LLC increased its holdings in XP by 65.4% in the second 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 last quarter. FNY Investment Advisers LLC bought a new stake in XP in the fourth quarter valued at about $34,000. Caitong International Asset Management Co. Ltd increased its holdings in XP by 1,783.3% in the third quarter. Caitong International Asset Management Co. Ltd now owns 2,825 shares of the company’s stock valued at $53,000 after purchasing an additional 2,675 shares during the last quarter. Vestcor Inc bought a new stake in XP in the third quarter valued at about $64,000. Finally, Virtus Advisers LLC bought a new stake in XP in the third quarter valued at about $75,000. Institutional investors own 59.15% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on XP. Zacks Research downgraded XP from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Weiss Ratings upgraded XP from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. Finally, UBS Group dropped their price objective on XP from $28.00 to $25.00 and set a “buy” rating for the company in a report on Wednesday, June 3rd. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $22.75.

XP Price Performance

Shares of XP stock opened at $15.34 on Monday. XP Inc. has a 1 year low of $15.24 and a 1 year high of $23.13. The business has a 50-day moving average of $18.49 and a two-hundred day moving average of $18.65. The company has a market capitalization of $8.24 billion, a P/E ratio of 8.48, a price-to-earnings-growth ratio of 0.49 and a beta of 1.11. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.66 and a quick ratio of 6.66.

XP announced that its Board of Directors has initiated a stock repurchase program on Tuesday, May 19th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

XP Increases Dividend

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

XP 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.