XP Inc. (NASDAQ:XP) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• XP Inc. has a “Moderate Buy” consensus rating among five analysts, with three buys and two holds. The average 12-month price target is $23.33, compared with the stock’s recent price of $16.20.
• Institutional investors and hedge funds own approximately 59.15% of XP’s shares, with several firms recently increasing their positions or initiating new stakes.
• XP increased its annual dividend to $0.20 from $0.18, while reporting a 22.1% payout ratio. The company also authorized a stock repurchase program, though the announced authorization amount was listed as $0.00.

XP Inc. (NASDAQ:XP - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the five analysts that are presently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $23.3333.

A number of analysts have weighed in on the stock. Zacks Research cut shares of XP from a "strong-buy" rating to a "hold" rating in a report on Friday, May 1st. UBS Group lowered their price objective on shares of XP from $28.00 to $25.00 and set a "buy" rating for the company in a research report on Wednesday, June 3rd. Finally, Weiss Ratings raised shares of XP from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th.

Hedge Funds Weigh In On XP

Hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC grew its stake 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 worth $33,000 after purchasing an additional 646 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its stake in XP by 1,783.3% during the 3rd 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 during the period. Aster Capital Management DIFC Ltd bought a new stake in shares of XP during the 4th quarter worth about $55,000. Parallel Advisors LLC lifted its stake in shares of XP by 117.3% in the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company's stock worth $63,000 after acquiring an additional 1,775 shares during the period. Finally, Vestcor Inc acquired a new position in shares of XP during the third quarter valued at approximately $64,000. 59.15% of the stock is currently owned by institutional investors and hedge funds.

XP Price Performance

Shares of XP opened at $16.20 on Tuesday. The firm has a market cap of $8.71 billion, a price-to-earnings ratio of 8.95, a PEG ratio of 0.47 and a beta of 1.10. The stock has a 50 day moving average of $16.23 and a 200-day moving average of $18.26. The company has a current ratio of 6.66, a quick ratio of 6.66 and a debt-to-equity ratio of 0.02. XP has a 52 week low of $14.80 and a 52 week high of $23.13.

XP Increases Dividend

The business also recently announced an annual dividend, which was paid on Thursday, June 18th. Shareholders of record on Wednesday, June 10th were given a $0.20 dividend. This is a boost from XP's previous annual dividend of $0.18. This represents a yield of 268.0%. The ex-dividend date of this dividend was Wednesday, June 10th. XP's dividend payout ratio is 22.10%.

XP declared that its board has approved 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 buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its shares are undervalued.

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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