XP Target of Unusually High Options Trading (NASDAQ:XP)

Key Points

• XP saw unusually high options activity, with investors purchasing 145,781 call options—about 1,700% above its average call volume of 8,099.
• Institutional interest increased, with several investors adding to or initiating positions; institutions now own approximately 59.15% of XP’s shares.
• XP recently beat quarterly earnings and revenue estimates, while analysts maintain a Moderate Buy consensus with an average price target of $23, above the reported share price of $20.19.

XP Inc. (NASDAQ:XP - Get Free Report) saw unusually large options trading activity on Friday. Stock investors bought 145,781 call options on the company. This represents an increase of approximately 1,700% compared to the average volume of 8,099 call options.

Hedge Funds Weigh In On XP

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in shares of XP during the first quarter worth about $3,071,000. Lazard Asset Management LLC raised its holdings in shares of XP by 244.9% in the 1st quarter. Lazard Asset Management LLC now owns 206,689 shares of the company's stock worth $3,935,000 after acquiring an additional 146,763 shares during the last quarter. Verde Servicos Internacionais S.A. bought a new position in XP in the 1st quarter valued at about $3,216,000. Hsbc Holdings PLC lifted its position in XP by 876.6% in the 1st quarter. Hsbc Holdings PLC now owns 1,062,720 shares of the company's stock valued at $20,179,000 after acquiring an additional 953,902 shares in the last quarter. Finally, Quantinno Capital Management LP boosted its stake in XP by 44.9% during the 1st quarter. Quantinno Capital Management LP now owns 209,252 shares of the company's stock valued at $3,984,000 after purchasing an additional 64,829 shares during the last quarter. Institutional investors own 59.15% of the company's stock.

XP Price Performance

Shares of XP opened at $20.19 on Friday. XP has a 52-week low of $14.80 and a 52-week high of $23.13. The company has a debt-to-equity ratio of 0.07, a quick ratio of 4.80 and a current ratio of 4.80. The business's 50 day moving average price is $17.50 and its two-hundred day moving average price is $17.81. The firm has a market cap of $10.85 billion, a PE ratio of 10.57, a price-to-earnings-growth ratio of 0.53 and a beta of 1.08.

XP (NASDAQ:XP - Get Free Report) last announced its quarterly earnings data on Monday, August 17th. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.50 by $0.03. The company had revenue of $943.55 million during the quarter, compared to the consensus estimate of $935.15 million. XP had a net margin of 27.20% and a return on equity of 22.19%. The company's quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter last year, the firm posted $2.46 EPS. On average, equities analysts anticipate that XP will post 2.07 EPS for the current year.

Analyst Ratings Changes

XP has been the topic of several recent research reports. Weiss Ratings raised XP from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, September 2nd. UBS Group lowered their price objective on XP from $28.00 to $25.00 and set a "buy" rating for the company in a research report on Wednesday, June 3rd. Finally, Itau BBA Securities raised shares of XP from a "market perform" rating to an "outperform" rating and set a $22.00 target price for the company in a research report on Monday, August 31st. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $23.00.

XP Company Profile

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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