XP (NASDAQ:XP) Trading 4.2% Higher - Here's What Happened

Key Points

• XP shares rose 4.2% to $18.41, reaching an intraday high of $18.58, though trading volume was 68% below the stock’s average daily volume.
• Analyst sentiment remains positive: XP has a consensus rating of “Moderate Buy” and a $23.00 average price target, despite UBS lowering its target to $25 and Weiss Ratings downgrading the stock’s hold rating.
• XP exceeded quarterly expectations with earnings of $0.53 per share versus the $0.50 consensus and revenue of $943.55 million, up 8.3% year over year; institutional investors own 59.15% of the stock.

XP Inc. (NASDAQ:XP - Get Free Report) rose 4.2% during trading on Monday . The company traded as high as $18.58 and last traded at $18.41. 1,886,332 shares were traded during trading, a decline of 68% from the average daily volume of 5,847,335 shares. The stock had previously closed at $17.66.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. UBS Group cut their price target on shares of XP from $28.00 to $25.00 and set a "buy" rating on the stock in a report on Wednesday, June 3rd. Itau BBA Securities raised shares of XP from a "market perform" rating to an "outperform" rating and set a $22.00 price objective on the stock in a research report on Monday. Finally, Weiss Ratings lowered shares of XP from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, August 18th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $23.00.

XP Trading Up 3.8%

The company has a debt-to-equity ratio of 0.07, a current ratio of 4.80 and a quick ratio of 4.80. The firm has a fifty day simple moving average of $16.50 and a two-hundred day simple moving average of $17.94. The firm has a market capitalization of $9.85 billion, a P/E ratio of 9.60, a price-to-earnings-growth ratio of 0.51 and a beta of 1.10.

XP (NASDAQ:XP - Get Free Report) last issued its earnings results on Monday, August 17th. The company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.03. XP had a return on equity of 22.19% and a net margin of 27.20%.The firm had revenue of $943.55 million for the quarter, compared to analyst estimates of $935.15 million. During the same period in the previous year, the company posted $2.46 earnings per share. The business's revenue was up 8.3% on a year-over-year basis. On average, equities research analysts anticipate that XP Inc. will post 2.11 earnings per share for the current fiscal year.

XP declared that its board has authorized a stock repurchase program on Tuesday, May 19th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On XP

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in XP. EverSource Wealth Advisors LLC boosted its position in XP by 65.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company's stock worth $33,000 after purchasing an additional 646 shares during the period. Caitong International Asset Management Co. Ltd increased its stake in shares of XP by 1,783.3% in the third quarter. Caitong International Asset Management Co. Ltd now owns 2,825 shares of the company's stock worth $53,000 after purchasing an additional 2,675 shares in the last quarter. Parallel Advisors LLC raised its position in shares of XP by 117.3% in the first quarter. Parallel Advisors LLC now owns 3,288 shares of the company's stock valued at $63,000 after purchasing an additional 1,775 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in shares of XP in the fourth quarter valued at approximately $55,000. Finally, Vestcor Inc purchased a new stake in shares of XP during the 3rd quarter valued at approximately $64,000. 59.15% of the stock is currently owned by institutional investors.

About XP

XP Inc provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.

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