Wealth High Governance Capital Ltda Makes New $9.99 Million Investment in XP Inc. $XP

Key Points

• Wealth High Governance Capital Ltda bought a new position of 610,262 shares (~$9.99M) in XP Inc., representing about 0.11% of XP and roughly 1.9% of that fund's holdings, making it the fund's 27th-largest holding.
• XP posted an EPS beat in the latest quarter ($0.46 vs. $0.45) with revenue of $806.08M (up 10.3% YoY), a net margin of 27.51% and ROE of 23.08%; shares trade near $18.38 with a market cap around $9.88B.
• Analyst sentiment is broadly positive — the consensus is a "Moderate Buy" with an average price target of $22.86, and recent firm actions include Jefferies initiating coverage at "buy," Zacks upgrading to "strong-buy," and UBS raising its target to $28.

Wealth High Governance Capital Ltda bought a new position in XP Inc. (NASDAQ:XP - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 610,262 shares of the company's stock, valued at approximately $9,990,000. XP makes up about 1.9% of Wealth High Governance Capital Ltda's holdings, making the stock its 27th biggest holding. Wealth High Governance Capital Ltda owned approximately 0.11% of XP at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC lifted its position in XP by 65.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company's stock worth $33,000 after buying an additional 646 shares in the last quarter. FNY Investment Advisers LLC purchased a new stake in XP in the 4th quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd lifted its position in 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 worth $53,000 after buying an additional 2,675 shares in the last quarter. Vestcor Inc purchased a new stake in XP in the 3rd quarter worth approximately $64,000. Finally, Virtus Advisers LLC purchased a new stake in XP in the 3rd quarter worth approximately $75,000. Hedge funds and other institutional investors own 59.15% of the company's stock.

XP Trading Down 4.6%

Shares of NASDAQ:XP opened at $18.38 on Thursday. The stock has a market capitalization of $9.88 billion, a PE ratio of 10.62, a P/E/G ratio of 0.63 and a beta of 1.26. XP Inc. has a 1 year low of $15.51 and a 1 year high of $23.13. The firm has a fifty day moving average price of $19.85 and a 200 day moving average price of $18.71. 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 (NASDAQ:XP - Get Free Report) last issued its quarterly earnings data on Friday, February 13th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.01. The firm had revenue of $806.08 million during the quarter. XP had a net margin of 27.51% and a return on equity of 23.08%. The company's revenue for the quarter was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.23 earnings per share. Analysts expect that XP Inc. will post 2.06 EPS for the current fiscal year.

Wall Street Analyst Weigh In

XP has been the subject of a number of research analyst reports. Jefferies Financial Group initiated coverage on shares of XP in a research report on Monday, January 19th. They issued a "buy" rating and a $22.00 target price for the company. Zacks Research upgraded shares of XP from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 3rd. Finally, UBS Group increased their target price on shares of XP from $25.00 to $28.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $22.86.

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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