XP Inc. (NASDAQ:XP) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• XP has a “Moderate Buy” consensus from six analysts, with four buy ratings and two holds. The average 12-month price target is $23.50, above the reported $20.27 opening price.
• XP exceeded quarterly expectations, reporting $0.53 EPS versus a $0.50 consensus and revenue of $943.55 million versus $935.15 million expected. Revenue increased 8.3% year over year, while net margin was 27.2%.
• Institutional investors own 59.15% of XP, although director Bruno Constantino Alexandre dos Santos sold 123,257 shares for approximately $2.4 million, reducing his position by 7.59%.

XP Inc. (NASDAQ:XP - Get Free Report) has earned an average recommendation of "Moderate Buy" from the six brokerages that are presently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $23.50.

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings raised shares of XP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. UBS Group decreased their target price on XP from $28.00 to $25.00 and set a "buy" rating on the stock in a report on Wednesday, June 3rd. Itau BBA Securities upgraded XP from a "market perform" rating to an "outperform" rating and set a $22.00 target price on the stock in a research report on Monday, August 31st. Finally, Citigroup boosted their price target on XP from $23.00 to $25.00 and gave the company a "buy" rating in a report on Tuesday.

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 transaction of $2,413,372.06. Following the transaction, the director directly owned 1,500,000 shares of the company's stock, valued at $29,370,000. The trade was a 7.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Institutional Investors Weigh In On XP

A number of institutional investors and hedge funds have recently added to or reduced their stakes in XP. EverSource Wealth Advisors LLC boosted its position in shares of XP by 46.2% in the first quarter. EverSource Wealth Advisors LLC now owns 2,471 shares of the company's stock worth $47,000 after purchasing an additional 781 shares during the period. Parallel Advisors LLC raised its position in shares of XP by 117.3% during the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company's stock valued at $63,000 after purchasing an additional 1,775 shares during the period. Integrated Wealth Concepts LLC purchased a new position in shares of XP during the 2nd quarter valued at $91,000. Global Retirement Partners LLC lifted its stake in shares of XP by 154.3% during the 4th quarter. Global Retirement Partners LLC now owns 5,597 shares of the company's stock valued at $92,000 after buying an additional 3,396 shares in the last quarter. Finally, Strategic Investment Advisors MI bought a new position in XP in the 1st quarter worth $126,000. Institutional investors own 59.15% of the company's stock.

XP Stock Performance

XP opened at $20.27 on Wednesday. The company's 50 day moving average is $18.11 and its 200 day moving average is $17.83. 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 company has a market cap of $10.89 billion, a price-to-earnings ratio of 10.61, a PEG ratio of 0.54 and a beta of 1.08. XP has a 12-month low of $14.80 and a 12-month high of $23.13.

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

XP Company Profile

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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