XP Inc. (NASDAQ:XP) Receives Average Rating of “Moderate Buy” from Analysts

Shares of XP Inc. (NASDAQ:XP) have been assigned a consensus recommendation of “Moderate Buy” from the six brokerages that are currently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $22.75.

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

Institutional Investors Weigh In On XP

Large investors have recently modified their holdings of the business. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in shares of XP by 29.6% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 457,119 shares of the company’s stock valued at $7,396,000 after buying an additional 104,395 shares during the period. Massachusetts Financial Services Co. MA increased its stake in shares of XP by 11.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 12,263,021 shares of the company’s stock valued at $200,746,000 after buying an additional 1,300,982 shares during the period. Hussman Strategic Advisors Inc. acquired a new position in shares of XP in the fourth quarter valued at approximately $1,375,000. Pictet Asset Management Holding SA increased its stake in shares of XP by 11.6% in the fourth quarter. Pictet Asset Management Holding SA now owns 539,486 shares of the company’s stock valued at $8,831,000 after buying an additional 56,090 shares during the period. Finally, Wealth High Governance Capital Ltda acquired a new position in shares of XP in the fourth quarter valued at approximately $9,990,000. Institutional investors and hedge funds own 59.15% of the company’s stock.

XP Price Performance

Shares of NASDAQ XP opened at $15.30 on Monday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.66 and a current ratio of 6.66. XP has a 52 week low of $14.80 and a 52 week high of $23.13. The stock has a market capitalization of $8.22 billion, a P/E ratio of 8.45, a PEG ratio of 0.49 and a beta of 1.11. The stock’s fifty day moving average is $17.87 and its 200 day moving average is $18.44.

XP Increases Dividend

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

XP announced that its Board of Directors has authorized a share buyback plan on Tuesday, May 19th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

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.