JPMorgan Chase & Co. Forecasts Strong Price Appreciation for XP (NASDAQ:XP) Stock

Key Points

• JPMorgan raised XP’s price target from $26 to $38 and maintained an “overweight” rating, implying nearly 30% upside from the prior close.
• Analyst sentiment is broadly positive: XP has five Buy ratings and two Hold ratings, with a consensus rating of “Moderate Buy” and an average price target of $26.40.
• XP recently beat quarterly expectations, reporting $0.53 in earnings per share versus $0.50 expected and $943.55 million in revenue; revenue increased 8.3% year over year.

XP (NASDAQ:XP - Get Free Report) had its target price increased by equities research analysts at JPMorgan Chase & Co. from $26.00 to $38.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price points to a potential upside of 29.98% from the stock's previous close.

Several other brokerages also recently issued reports on XP. Citigroup upped their price target on shares of XP from $23.00 to $25.00 and gave the stock a "buy" rating in a report on Tuesday, September 29th. Weiss Ratings upgraded XP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. Finally, Itau BBA Securities upgraded XP from a "market perform" rating to an "outperform" rating and set a $22.00 price target on the stock in a report on Monday, August 31st. Five investment 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 an average target price of $26.40.

XP Price Performance

XP stock traded up $1.09 during midday trading on Tuesday, reaching $29.24. The company's stock had a trading volume of 15,801,497 shares, compared to its average volume of 6,419,600. The company has a current ratio of 4.80, a quick ratio of 4.80 and a debt-to-equity ratio of 0.07. The stock has a market cap of $15.71 billion, a PE ratio of 15.36, a price-to-earnings-growth ratio of 0.57 and a beta of 1.01. XP has a 52 week low of $14.80 and a 52 week high of $29.60. The business has a 50-day moving average price of $18.60 and a 200-day moving average price of $17.96.

XP (NASDAQ:XP - Get Free Report) last posted its quarterly earnings results on Monday, August 17th. The company reported $0.53 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.03. The company had revenue of $943.55 million for the quarter, compared to the consensus estimate of $935.15 million. XP had a net margin of 27.20% and a return on equity of 22.19%. The firm's quarterly revenue was up 8.3% compared to the same quarter last year. During the same period last year, the company posted $2.46 EPS. On average, sell-side analysts predict that XP will post 2.09 EPS for the current year.

Insider Buying and Selling at XP

In other news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of XP stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total value of $2,413,372.06. Following the completion of the transaction, the director directly owned 1,500,000 shares of the company's stock, valued at approximately $29,370,000. This trade represents a 7.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link.

Institutional Investors Weigh In On XP

A number of hedge funds have recently added to or reduced their stakes in XP. EverSource Wealth Advisors LLC lifted its position in XP by 46.2% during the first quarter. EverSource Wealth Advisors LLC now owns 2,471 shares of the company's stock valued at $47,000 after purchasing an additional 781 shares during the last quarter. Inspire Investing LLC raised its position in shares of XP by 1.0% during the 1st quarter. Inspire Investing LLC now owns 89,121 shares of the company's stock valued at $1,697,000 after buying an additional 906 shares in the last quarter. Parallel Advisors LLC lifted its holdings in shares of XP by 117.3% in the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company's stock valued at $63,000 after acquiring an additional 1,775 shares during the last quarter. Drucker Wealth 3.0 LLC grew its position in XP by 7.4% in the first quarter. Drucker Wealth 3.0 LLC now owns 36,176 shares of the company's stock worth $689,000 after acquiring an additional 2,507 shares in the last quarter. Finally, NFJ Investment Group LLC increased its stake in XP by 4.9% during the fourth quarter. NFJ Investment Group LLC now owns 53,884 shares of the company's stock worth $882,000 after acquiring an additional 2,539 shares during the last quarter. 59.15% of the stock is currently owned by institutional investors.

About XP

XP Inc is a Brazil-based financial services platform that provides investment, banking and related financial products to individuals, businesses and institutional clients. Through its digital platforms and network of financial professionals, the company offers access to investments such as stocks, bonds, mutual funds, exchange-traded funds, real estate funds, retirement products and insurance.

The company operates a portfolio of brands that includes XP, Rico and Clear, serving customers with different investment needs and levels of experience.

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