Massachusetts Financial Services Co. MA Purchases 1,300,982 Shares of XP Inc. $XP

Key Points

• Massachusetts Financial Services Co. increased its stake in XP by 11.9% in Q4, buying 1,300,982 shares to own 12,263,021 shares (about 2.28% of XP) valued at roughly $200.75 million.
• Several other institutions — including Schroder, Ninety One, AQR, ARGA and Orbis — also materially increased positions, leaving institutional ownership at about 59.15%.
• Analysts hold a consensus "Moderate Buy" with a $22.86 price target, amid recent upgrades (Zacks to strong-buy, UBS raising its target to $28) and a quarter that beat EPS expectations with revenue up 10.3%.

Massachusetts Financial Services Co. MA grew its position in shares of XP Inc. (NASDAQ:XP - Free Report) by 11.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 12,263,021 shares of the company's stock after purchasing an additional 1,300,982 shares during the period. Massachusetts Financial Services Co. MA owned about 2.28% of XP worth $200,746,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in XP. ARGA Investment Management LP bought a new stake in XP during the third quarter worth about $170,614,000. Orbis Allan Gray Ltd bought a new stake in XP during the second quarter worth about $161,639,000. Schroder Investment Management Group lifted its stake in XP by 74.4% during the third 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. Ninety One UK Ltd lifted its stake in XP by 201.4% during the third quarter. Ninety One UK Ltd now owns 5,652,624 shares of the company's stock worth $106,213,000 after purchasing an additional 3,776,988 shares during the last quarter. Finally, AQR Capital Management LLC lifted its stake in XP by 1,433.5% during the second 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. Institutional investors own 59.15% of the company's stock.

Wall Street Analysts Forecast Growth

XP has been the subject of several research analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of XP in a research note on Monday, December 29th. Zacks Research upgraded XP from a "hold" rating to a "strong-buy" rating in a report on Tuesday, March 3rd. UBS Group lifted their price objective on XP from $25.00 to $28.00 and gave the stock a "buy" rating in a report on Thursday, April 2nd. Finally, Jefferies Financial Group began coverage on XP in a report on Monday, January 19th. They issued a "buy" rating and a $22.00 price objective on the stock. One 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 company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $22.86.

XP Price Performance

XP opened at $19.99 on Monday. The company has a market cap of $10.74 billion, a P/E ratio of 11.55, a P/E/G ratio of 0.64 and a beta of 1.26. The business's 50-day moving average price is $19.73 and its 200-day moving average price is $18.48. The company has a current ratio of 5.36, a quick ratio of 6.12 and a debt-to-equity ratio of 0.01. XP Inc. has a 12 month low of $12.79 and a 12 month high of $23.13.

XP (NASDAQ:XP - Get Free Report) last released its quarterly earnings data on Friday, February 13th. The company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.45 by $0.01. The firm had revenue of $806.08 million for the quarter. XP had a return on equity of 23.08% and a net margin of 27.51%.The firm's quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.23 EPS. On average, equities analysts expect that XP Inc. will post 1.36 EPS for the current year.

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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