XP Inc. $XP Shares Sold by First Trust Advisors LP

Key Points

• First Trust Advisors LP reduced its XP stake by 17.5% in the first quarter, selling 93,425 shares and retaining 441,514 shares worth approximately $8.4 million. Institutional investors and hedge funds collectively own 59.15% of XP.
• XP shares opened at $17.06, near the lower end of their 52-week range of $14.80 to $23.13. The stock has a market capitalization of about $9.17 billion and trades at a price-to-earnings ratio of 9.43.
• XP raised its annual dividend to $0.20 per share from $0.18, with a payout ratio of 22.10%. Analysts maintain a “Moderate Buy” consensus and an average price target of $23.33, despite UBS lowering its target to $25.

First Trust Advisors LP trimmed its holdings in shares of XP Inc. (NASDAQ:XP - Free Report) by 17.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 441,514 shares of the company's stock after selling 93,425 shares during the period. First Trust Advisors LP owned 0.08% of XP worth $8,406,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also made changes to their positions in the business. ABN Amro Investment Solutions acquired a new stake in shares of XP during the 1st quarter worth about $596,000. PNC Financial Services Group Inc. boosted its holdings in XP by 25.7% in the first quarter. PNC Financial Services Group Inc. now owns 17,419 shares of the company's stock valued at $332,000 after purchasing an additional 3,564 shares in the last quarter. Parallel Advisors LLC boosted its holdings in XP by 117.3% in the first quarter. Parallel Advisors LLC now owns 3,288 shares of the company's stock valued at $63,000 after purchasing an additional 1,775 shares in the last quarter. KBC Group NV increased its stake in XP by 77.1% in the first quarter. KBC Group NV now owns 303,661 shares of the company's stock valued at $5,782,000 after purchasing an additional 132,225 shares during the last quarter. Finally, SEB Asset Management AB purchased a new position in XP in the first quarter valued at approximately $2,133,000. 59.15% of the stock is owned by institutional investors and hedge funds.

XP Stock Down 0.8%

Shares of NASDAQ XP opened at $17.06 on Friday. The stock has a market cap of $9.17 billion, a PE ratio of 9.43, a price-to-earnings-growth ratio of 0.61 and a beta of 1.10. 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 52-week low of $14.80 and a 52-week high of $23.13. The business has a 50-day moving average price of $16.25 and a 200 day moving average price of $18.29.

XP Increases Dividend

The company also recently declared an annual dividend, which was paid on Thursday, June 18th. Shareholders of record on Wednesday, June 10th were given a dividend of $0.20 per share. This represents a yield of 268.0%. 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. XP's dividend payout ratio is presently 22.10%.

XP announced that its board has authorized a stock buyback plan on Tuesday, May 19th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Zacks Research downgraded shares of XP from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 1st. Weiss Ratings raised shares of XP from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. Finally, UBS Group dropped their target price 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. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, XP presently has an average rating of "Moderate Buy" and an average price target of $23.33.

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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