XP Inc. $XP Shares Purchased by ARGA Investment Management LP

Key Points

• ARGA Investment Management LP boosted its stake in XP by 119.2% in Q4, adding 10,820,050 shares to hold 19,900,087 shares (about 3.70% of XP) worth roughly $325.8 million, making XP its third-largest position (8.9% of ARGA’s portfolio).
• Other major institutions—including UBS (+102.9%), Vanguard, Pictet and Ninety One—also increased holdings in Q4, leaving institutional and hedge fund ownership at about 59.15%.
• XP slightly beat Q4 EPS estimates with $0.46 (vs. $0.45) and revenue rose 10.3% YoY; the company has a market cap of ~$10.5B, a P/E of 11.32, and a consensus analyst rating of “Moderate Buy” with a $22.86 target (UBS raised its target to $28).

ARGA Investment Management LP boosted its stake in shares of XP Inc. (NASDAQ:XP - Free Report) by 119.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,900,087 shares of the company's stock after acquiring an additional 10,820,050 shares during the quarter. XP accounts for 8.9% of ARGA Investment Management LP's portfolio, making the stock its 3rd largest position. ARGA Investment Management LP owned about 3.70% of XP worth $325,764,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Pictet Asset Management Holding SA boosted its position in XP by 11.6% in the fourth quarter. Pictet Asset Management Holding SA now owns 539,486 shares of the company's stock valued at $8,831,000 after buying an additional 56,090 shares in the last quarter. UBS Group AG boosted its position in XP by 102.9% in the fourth quarter. UBS Group AG now owns 1,441,237 shares of the company's stock valued at $23,593,000 after buying an additional 730,905 shares in the last quarter. Vanguard Group Inc. boosted its position in XP by 4.7% in the fourth quarter. Vanguard Group Inc. now owns 3,784,717 shares of the company's stock valued at $61,956,000 after buying an additional 170,550 shares in the last quarter. Ninety One UK Ltd boosted its position in XP by 9.4% in the fourth quarter. Ninety One UK Ltd now owns 6,186,576 shares of the company's stock valued at $101,274,000 after buying an additional 533,952 shares in the last quarter. Finally, Ninety One North America Inc. increased its holdings in XP by 15.8% during the 4th quarter. Ninety One North America Inc. now owns 1,435,950 shares of the company's stock valued at $23,507,000 after purchasing an additional 195,948 shares in the last quarter. 59.15% of the stock is currently owned by institutional investors and hedge funds.

XP Stock Performance

Shares of XP stock opened at $19.58 on Tuesday. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.36 and a quick ratio of 6.12. The firm has a market cap of $10.52 billion, a P/E ratio of 11.32, a P/E/G ratio of 0.63 and a beta of 1.26. The firm has a 50 day simple moving average of $19.90 and a 200 day simple moving average of $18.69. XP Inc. has a fifty-two week low of $15.51 and a fifty-two week high of $23.13.

XP (NASDAQ:XP - Get Free Report) last issued its quarterly earnings results on Friday, February 13th. The company reported $0.46 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.01. XP had a net margin of 27.51% and a return on equity of 23.08%. The business had revenue of $806.08 million during the quarter. During the same period in the prior year, the business earned $2.23 EPS. The business's revenue for the quarter was up 10.3% on a year-over-year basis. Sell-side analysts predict that XP Inc. will post 2.06 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

XP has been the subject of a number of recent analyst reports. UBS Group raised their price target on XP from $25.00 to $28.00 and gave the company a "buy" rating in a report on Thursday, April 2nd. Zacks Research raised XP from a "hold" rating to a "strong-buy" rating in a report on Tuesday, March 3rd. Jefferies Financial Group began coverage on XP in a report on Monday, January 19th. They set a "buy" rating and a $22.00 price target for the company. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of XP in a research report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, XP has a consensus rating of "Moderate Buy" and a consensus target price 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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