XP (NASDAQ:XP) Stock Price Breaks Below 200 Day Moving Average - What's Next?

Key Points

• XP shares fell below their 200-day moving average of $19.24, trading as low as $13.78 and last changing hands at $15.70; the stock is down 48.4%.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with five Buy ratings, two Holds and an average price target of $28.80. JPMorgan and UBS recently raised their targets to $38 and $37, respectively.
• XP’s latest quarterly results modestly exceeded expectations, with EPS of $0.53 versus $0.50 expected and revenue of $943.55 million, up 8.3% year over year.

XP Inc. (NASDAQ:XP - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $19.24 and traded as low as $13.78. XP shares last traded at $15.70, with a volume of 132,781,756 shares changing hands.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Citigroup increased their price objective on shares of XP from $23.00 to $25.00 and gave the company a "buy" rating in a research report on Tuesday, September 29th. Weiss Ratings raised shares of XP from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, September 2nd. 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 target on the stock in a report on Monday, August 31st. Finally, UBS Group increased their price target on shares of XP from $25.00 to $37.00 and gave the company a "buy" rating in a report on Thursday, October 8th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $28.80.

XP Stock Down 48.4%

The company has a current ratio of 4.80, a quick ratio of 4.80 and a debt-to-equity ratio of 0.07. The firm's 50 day simple moving average is $22.46 and its two-hundred day simple moving average is $19.24. The firm has a market cap of $8.44 billion, a price-to-earnings ratio of 8.22, a PEG ratio of 0.70 and a beta of 1.01.

XP (NASDAQ:XP - Get Free Report) last posted its quarterly earnings data on Monday, August 17th. The company reported $0.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.03. XP had a net margin of 27.20% and a return on equity of 22.19%. The firm had revenue of $943.55 million during the quarter, compared to the consensus estimate of $935.15 million. During the same quarter in the previous year, the firm posted $2.46 EPS. The business's revenue for the quarter was up 8.3% compared to the same quarter last year. On average, equities analysts forecast that XP Inc. will post 2.08 EPS for the current year.

Insiders Place Their Bets

In other news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the company's stock in a transaction on 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 sale, the director directly owned 1,500,000 shares in the company, valued at approximately $29,370,000. This represents a 7.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Ninety One UK Ltd raised its stake in XP by 23.6% in 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 in the last quarter. Bank of America Corp DE increased its holdings 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 buying an additional 1,289,393 shares during the period. Hsbc Holdings PLC increased its holdings 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 buying an additional 953,902 shares during the period. ARGA Investment Management LP increased its holdings in XP by 4.0% in 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 period. Finally, Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of XP in the 1st quarter valued at approximately $15,184,000. Institutional investors 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.