Hussman Strategic Advisors Inc. Makes New $1.38 Million Investment in XP Inc. $XP

Key Points

• Hussman Strategic Advisors opened a new position in XP Inc., buying 84,000 shares in the fourth quarter valued at about $1.38 million.
• Several large institutions also boosted stakes—most notably ARGA, which added 10.82 million shares to hold 19.9 million total—and institutional investors now own about 59.15% of XP's stock.
• XP reported a quarterly EPS beat ($0.46 vs. $0.45) with revenue up 10.3% and strong margins (ROE 23.08%, net margin 27.51%); the stock trades at a market cap of ~$10.24B and carries an average analyst target of $22.86 (UBS recently raised its target to $28).

Hussman Strategic Advisors Inc. purchased a new position in shares of XP Inc. (NASDAQ:XP - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund purchased 84,000 shares of the company's stock, valued at approximately $1,375,000.

Several other institutional investors have also recently made changes to their positions in XP. ARGA Investment Management LP increased its position in shares of XP by 119.2% during the 4th quarter. ARGA Investment Management LP now owns 19,900,087 shares of the company's stock worth $325,764,000 after purchasing an additional 10,820,050 shares during the last quarter. Orbis Allan Gray Ltd acquired a new position in shares of XP during the 2nd quarter worth approximately $161,639,000. Schroder Investment Management Group increased its position in shares of XP by 74.4% during the 3rd quarter. Schroder Investment Management Group now owns 12,288,191 shares of the company's stock worth $230,895,000 after purchasing an additional 5,240,306 shares during the last quarter. AQR Capital Management LLC increased its position in shares of 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 purchasing an additional 3,118,626 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its position in shares of XP by 26.4% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 10,962,039 shares of the company's stock worth $205,977,000 after purchasing an additional 2,288,919 shares during the last quarter. Institutional investors and hedge funds own 59.15% of the company's stock.

XP Stock Performance

Shares of NASDAQ XP opened at $19.06 on Monday. The company has a current ratio of 5.36, a quick ratio of 5.36 and a debt-to-equity ratio of 0.01. XP Inc. has a 12 month low of $15.51 and a 12 month high of $23.13. The stock has a 50 day moving average of $19.81 and a 200-day moving average of $18.75. The company has a market capitalization of $10.24 billion, a P/E ratio of 11.02, a P/E/G ratio of 0.61 and a beta of 1.17.

XP (NASDAQ:XP - Get Free Report) last issued its earnings results on Friday, February 13th. The company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.45 by $0.01. XP had a return on equity of 23.08% and a net margin of 27.51%.The company had revenue of $806.08 million during the quarter. During the same quarter in the prior year, the firm posted $2.23 earnings per share. The business's revenue was up 10.3% compared to the same quarter last year. As a group, equities research analysts predict that XP Inc. will post 2.06 EPS for the current year.

Wall Street Analyst Weigh In

XP has been the topic of several recent analyst reports. Zacks Research raised XP from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 3rd. Jefferies Financial Group initiated coverage on XP in a research report on Monday, January 19th. They set a "buy" rating and a $22.00 price target on the stock. Finally, UBS Group boosted their price target on XP from $25.00 to $28.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $22.86.

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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