XP (NASDAQ:XP) Sets New 52-Week High - Still a Buy?

Key Points

• XP shares reached a new 52-week high of $32.58, substantially above their 50-day and 200-day moving averages of $19.68 and $18.28, respectively.
• Analyst sentiment is positive: five analysts rate XP a Buy and two rate it a Hold, producing a “Moderate Buy” consensus. Recent price targets rose as high as $38, though the average target of $28.80 is below the current share price.
• XP exceeded quarterly earnings and revenue estimates, reporting $0.53 EPS and $943.55 million in revenue, while revenue increased 8.3% year over year. Institutional ownership stands at 59.15%, with several investors recently increasing their stakes.

Shares of XP Inc. (NASDAQ:XP - Get Free Report) hit a new 52-week high during mid-day trading on Monday. The company traded as high as $32.58 and last traded at $32.3980, with a volume of 549,257 shares changing hands. The stock had previously closed at $32.22.

Wall Street Analysts Forecast Growth

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

XP Stock Performance

The company has a 50-day moving average of $19.68 and a 200 day moving average of $18.28. 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 firm has a market capitalization of $17.42 billion, a PE ratio of 16.98, a PEG ratio of 0.86 and a beta of 1.01.

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

Insider Activity at XP

In other news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the business's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total transaction of $2,413,372.06. Following the completion of the transaction, the director owned 1,500,000 shares of the company's stock, valued at approximately $29,370,000. The trade was a 7.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Legacy Wealth Asset Management LLC lifted its stake in XP by 1.5% during the third quarter. Legacy Wealth Asset Management LLC now owns 33,599 shares of the company's stock worth $705,000 after purchasing an additional 510 shares during the last quarter. National Pension Service boosted its holdings in shares of XP by 94.1% in the 2nd quarter. National Pension Service now owns 207,699 shares of the company's stock worth $3,377,000 after purchasing an additional 100,677 shares in the last quarter. Engineers Gate Manager LP increased its position in shares of XP by 161.9% during the 2nd quarter. Engineers Gate Manager LP now owns 168,230 shares of the company's stock valued at $2,735,000 after purchasing an additional 103,990 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of XP during the 2nd quarter valued at about $91,000. Finally, Squarepoint Ops LLC raised its holdings in shares of XP by 83.3% during the 2nd quarter. Squarepoint Ops LLC now owns 165,235 shares of the company's stock valued at $2,687,000 after buying an additional 75,114 shares in the last quarter. 59.15% of the stock is currently owned by institutional investors.

XP Company 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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