Entropy Technologies LP Makes New $1.05 Million Investment in XP Inc. $XP

Entropy Technologies LP purchased a new stake in XP Inc. (NASDAQ:XP) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 55,435 shares of the company’s stock, valued at approximately $1,055,000.

Several other institutional investors have also modified their holdings of the business. ARGA Investment Management LP increased its position in shares of XP by 4.0% during the first quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company’s stock worth $394,112,000 after acquiring an additional 799,048 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in XP by 11.9% in 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 purchasing an additional 1,300,982 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in XP by 10.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 11,799,175 shares of the company’s stock valued at $193,152,000 after purchasing an additional 1,160,977 shares during the period. State Street Corp grew its stake in XP by 1.3% during the 2nd quarter. State Street Corp now owns 9,696,864 shares of the company’s stock worth $195,877,000 after purchasing an additional 125,818 shares in the last quarter. Finally, Morgan Stanley grew its stake in XP by 13.2% during the 4th quarter. Morgan Stanley now owns 9,524,277 shares of the company’s stock worth $155,912,000 after purchasing an additional 1,113,641 shares in the last quarter. Institutional investors and hedge funds own 59.15% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. UBS Group cut their price target on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a report on Wednesday, June 3rd. Zacks Research downgraded XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Finally, Weiss Ratings upgraded shares of XP from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $23.33.

XP Price Performance

XP stock opened at $16.74 on Tuesday. The stock has a market cap of $9.00 billion, a P/E ratio of 9.25, a price-to-earnings-growth ratio of 0.59 and a beta of 1.10. The company has a fifty day simple moving average of $16.29 and a 200-day simple moving average of $18.30. XP Inc. has a 12-month low of $14.80 and a 12-month high of $23.13. The company has a current ratio of 6.66, a quick ratio of 6.66 and a debt-to-equity ratio of 0.02.

XP declared that its board has initiated a stock buyback program on Tuesday, May 19th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

XP Increases Dividend

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

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.