Ninety One UK Ltd Acquires 1,904,034 Shares of XP Inc. $XP

Key Points

• Ninety One UK increased its XP stake by 23.6%, acquiring 1.90 million additional shares to own 9.96 million shares, or 1.85% of the company valued at approximately $209.2 million.
• XP exceeded quarterly expectations, reporting $0.53 in earnings per share versus a $0.50 consensus estimate and $943.6 million in revenue, up 8.3% year over year.
• Analyst sentiment remains favorable, with five Buy ratings and two Holds, a “Moderate Buy” consensus, and an average price target of $28.80; JPMorgan and UBS recently raised their targets to $38 and $37, respectively.

Ninety One UK Ltd boosted its holdings in shares of XP Inc. (NASDAQ:XP - Free Report) by 23.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,962,623 shares of the company's stock after acquiring an additional 1,904,034 shares during the period. Ninety One UK Ltd owned 1.85% of XP worth $209,165,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of the business. EverSource Wealth Advisors LLC increased its stake in shares of XP by 46.2% during the first quarter. EverSource Wealth Advisors LLC now owns 2,471 shares of the company's stock valued at $47,000 after purchasing an additional 781 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of XP by 117.3% in the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company's stock worth $63,000 after buying an additional 1,775 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of XP in the 2nd quarter worth approximately $91,000. Strategic Investment Advisors MI bought a new position in XP during the 1st quarter valued at approximately $126,000. Finally, 9823 Capital L.P. bought a new position in XP during the 4th quarter valued at approximately $183,000. Institutional investors own 59.15% of the company's stock.

XP Stock Performance

Shares of XP stock traded down $0.25 during trading on Thursday, hitting $30.24. 5,789,518 shares of the company's stock traded hands, compared to its average volume of 6,600,753. The company has a debt-to-equity ratio of 0.07, a current ratio of 4.80 and a quick ratio of 4.80. XP Inc. has a 1 year low of $14.80 and a 1 year high of $32.73. The stock has a market capitalization of $16.25 billion, a P/E ratio of 15.82, a PEG ratio of 0.84 and a beta of 1.01. The business has a 50-day simple moving average of $20.55 and a 200-day simple moving average of $18.54.

XP (NASDAQ:XP - Get Free Report) last issued its earnings results on Monday, August 17th. The company reported $0.53 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.03. The business had revenue of $943.55 million during the quarter, compared to analyst estimates of $935.15 million. XP had a return on equity of 22.19% and a net margin of 27.20%. XP's revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.46 EPS. As a group, analysts forecast that XP Inc. will post 2.09 EPS for the current year.

Insider Activity at XP

In other news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $19.58, for a total transaction of $2,413,372.06. Following the completion of the transaction, the director directly owned 1,500,000 shares of the company's stock, valued at $29,370,000. The trade was a 7.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Analysts Set New Price Targets

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

XP Profile

XP Inc is a Brazil-based financial services platform that provides investment, banking and related financial products to individuals, businesses and institutional clients. Through its digital platforms and network of financial professionals, the company offers access to investments such as stocks, bonds, mutual funds, exchange-traded funds, real estate funds, retirement products and insurance.

The company operates a portfolio of brands that includes XP, Rico and Clear, serving customers with different investment needs and levels of experience.

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