WINTON GROUP Ltd Sells 282,102 Shares of XP Inc. $XP

Key Points

• WINTON GROUP Ltd cut its XP stake by 79.8% in the second quarter, selling 282,102 shares and retaining 71,400 shares valued at approximately $1.16 million.
• XP reported quarterly results above expectations, with EPS of $0.53 versus the $0.50 consensus and revenue of $943.55 million, up 8.3% year over year.
• Analyst sentiment remains positive: XP has a consensus rating of “Moderate Buy” and a $23 average price target, compared with shares trading at $19.86.

WINTON GROUP Ltd cut its position in shares of XP Inc. (NASDAQ:XP - Free Report) by 79.8% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 71,400 shares of the company's stock after selling 282,102 shares during the quarter. WINTON GROUP Ltd's holdings in XP were worth $1,161,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the company. ARGA Investment Management LP lifted its stake in XP by 4.0% in the 1st quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company's stock valued at $394,112,000 after acquiring an additional 799,048 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of XP by 10.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 11,799,175 shares of the company's stock worth $193,152,000 after acquiring an additional 1,160,977 shares in the last quarter. State Street Corp grew its stake in shares of XP by 1.3% during the 2nd quarter. State Street Corp now owns 9,696,864 shares of the company's stock worth $195,877,000 after acquiring an additional 125,818 shares in the last quarter. Morgan Stanley raised its holdings in shares of XP by 13.2% in the fourth quarter. Morgan Stanley now owns 9,524,277 shares of the company's stock valued at $155,912,000 after purchasing an additional 1,113,641 shares during the last quarter. Finally, Orbis Allan Gray Ltd acquired a new stake in shares of XP in the second quarter valued at approximately $161,639,000. 59.15% of the stock is currently owned by institutional investors.

XP Price Performance

Shares of XP stock opened at $19.86 on Monday. XP Inc. has a 52-week low of $14.80 and a 52-week high of $23.13. The stock has a market cap of $10.67 billion, a price-to-earnings ratio of 10.40, a PEG ratio of 0.54 and a beta of 1.08. The firm's 50-day moving average is $17.21 and its 200-day moving average is $17.87. The company has a debt-to-equity ratio of 0.07, a quick ratio of 4.80 and a current ratio of 4.80.

XP (NASDAQ:XP - Get Free Report) last posted its quarterly earnings results on Monday, August 17th. The company reported $0.53 EPS 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 analysts' expectations of $935.15 million. XP had a return on equity of 22.19% and a net margin of 27.20%.XP's quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter last year, the company posted $2.46 earnings per share. Sell-side analysts predict that XP Inc. will post 2.07 EPS for the current year.

XP declared that its board has authorized a share repurchase program on Tuesday, May 19th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. UBS Group cut their price objective on shares of XP from $28.00 to $25.00 and set a "buy" rating on the stock in a research report on Wednesday, June 3rd. Weiss Ratings raised shares of XP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. Finally, Itau BBA Securities upgraded shares of XP from a "market perform" rating to an "outperform" rating and set a $22.00 price target on the stock in a research note on Monday, August 31st. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $23.00.

About XP

XP Inc NASDAQ: XP is a Brazilian financial services company that operates an investment platform serving individual investors, financial advisors, corporations and institutional clients. Through its platform and affiliated brands, the company provides access to a broad range of financial products and investment solutions.

Its services include brokerage and custody, investment advisory, portfolio management, banking and credit products, insurance, retirement solutions and financial education.

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