XP (NASDAQ:XP) Stock Gets Price Target Trim from UBS Group

Key Points

• UBS cut its price target on XP from $37 to $23 but maintained a Buy rating; the new target implies 55.62% upside from the current share price.
• Analyst sentiment is mixed: four analysts rate XP Buy and five rate it Hold, resulting in a consensus Hold rating and an average target price of $23.83.
• XP reported quarterly EPS of $0.53, beating the $0.50 estimate, while revenue of $943.55 million also exceeded forecasts and rose 8.3% year over year.

XP (NASDAQ:XP - Get Free Report) had its target price cut by investment analysts at UBS Group from $37.00 to $23.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's target price suggests a potential upside of 55.62% from the stock's current price.

Other equities analysts also recently issued reports about the stock. Santander downgraded shares of XP to a "neutral" rating in a report on Thursday, October 29th. Itau BBA Securities upgraded XP from a "market perform" rating to an "outperform" rating and set a $22.00 price objective on the stock in a research report on Monday, August 31st. JPMorgan Chase & Co. boosted their price objective on XP from $26.00 to $38.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 6th. Morgan Stanley set a $23.00 target price on XP in a research note on Thursday, October 29th. Finally, Citigroup lowered XP from a "buy" rating to a "neutral" rating and reduced their price target for the stock from $25.00 to $15.00 in a report on Tuesday, October 27th. Four investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $23.83.

XP Stock Down 2.6%

Shares of XP stock opened at $14.78 on Thursday. XP has a twelve month low of $13.78 and a twelve month high of $32.73. The stock has a market cap of $7.94 billion, a P/E ratio of 7.74, a P/E/G ratio of 0.35 and a beta of 1.18. The stock has a 50 day moving average of $22.18 and a 200 day moving average of $19.15. The company has a current ratio of 4.80, a quick ratio of 4.80 and a debt-to-equity ratio of 0.07.

XP (NASDAQ:XP - Get Free Report) last released its quarterly earnings data on Monday, August 17th. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.50 by $0.03. The business had revenue of $943.55 million for the quarter, compared to analyst estimates of $935.15 million. XP had a return on equity of 22.19% and a net margin of 27.20%. The business's quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.46 EPS. As a group, sell-side analysts expect that XP will post 2.08 EPS for the current year.

Insider Activity

In related news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the firm's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total transaction of $2,413,372.06. Following the completion of the sale, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. ARGA Investment Management LP boosted its holdings in XP by 10.2% during the 3rd quarter. ARGA Investment Management LP now owns 27,163,927 shares of the company's stock valued at $570,307,000 after acquiring an additional 2,520,545 shares during the period. Ninety One UK Ltd increased its stake in XP by 23.6% during the third quarter. Ninety One UK Ltd now owns 9,962,623 shares of the company's stock worth $209,165,000 after purchasing an additional 1,904,034 shares during the period. Bank of America Corp DE lifted its position in shares of XP by 33.4% during the first quarter. Bank of America Corp DE now owns 5,147,245 shares of the company's stock worth $98,004,000 after purchasing an additional 1,289,393 shares in the last quarter. Hsbc Holdings PLC lifted its position in shares of XP by 876.6% during the first quarter. Hsbc Holdings PLC now owns 1,062,720 shares of the company's stock worth $20,179,000 after purchasing an additional 953,902 shares in the last quarter. Finally, Aware Super Pty Ltd as trustee of Aware Super acquired a new stake in shares of XP during the first quarter worth about $15,184,000. Hedge funds and other institutional investors own 59.15% of the company's stock.

XP Company Profile

XP Inc is a Brazilian financial services company that operates a technology-driven investment and financial products platform. Through its digital channels and network of advisors, the company offers access to products including stocks, bonds, investment funds, exchange-traded funds, insurance and retirement products. It serves individual investors, businesses, institutional clients and independent financial advisors.

The company's principal brands and businesses include XP, Rico and Clear, which provide brokerage and investment services to different customer segments.

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