Healthcare of Ontario Pension Plan Trust Fund Purchases Shares of 161,300 XP Inc. $XP

Key Points

• Healthcare of Ontario Pension Plan Trust Fund acquired 161,300 XP Inc. shares in the first quarter, valued at approximately $3.07 million. Institutional investors collectively own 59.15% of XP’s stock.
• XP shares opened at $17.20, below the analyst consensus target of $23.33. Analysts maintain a “Moderate Buy” consensus, with three Buy ratings and two Holds.
• XP increased its annual dividend to $0.20 per share and announced a share repurchase authorization, which typically signals management believes the stock may be undervalued.

Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of XP Inc. (NASDAQ:XP - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 161,300 shares of the company's stock, valued at approximately $3,071,000.

A number of other institutional investors also recently modified their holdings of the company. ARGA Investment Management LP increased its holdings in XP by 119.2% during the 4th quarter. ARGA Investment Management LP now owns 19,900,087 shares of the company's stock valued at $325,764,000 after purchasing an additional 10,820,050 shares in the last quarter. Orbis Allan Gray Ltd acquired a new stake in shares of XP in the second quarter valued at $161,639,000. Norges Bank bought a new position in shares of XP in the fourth quarter valued at about $80,196,000. AQR Capital Management LLC lifted its position in XP by 1,433.5% during the 2nd quarter. AQR Capital Management LLC now owns 3,336,183 shares of the company's stock worth $67,391,000 after buying an additional 3,118,626 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in XP during the 4th quarter worth about $39,145,000. Institutional investors own 59.15% of the company's stock.

XP Price Performance

Shares of XP opened at $17.20 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. XP Inc. has a 1 year low of $14.80 and a 1 year high of $23.13. The stock has a market cap of $9.24 billion, a P/E ratio of 9.50, a price-to-earnings-growth ratio of 0.58 and a beta of 1.10. The stock's 50-day moving average price is $16.25 and its two-hundred day moving average price is $18.30.

XP declared that its Board of Directors has initiated a share buyback plan on Tuesday, May 19th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

XP Increases Dividend

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

Wall Street Analysts Forecast Growth

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