XP (NASDAQ:XP) Stock Price Up 3.7% - Here's What Happened

Key Points

• XP shares rose 3.7% to about $30.62, substantially above their 50-day and 200-day moving averages. Trading volume was approximately 1.06 million shares, down 84% from the average.
• Analyst sentiment improved, with JPMorgan raising its price target to $38 and UBS reiterating a Buy rating with a $37 target. XP has a consensus “Moderate Buy” rating and an average target price of $28.80.
• XP recently exceeded quarterly expectations, reporting $0.53 in earnings per share versus $0.50 expected and $943.55 million in revenue. Institutional investors own 59.15% of the company, while a director recently sold 123,257 shares.

XP Inc. (NASDAQ:XP - Get Free Report)'s stock price traded up 3.7% on Thursday. The company traded as high as $30.50 and last traded at $30.6220. 1,059,596 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 6,473,323 shares. The stock had previously closed at $29.53.

Analyst Upgrades and Downgrades

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

XP Price Performance

The company has a 50-day moving average of $19.12 and a 200-day moving average of $18.11. 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 firm has a market capitalization of $16.28 billion, a price-to-earnings ratio of 15.85, a price-to-earnings-growth ratio of 0.79 and a beta of 1.01.

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

Insider Activity at XP

In related news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the business's stock in a transaction 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 sale, the director directly 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 position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Institutional Trading of XP

Hedge funds and other institutional investors have recently modified their holdings of the company. ARGA Investment Management LP boosted its position in shares of XP by 4.0% during the first quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company's stock worth $394,112,000 after buying an additional 799,048 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in XP by 10.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 11,799,175 shares of the company's stock valued at $193,152,000 after acquiring an additional 1,160,977 shares in the last quarter. Bank of America Corp DE boosted its position in XP by 33.4% during the 1st quarter. Bank of America Corp DE now owns 5,147,245 shares of the company's stock worth $98,004,000 after acquiring an additional 1,289,393 shares during the last quarter. Assenagon Asset Management S.A. boosted its position in XP by 146.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 1,930,445 shares of the company's stock worth $36,756,000 after acquiring an additional 1,146,057 shares during the last quarter. Finally, Sei Investments Co. grew its stake in shares of XP by 2.4% during 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 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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