XP (NASDAQ:XP) Stock Price Target Lowered at The Goldman Sachs Group

Key Points

• Goldman Sachs lowered its price target on XP from $36 to $31 but maintained a Buy rating; the new target implies 106.6% upside from the share price cited in the report.
• Analyst views remain generally positive: XP has a consensus “Moderate Buy” rating and an average price target of $24.86, with five Buy and five Hold ratings.
• In its latest reported quarter, XP posted EPS of $0.53, above the $0.50 consensus, and revenue of $943.55 million, up 8.3% year over year.

XP (NASDAQ:XP - Get Free Report) had its price target dropped by equities researchers at The Goldman Sachs Group from $36.00 to $31.00 in a report released on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. The Goldman Sachs Group's price target would indicate a potential upside of 106.60% from the company's current price.

Several other equities research analysts also recently weighed in on the stock. Itau BBA Securities raised shares of XP from a "market perform" rating to an "outperform" rating and set a $22.00 price objective for the company in a report on Monday, August 31st. UBS Group lowered their target price on shares of XP from $37.00 to $23.00 and set a "buy" rating on the stock in a research note on Thursday, November 5th. Weiss Ratings upgraded shares of XP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. Morgan Stanley set a $23.00 price target on shares of XP in a research note on Thursday, October 29th. Finally, Santander cut shares of XP to a "neutral" rating in a report on Thursday, October 29th. Five analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $24.86.

XP Stock Performance

Shares of NASDAQ XP traded down $0.39 during midday trading on Thursday, hitting $15.01. 3,224,545 shares of the company's stock were exchanged, compared to its average volume of 7,876,462. The company has a debt-to-equity ratio of 0.07, a current ratio of 4.80 and a quick ratio of 4.80. The stock's 50 day moving average price is $21.95 and its 200-day moving average price is $19.07. The firm has a market cap of $8.06 billion, a P/E ratio of 7.87, a PEG ratio of 0.34 and a beta of 1.18. XP has a twelve month low of $13.78 and a twelve month high of $32.73.

XP (NASDAQ:XP - Get Free Report) last posted its earnings results on Monday, August 17th. The company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.50 by $0.03. XP had a return on equity of 22.19% and a net margin of 27.20%. The firm had revenue of $943.55 million for the quarter, compared to analysts' expectations of $935.15 million. During the same period last year, the firm earned $2.46 EPS. The firm's revenue was up 8.3% compared to the same quarter last year. Equities research analysts anticipate that XP will post 2.08 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 the firm's stock in a transaction on 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 $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 available through this link.

Institutional Investors Weigh In On XP

Institutional investors and hedge funds have recently modified their holdings of the stock. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in XP in the 1st quarter worth about $3,071,000. Ninety One UK Ltd lifted 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 valued at $209,165,000 after buying an additional 1,904,034 shares in the last quarter. Gimbal Financial purchased a new stake in XP during the third quarter valued at about $9,109,000. Lazard Asset Management LLC boosted its holdings in shares of XP by 244.9% in the first quarter. Lazard Asset Management LLC now owns 206,689 shares of the company's stock worth $3,935,000 after buying an additional 146,763 shares during the period. Finally, National Pension Service boosted its holdings in shares of XP by 94.1% in the second quarter. National Pension Service now owns 207,699 shares of the company's stock worth $3,377,000 after buying an additional 100,677 shares during the period. 59.15% of the stock is owned by institutional investors and hedge funds.

About XP

XP Inc. is a Brazil-based financial services company that operates a digital investment platform. It offers individuals and businesses access to investment products and services, including brokerage, investment advice and wealth management. The company has expanded beyond investing into banking, credit, insurance and asset management. Its businesses include the XP, Rico and Clear platforms, which serve customers with different investment needs and preferences. Founded in 2001 as an investment advisory business, XP has grown into a broad financial services provider focused primarily on the Brazilian market.

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