XP Inc. (NASDAQ:XP) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst consensus: Nine analysts rate XP Inc. a consensus "Moderate Buy" (3 holds, 5 buys, 1 strong buy) with an average 12‑month price target of $22.86; UBS recently raised its target to $28 and Zacks upgraded to "strong‑buy."
• Results and valuation: XP beat quarterly EPS estimates ($0.46 vs. $0.45) with revenue of $806.1M (+10.3% YoY) and strong margins (net margin 27.5%, ROE 23.1%); the stock traded at $19.79, has a P/E of 11.44 and a market cap around $10.6B.

Shares of XP Inc. (NASDAQ:XP - Get Free Report) have received a consensus rating of "Moderate Buy" from the nine analysts that are presently covering the company, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $22.8571.

A number of equities research analysts have recently issued reports on the company. Jefferies Financial Group assumed coverage on XP in a report on Monday, January 19th. They set a "buy" rating and a $22.00 price objective for the company. Weiss Ratings restated a "hold (c)" rating on shares of XP in a report on Monday, December 29th. Zacks Research upgraded XP from a "hold" rating to a "strong-buy" rating in a report on Tuesday, March 3rd. Finally, UBS Group boosted their price objective on XP from $25.00 to $28.00 and gave the stock a "buy" rating in a report on Thursday, April 2nd.

Institutional Investors Weigh In On XP

Hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its position in shares of XP by 65.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company's stock valued at $33,000 after buying an additional 646 shares in the last quarter. FNY Investment Advisers LLC acquired a new stake in shares of XP in the fourth quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd raised its position 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 valued at $53,000 after buying an additional 2,675 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in shares of XP in the fourth quarter valued at approximately $55,000. Finally, Vestcor Inc acquired a new stake in shares of XP in the third quarter valued at approximately $64,000. 59.15% of the stock is currently owned by institutional investors and hedge funds.

XP Stock Performance

XP stock traded up $1.16 during midday trading on Wednesday, reaching $19.79. 8,704,956 shares of the company's stock were exchanged, compared to its average volume of 6,770,372. XP has a 52 week low of $12.23 and a 52 week high of $23.13. The company has a current ratio of 5.36, a quick ratio of 6.12 and a debt-to-equity ratio of 0.01. The company has a market cap of $10.64 billion, a price-to-earnings ratio of 11.44, a price-to-earnings-growth ratio of 0.61 and a beta of 1.26. The firm has a 50-day moving average price of $39.93.

XP (NASDAQ:XP - Get Free Report) last issued its quarterly earnings data on Friday, February 13th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.01. XP had a net margin of 27.51% and a return on equity of 23.08%. The firm had revenue of $806.08 million during the quarter. During the same quarter last year, the business earned $2.23 earnings per share. The company's revenue was up 10.3% on a year-over-year basis. Research analysts forecast that XP will post 1.36 earnings per share for the current year.

XP Company Profile

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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