Amundi Boosts Stock Position in XP Inc. $XP

Key Points

• Amundi increased its XP stake by 51.9% in the first quarter, acquiring 395,283 additional shares and bringing its holdings to 1.16 million shares valued at approximately $22 million. Institutional investors collectively own 59.15% of XP.
• Analyst sentiment remains positive but tempered: XP has a consensus “Moderate Buy” rating from five analysts, with an average price target of $23.33. UBS lowered its target from $28 to $25, while Zacks downgraded the stock to “Hold.”
• XP raised its annual dividend to $0.20 from $0.18, with a reported 22.10% payout ratio. The stock opened at $17.03, compared with a 52-week range of $14.80 to $23.13.

Amundi increased its stake in shares of XP Inc. (NASDAQ:XP - Free Report) by 51.9% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,157,087 shares of the company's stock after buying an additional 395,283 shares during the quarter. Amundi owned about 0.22% of XP worth $22,031,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. ARGA Investment Management LP boosted its position in shares of XP by 4.0% during the 1st quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company's stock valued at $394,112,000 after acquiring an additional 799,048 shares during the last quarter. Massachusetts Financial Services Co. MA grew its holdings in shares of 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 purchasing an additional 1,300,982 shares during the period. Arrowstreet Capital Limited Partnership increased its position in XP by 10.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 11,799,175 shares of the company's stock worth $193,152,000 after purchasing an additional 1,160,977 shares during the last quarter. State Street Corp increased its position in XP by 1.3% during the second quarter. State Street Corp now owns 9,696,864 shares of the company's stock worth $195,877,000 after purchasing an additional 125,818 shares during the last quarter. Finally, Morgan Stanley raised its stake in XP by 13.2% during the fourth quarter. Morgan Stanley now owns 9,524,277 shares of the company's stock worth $155,912,000 after purchasing an additional 1,113,641 shares during the period. Institutional investors and hedge funds own 59.15% of the company's stock.

Analysts Set New Price Targets

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

XP Stock Performance

NASDAQ:XP opened at $17.03 on Tuesday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.66 and a current ratio of 6.66. The stock has a market capitalization of $9.15 billion, a P/E ratio of 9.41, a PEG ratio of 0.49 and a beta of 1.10. The company has a 50 day moving average price of $16.26 and a 200 day moving average price of $18.30. XP Inc. has a fifty-two week low of $14.80 and a fifty-two week high of $23.13.

XP Increases Dividend

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

XP declared that its board has authorized a stock repurchase plan on Tuesday, May 19th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

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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