Gimbal Financial Purchases New Position in XP Inc. $XP

Key Points

• Gimbal Financial purchased 433,875 XP shares worth approximately $9.1 million, making XP its seventh-largest holding and representing about 5.3% of the fund’s portfolio. Institutional investors and hedge funds collectively own 59.15% of XP.
• Analyst sentiment is favorable: XP has a consensus “Moderate Buy” rating, with five Buy and two Hold ratings. Recent price targets include $37 from UBS and $38 from JPMorgan, while the average target is $28.80.
• XP shares rose 2.9% to $30.08, near the company’s 52-week high of $32.73. Its latest quarterly results exceeded estimates, with adjusted EPS of $0.53 and revenue of $943.55 million, up 8.3% year over year.

Gimbal Financial purchased a new stake in shares of XP Inc. (NASDAQ:XP - Free Report) during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 433,875 shares of the company's stock, valued at approximately $9,109,000. XP comprises approximately 5.3% of Gimbal Financial's holdings, making the stock its 7th largest holding. Gimbal Financial owned 0.08% of XP as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also made changes to their positions in XP. ARGA Investment Management LP increased its position in XP by 4.0% in 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 period. Ninety One UK Ltd raised its stake in XP by 23.6% during the 3rd quarter. Ninety One UK Ltd now owns 9,962,623 shares of the company's stock valued at $209,165,000 after acquiring an additional 1,904,034 shares in the last quarter. Bank of America Corp DE boosted its position in XP by 33.4% during the 1st quarter. Bank of America Corp DE now owns 5,147,245 shares of the company's stock worth $98,004,000 after acquiring an additional 1,289,393 shares during the period. Ninety One North America Inc. boosted its position in XP by 1.2% during the 3rd quarter. Ninety One North America Inc. now owns 1,843,127 shares of the company's stock worth $38,696,000 after acquiring an additional 21,082 shares during the period. Finally, Assenagon Asset Management S.A. boosted its position in XP by 146.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 1,930,445 shares of the company's stock worth $36,756,000 after acquiring an additional 1,146,057 shares during the period. 59.15% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently weighed in on XP shares. Citigroup upped their price objective on shares of XP from $23.00 to $25.00 and gave the stock a "buy" rating in a report on Tuesday, September 29th. Weiss Ratings upgraded shares of XP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. Itau BBA Securities raised shares of XP from a "market perform" rating to an "outperform" rating and set a $22.00 target price on the stock in a research note on Monday, August 31st. UBS Group boosted their price target on shares of XP from $25.00 to $37.00 and gave the stock a "buy" rating in a research report on Thursday, October 8th. Finally, JPMorgan Chase & Co. boosted their price target on shares of XP from $26.00 to $38.00 and gave the stock an "overweight" rating in a research report on Tuesday, October 6th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $28.80.

XP Trading Up 2.9%

Shares of NASDAQ:XP traded up $0.85 during midday trading on Monday, reaching $30.08. The company had a trading volume of 5,094,970 shares, compared to its average volume of 6,629,671. The company has a fifty day simple moving average of $21.08 and a two-hundred day simple moving average of $18.71. The firm has a market cap of $16.17 billion, a price-to-earnings ratio of 15.76, a price-to-earnings-growth ratio of 0.78 and a beta of 1.01. The company has a debt-to-equity ratio of 0.07, a quick ratio of 4.80 and a current ratio of 4.80. XP Inc. has a 1-year low of $14.80 and a 1-year high of $32.73.

XP (NASDAQ:XP - Get Free Report) last issued its quarterly earnings results on Monday, August 17th. The company reported $0.53 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $935.15 million. During the same quarter in the prior year, the firm earned $2.46 EPS. The firm's quarterly revenue was up 8.3% on a year-over-year basis. Research analysts predict that XP Inc. will post 2.09 earnings per share for the current year.

Insider Activity

In other news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the firm's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total value of $2,413,372.06. Following the completion of the sale, the director owned 1,500,000 shares of the company's stock, valued at $29,370,000. This trade represents a 7.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link.

XP Profile

XP Inc is a Brazilian financial services company that operates a technology-driven investment and financial products platform. Through its digital channels and network of advisors, the company offers access to products including stocks, bonds, investment funds, exchange-traded funds, insurance and retirement products. It serves individual investors, businesses, institutional clients and independent financial advisors.

The company's principal brands and businesses include XP, Rico and Clear, which provide brokerage and investment services to different customer segments.

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