797,491 Shares in XP Inc. $XP Bought by Aware Super Pty Ltd as trustee of Aware Super

Key Points

• Aware Super bought a new stake in XP Inc. in Q1, purchasing 797,491 shares worth about $15.2 million, giving it roughly 0.15% ownership of the company.
• Institutional ownership in XP remains high, with hedge funds and other institutions holding about 59.15% of the stock. Several large investors, including ARGA Investment Management and Massachusetts Financial Services, also increased their positions.
• XP shares recently traded at $16.67, below the consensus analyst price target of $23.33. The company also raised its annual dividend to $0.20 per share and has a modest payout ratio of 22.10%.

Aware Super Pty Ltd as trustee of Aware Super purchased a new stake in shares of XP Inc. (NASDAQ:XP - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 797,491 shares of the company's stock, valued at approximately $15,184,000. Aware Super Pty Ltd as trustee of Aware Super owned about 0.15% of XP as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. ARGA Investment Management LP increased its stake 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 valued at $394,112,000 after buying 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 acquiring an additional 1,300,982 shares in the last quarter. 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 acquiring an additional 1,160,977 shares in the last quarter. State Street Corp increased its position in XP by 1.3% during the 2nd quarter. State Street Corp now owns 9,696,864 shares of the company's stock valued at $195,877,000 after purchasing an additional 125,818 shares during the period. Finally, Morgan Stanley increased its position in XP by 13.2% during the 4th quarter. Morgan Stanley now owns 9,524,277 shares of the company's stock valued at $155,912,000 after purchasing an additional 1,113,641 shares during the period. Hedge funds and other institutional investors own 59.15% of the company's stock.

XP Stock Performance

XP opened at $16.67 on Friday. The company has a current ratio of 6.66, a quick ratio of 6.66 and a debt-to-equity ratio of 0.02. The company has a market cap of $8.96 billion, a price-to-earnings ratio of 9.21, a PEG ratio of 0.59 and a beta of 1.10. The company's 50 day moving average is $16.40 and its 200 day moving average is $18.28. XP Inc. has a 12-month low of $14.80 and a 12-month high of $23.13.

XP Increases Dividend

The business also recently announced an annual dividend, which was paid on Thursday, June 18th. Investors of record on Wednesday, June 10th were issued a $0.20 dividend. The ex-dividend date of this dividend was Wednesday, June 10th. This represents a yield of 268.0%. This is an increase from XP's previous annual dividend of $0.18. XP's payout ratio is 22.10%.

XP announced that its board has initiated a stock buyback plan on Tuesday, May 19th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

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

XP Company Profile

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.

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