XP Inc. $XP Shares Sold by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management reduced its XP stake by 7.9% in the third quarter, selling 75,284 shares and retaining 872,164 shares valued at approximately $18.3 million. Institutional investors collectively own 59.15% of XP.
• XP reported quarterly EPS of $0.53, exceeding the $0.50 consensus estimate, while revenue rose 8.3% year over year to $943.55 million. The company posted a 27.2% net margin and 22.19% return on equity.
• Analyst sentiment remains positive, with five Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $28.80; JPMorgan and UBS recently raised their targets to $38 and $37, respectively.

Assenagon Asset Management S.A. decreased its stake in XP Inc. (NASDAQ:XP - Free Report) by 7.9% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 872,164 shares of the company's stock after selling 75,284 shares during the period. Assenagon Asset Management S.A. owned 0.16% of XP worth $18,311,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. ARGA Investment Management LP increased its position in XP by 4.0% in the first quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company's stock worth $394,112,000 after buying an additional 799,048 shares during the last quarter. Ninety One UK Ltd lifted its holdings in XP by 23.6% during the third quarter. Ninety One UK Ltd now owns 9,962,623 shares of the company's stock valued at $209,165,000 after purchasing an additional 1,904,034 shares during the last quarter. Bank of America Corp DE lifted its holdings in XP by 33.4% during the first quarter. Bank of America Corp DE now owns 5,147,245 shares of the company's stock valued at $98,004,000 after purchasing an additional 1,289,393 shares during the last quarter. Ninety One North America Inc. boosted its position in XP by 1.2% during the third quarter. Ninety One North America Inc. now owns 1,843,127 shares of the company's stock worth $38,696,000 after purchasing an additional 21,082 shares during the period. Finally, Sei Investments Co. boosted its position in XP by 2.4% during the first quarter. Sei Investments Co. now owns 1,626,489 shares of the company's stock worth $30,968,000 after purchasing an additional 37,929 shares during the period. 59.15% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other XP news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the company's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total value of $2,413,372.06. Following the transaction, the director directly owned 1,500,000 shares in the company, valued at $29,370,000. This represents a 7.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

XP Price Performance

Shares of NASDAQ:XP opened at $29.23 on Monday. The company has a 50 day moving average of $21.08 and a 200 day moving average of $18.71. The stock has a market cap of $15.71 billion, a P/E ratio of 15.30, a P/E/G ratio of 0.78 and a beta of 1.01. XP Inc. has a 12 month low of $14.80 and a 12 month high of $32.73. The company has a current ratio of 4.80, a quick ratio of 4.80 and a debt-to-equity ratio of 0.07.

XP (NASDAQ:XP - Get Free Report) last posted its earnings results on Monday, August 17th. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.03. XP had a net margin of 27.20% and a return on equity of 22.19%. The business had revenue of $943.55 million for the quarter, compared to analysts' expectations of $935.15 million. During the same period in the prior year, the company posted $2.46 EPS. The business's revenue for the quarter was up 8.3% compared to the same quarter last year. As a group, sell-side analysts forecast that XP Inc. will post 2.09 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of XP from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, September 2nd. Citigroup upped their price target on shares of XP from $23.00 to $25.00 and gave the company a "buy" rating in a research note on Tuesday, September 29th. JPMorgan Chase & Co. upped their price target on shares of XP from $26.00 to $38.00 and gave the company an "overweight" rating in a research note on Tuesday, October 6th. Itau BBA Securities raised shares of XP from a "market perform" rating to an "outperform" rating and set a $22.00 price objective for the company in a report on Monday, August 31st. Finally, UBS Group lifted their price objective on shares of XP from $25.00 to $37.00 and gave the company a "buy" rating in a research note on Thursday, October 8th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $28.80.

XP Profile

XP Inc is a Brazil-based financial services platform that provides investment, banking and related financial products to individuals, businesses and institutional clients. Through its digital platforms and network of financial professionals, the company offers access to investments such as stocks, bonds, mutual funds, exchange-traded funds, real estate funds, retirement products and insurance.

The company operates a portfolio of brands that includes XP, Rico and Clear, serving customers with different investment needs and levels of experience.

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