ARGA Investment Management LP Buys 799,048 Shares of XP Inc. $XP

Key Points

• ARGA Investment Management LP increased its stake in XP Inc. by 4.0% in the first quarter, buying 799,048 shares and bringing its total holdings to 20.7 million shares. XP is now ARGA’s largest portfolio position, making up about 12.9% of assets.
• XP’s stock buyback program was approved by its board in May, which the article notes can signal management believes the shares are undervalued. The company also recently raised its annual dividend from $0.18 to $0.20.
• Wall Street sentiment on XP remains mixed but constructive, with a consensus rating of Moderate Buy and an average target price of $23.33. The stock last traded at $16.92, below that target and near its 52-week range lows.

ARGA Investment Management LP boosted its stake in XP Inc. (NASDAQ:XP - Free Report) by 4.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 20,699,135 shares of the company's stock after acquiring an additional 799,048 shares during the period. XP comprises approximately 12.9% of ARGA Investment Management LP's portfolio, making the stock its largest position. ARGA Investment Management LP owned approximately 3.85% of XP worth $394,112,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the stock. PNC Financial Services Group Inc. increased its position in shares of XP by 4.3% during the fourth quarter. PNC Financial Services Group Inc. now owns 13,855 shares of the company's stock worth $227,000 after purchasing an additional 573 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of XP by 65.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company's stock valued at $33,000 after purchasing an additional 646 shares during the last quarter. SummitTX Capital L.P. boosted its position in shares of XP by 2.8% in the 4th quarter. SummitTX Capital L.P. now owns 30,978 shares of the company's stock valued at $507,000 after purchasing an additional 857 shares during the period. California State Teachers Retirement System boosted its position in shares of XP by 1.6% in the 3rd quarter. California State Teachers Retirement System now owns 54,107 shares of the company's stock valued at $1,017,000 after purchasing an additional 866 shares during the period. Finally, Inspire Investing LLC grew its stake in XP by 1.0% during the 1st quarter. Inspire Investing LLC now owns 89,121 shares of the company's stock worth $1,697,000 after buying an additional 906 shares during the last quarter. Institutional investors and hedge funds own 59.15% of the company's stock.

XP Stock Performance

NASDAQ XP opened at $16.92 on Friday. The company has a quick ratio of 6.66, a current ratio of 6.66 and a debt-to-equity ratio of 0.02. XP Inc. has a 52-week low of $14.80 and a 52-week high of $23.13. The business's 50-day moving average price is $16.64 and its 200 day moving average price is $18.26. The firm has a market cap of $9.09 billion, a P/E ratio of 9.35, a P/E/G ratio of 0.58 and a beta of 1.10.

XP announced that its board has approved a stock buyback program on Tuesday, May 19th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

XP Increases Dividend

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

Wall Street Analyst Weigh In

Several research firms have commented on XP. Weiss Ratings raised XP from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. UBS Group decreased their price objective on XP from $28.00 to $25.00 and set a "buy" rating for the company in a report on Wednesday, June 3rd. 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 equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, XP has a consensus rating of "Moderate Buy" and an average target price of $23.33.

XP 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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