XP (NASDAQ:XP) Sets New 1-Year Low - Here's Why

Key Points

• XP shares plunged 51.6%, hitting a new 52-week low of $14.59 and trading far below their 50-day and 200-day moving averages.
• Despite the selloff, XP reported quarterly earnings and revenue above analyst expectations, with revenue up 8.3% year over year and analysts forecasting $2.08 in annual EPS.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $28.80, although a company director recently sold 123,257 shares at an average price of $19.58.

XP Inc. (NASDAQ:XP - Get Free Report)'s stock price reached a new 52-week low during trading on Monday. The company traded as low as $14.59 and last traded at $13.7820, with a volume of 6,585,116 shares. The stock had previously closed at $30.41.

Wall Street Analysts Forecast Growth

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

XP Stock Down 51.6%

The company has a quick ratio of 4.80, a current ratio of 4.80 and a debt-to-equity ratio of 0.07. The company has a market cap of $7.91 billion, a PE ratio of 7.74, a PEG ratio of 0.70 and a beta of 1.01. The company's fifty day moving average is $22.54 and its 200-day moving average is $19.12.

XP (NASDAQ:XP - Get Free Report) last released its quarterly earnings results on Monday, August 17th. The company reported $0.53 earnings per share 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 the consensus estimate of $935.15 million. During the same period last year, the firm earned $2.46 earnings per share. The company's quarterly revenue was up 8.3% on a year-over-year basis. On average, analysts predict that XP Inc. will post 2.08 EPS for the current year.

Insider Activity

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

Institutional Trading of XP

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. ARGA Investment Management LP raised its stake in shares of XP by 4.0% during the 1st quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company's stock valued at $394,112,000 after buying an additional 799,048 shares during the last quarter. Ninety One UK Ltd lifted its position in shares of XP by 23.6% during the 3rd quarter. Ninety One UK Ltd now owns 9,962,623 shares of the company's stock valued at $209,165,000 after buying an additional 1,904,034 shares in the last quarter. Bank of America Corp DE grew its stake in XP by 33.4% in the 1st quarter. Bank of America Corp DE now owns 5,147,245 shares of the company's stock valued at $98,004,000 after acquiring an additional 1,289,393 shares during the period. Ninety One North America Inc. increased its holdings in XP by 1.2% in the 3rd quarter. Ninety One North America Inc. now owns 1,843,127 shares of the company's stock worth $38,696,000 after acquiring an additional 21,082 shares in the last quarter. Finally, Sei Investments Co. increased its holdings in XP by 2.4% in the 1st quarter. Sei Investments Co. now owns 1,626,489 shares of the company's stock worth $30,968,000 after acquiring an additional 37,929 shares in the last quarter. Institutional investors and hedge funds own 59.15% of the company's stock.

XP Company Profile

XP Inc is a Brazilian financial services company that operates a technology-driven investment and financial products platform. Through its digital channels and network of advisors, the company offers access to products including stocks, bonds, investment funds, exchange-traded funds, insurance and retirement products. It serves individual investors, businesses, institutional clients and independent financial advisors.

The company's principal brands and businesses include XP, Rico and Clear, which provide brokerage and investment services to different customer segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.