SPX Gestao de Recursos Ltda Sells 3,008,306 Shares of XP Inc. $XP

Key Points

• SPX Gestao de Recursos Ltda sharply reduced its XP Inc. stake by 71.7% in the first quarter, selling 3,008,306 shares and leaving it with 1,187,073 shares worth about $22.6 million.
• Analyst sentiment on XP is mixed but still constructive: the stock has a Moderate Buy consensus with an average price target of $23.33, though one firm downgraded it to Hold and UBS trimmed its target to $25.
• XP recently announced a share buyback authorization and raised its annual dividend to $0.20 per share, while the stock was trading near $16.67 and remained below its 200-day moving average.

SPX Gestao de Recursos Ltda cut its position in XP Inc. (NASDAQ:XP - Free Report) by 71.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,187,073 shares of the company's stock after selling 3,008,306 shares during the period. XP comprises about 1.9% of SPX Gestao de Recursos Ltda's portfolio, making the stock its 16th largest position. SPX Gestao de Recursos Ltda owned approximately 0.22% of XP worth $22,602,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Assetmark Inc. acquired a new stake in XP during the 1st quarter worth $6,234,000. Barings LLC acquired a new stake in shares of XP during the first quarter worth about $3,821,000. Aware Super Pty Ltd as trustee of Aware Super bought a new stake in XP during the 1st quarter worth approximately $15,184,000. Twin Capital Management Inc. bought a new stake in XP during the 1st quarter worth approximately $693,000. Finally, Triglav Investments D.O.O. raised its holdings in XP by 30.4% during the 1st quarter. Triglav Investments D.O.O. now owns 60,033 shares of the company's stock worth $1,143,000 after buying an additional 14,000 shares during the period. 59.15% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages recently weighed in on XP. Zacks Research lowered shares of XP from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 1st. Weiss Ratings raised XP from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. Finally, UBS Group decreased their price objective on XP from $28.00 to $25.00 and set a "buy" rating for the company in a report on Wednesday, June 3rd. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, XP presently has a consensus rating of "Moderate Buy" and an average price target of $23.33.

XP Stock Down 0.1%

XP stock opened at $16.67 on Friday. The company has a quick ratio of 6.66, a current ratio of 6.66 and a debt-to-equity ratio of 0.02. The business has a 50 day moving average price of $16.40 and a two-hundred day moving average price of $18.28. The company has a market cap of $8.96 billion, a price-to-earnings ratio of 9.21, a P/E/G ratio of 0.59 and a beta of 1.10. XP Inc. has a twelve month low of $14.80 and a twelve month high of $23.13.

XP announced that its Board of Directors has initiated a share buyback plan on Tuesday, May 19th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Shares repurchase plans are generally 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. Shareholders of record on Wednesday, June 10th were given a dividend of $0.20 per share. This represents a yield of 268.0%. This is an increase from XP's previous annual dividend of $0.18. The ex-dividend date of this dividend was Wednesday, June 10th. XP's payout ratio is currently 22.10%.

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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