Bank of America Corp DE Buys 1,289,393 Shares of XP Inc. $XP

Key Points

• Bank of America increased its XP stake by 33.4% in the first quarter, purchasing 1.29 million additional shares and bringing its holdings to 5.15 million shares valued at approximately $98 million.
• Institutional investors own about 59.15% of XP, while the stock recently traded at $16.24, near its 12-month low of $14.80 and below its 12-month high of $23.13.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $23.33; XP also raised its annual dividend to $0.20 per share.

Bank of America Corp DE raised its position in shares of XP Inc. (NASDAQ:XP - Free Report) by 33.4% in the first quarter, according to its most recent filing with the SEC. The firm owned 5,147,245 shares of the company's stock after purchasing an additional 1,289,393 shares during the quarter. Bank of America Corp DE owned approximately 0.96% of XP worth $98,004,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. PNC Financial Services Group Inc. increased its position in shares of XP by 4.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 13,855 shares of the company's stock valued at $227,000 after purchasing an additional 573 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in XP by 65.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company's stock worth $33,000 after buying an additional 646 shares during the last quarter. SummitTX Capital L.P. boosted its stake in XP by 2.8% during the fourth quarter. SummitTX Capital L.P. now owns 30,978 shares of the company's stock worth $507,000 after buying an additional 857 shares during the period. California State Teachers Retirement System increased its position in XP by 1.6% during the third quarter. California State Teachers Retirement System now owns 54,107 shares of the company's stock valued at $1,017,000 after acquiring an additional 866 shares during the last quarter. Finally, Inspire Investing LLC increased its position in XP by 1.0% during the first quarter. Inspire Investing LLC now owns 89,121 shares of the company's stock valued at $1,697,000 after acquiring an additional 906 shares during the last quarter. Institutional investors own 59.15% of the company's stock.

XP Stock Down 2.6%

Shares of XP opened at $16.24 on Friday. The firm has a market capitalization of $8.73 billion, a P/E ratio of 8.97, a P/E/G ratio of 0.48 and a beta of 1.10. XP Inc. has a 12-month low of $14.80 and a 12-month high of $23.13. 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 firm has a fifty day moving average price of $16.23 and a 200-day moving average price of $18.27.

XP announced that its board has authorized 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.

XP Increases Dividend

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

Analyst Ratings Changes

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

About XP

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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