XP (NASDAQ:XP) Shares Up 5.1% – Still a Buy?

XP Inc. (NASDAQ:XP) shares were up 5.1% on Thursday . The stock traded as high as $19.88 and last traded at $20.0160. 2,030,161 shares traded hands during trading, a decline of 66% from the average session volume of 5,982,065 shares. The stock had previously closed at $19.04.

Analysts Set New Price Targets

Several research firms recently weighed in on XP. UBS Group reduced their price objective on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a research note on Wednesday, June 3rd. Itau BBA Securities upgraded XP from a “market perform” rating to an “outperform” rating and set a $22.00 price objective for the company in a report on Monday, August 31st. Finally, Weiss Ratings raised shares of XP from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, September 2nd. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, XP currently has an average rating of “Moderate Buy” and an average target price of $23.00.

XP Trading Up 5.0%

The company has a market capitalization of $10.75 billion, a P/E ratio of 10.45, a PEG ratio of 0.58 and a beta of 1.08. The business has a fifty day moving average of $17.06 and a 200-day moving average of $17.91. The company has a debt-to-equity ratio of 0.07, a quick ratio of 4.80 and a current ratio of 4.80.

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

XP announced that its board has approved a share repurchase plan on Tuesday, May 19th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On XP

A number of institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its holdings in XP by 692.8% during the first quarter. AQR Capital Management LLC now owns 217,557 shares of the company’s stock worth $2,991,000 after buying an additional 190,115 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of XP by 174.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,923 shares of the company’s stock valued at $100,000 after buying an additional 4,400 shares during the period. EverSource Wealth Advisors LLC lifted its stake in XP by 65.4% in the 2nd 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. Jump Financial LLC purchased a new stake in shares of XP in the second quarter worth $857,000. Finally, California Public Employees Retirement System boosted its position in shares of XP by 7.2% during the 2nd quarter. California Public Employees Retirement System now owns 723,423 shares of the company’s stock valued at $14,613,000 after acquiring an additional 48,765 shares during the last quarter. 59.15% of the stock is owned by institutional investors.

XP Company Profile

XP Inc (NASDAQ: XP) is a Brazilian financial services company that operates an investment platform serving individual investors, financial advisors, corporations and institutional clients. Through its platform and affiliated brands, the company provides access to a broad range of financial products and investment solutions.

Its services include brokerage and custody, investment advisory, portfolio management, banking and credit products, insurance, retirement solutions and financial education.