Sumitomo Mitsui Trust Group Inc. Increases Stake in XP Inc. $XP

Key Points

• Sumitomo Mitsui Trust Group Inc. increased its XP Inc. stake by 9.0% in the first quarter, adding 71,674 shares to reach 871,561 shares valued at about $16.6 million.
• XP shares were up 3.1% on Wednesday, opening at $16.87, with the stock trading near the lower end of its 52-week range and carrying a market cap of about $9.07 billion.
• The company announced a share buyback program and raised its annual dividend to $0.20 per share from $0.18, while analysts currently rate the stock a Moderate Buy with an average target price of $23.33.

Sumitomo Mitsui Trust Group Inc. increased its stake in XP Inc. (NASDAQ:XP - Free Report) by 9.0% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 871,561 shares of the company's stock after acquiring an additional 71,674 shares during the period. Sumitomo Mitsui Trust Group Inc. owned approximately 0.16% of XP worth $16,595,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the stock. EverSource Wealth Advisors LLC increased its position in XP by 65.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company's stock worth $33,000 after purchasing an additional 646 shares during the last quarter. FNY Investment Advisers LLC acquired a new position in shares of XP in the 4th quarter valued at $34,000. Caitong International Asset Management Co. Ltd boosted its holdings in shares of XP by 1,783.3% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,825 shares of the company's stock valued at $53,000 after purchasing an additional 2,675 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in shares of XP during the 4th quarter valued at $55,000. Finally, Vestcor Inc purchased a new stake in shares of XP during the 3rd quarter valued at $64,000. 59.15% of the stock is owned by institutional investors and hedge funds.

XP Trading Up 3.1%

Shares of XP stock opened at $16.87 on Wednesday. The company has a quick ratio of 6.66, a current ratio of 6.66 and a debt-to-equity ratio of 0.02. XP Inc. has a fifty-two week low of $14.80 and a fifty-two week high of $23.13. The firm's 50 day moving average price is $16.55 and its two-hundred day moving average price is $18.28. The stock has a market cap of $9.07 billion, a price-to-earnings ratio of 9.32, a price-to-earnings-growth ratio of 0.58 and a beta of 1.10.

XP declared that its Board of Directors has approved a share buyback program on Tuesday, May 19th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

XP Increases Dividend

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

Wall Street Analyst Weigh In

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

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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