XP (NASDAQ:XP) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

XP (NASDAQ:XP) released its quarterly earnings results on Monday. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.03, Zacks reports. XP had a return on equity of 22.51% and a net margin of 27.40%.

XP Stock Down 0.8%

Shares of XP traded down $0.12 during trading hours on Monday, hitting $15.70. The company had a trading volume of 5,733,471 shares, compared to its average volume of 5,900,312. The stock has a market capitalization of $8.44 billion, a price-to-earnings ratio of 8.67, a P/E/G ratio of 0.46 and a beta of 1.10. The firm has a fifty day moving average price of $16.22 and a 200-day moving average price of $18.15. XP has a 52-week low of $14.80 and a 52-week high of $23.13. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.66 and a current ratio of 6.66.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. UBS Group lowered their price objective on XP from $28.00 to $25.00 and set a “buy” rating for the company in a research report on Wednesday, June 3rd. Zacks Research downgraded shares of XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Finally, Weiss Ratings upgraded shares of XP from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, XP currently has a consensus rating of “Moderate Buy” and an average target price of $23.33.

Institutional Trading of XP

Institutional investors and hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its holdings in XP by 65.4% during the 2nd 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. SummitTX Capital L.P. raised its holdings in shares of XP by 2.8% during the 4th quarter. SummitTX Capital L.P. now owns 30,978 shares of the company’s stock worth $507,000 after acquiring an additional 857 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of XP by 1.6% during the 3rd quarter. California State Teachers Retirement System now owns 54,107 shares of the company’s stock worth $1,017,000 after acquiring an additional 866 shares in the last quarter. Verition Fund Management LLC boosted its position in shares of XP by 1.0% during the 4th quarter. Verition Fund Management LLC now owns 151,819 shares of the company’s stock valued at $2,485,000 after acquiring an additional 1,519 shares during the last quarter. Finally, Royal London Asset Management Ltd. boosted its position in shares of XP by 0.5% during the 4th quarter. Royal London Asset Management Ltd. now owns 333,300 shares of the company’s stock valued at $5,456,000 after acquiring an additional 1,600 shares during the last quarter. 59.15% of the stock is currently owned by institutional investors.

XP declared that its board has initiated a stock repurchase program on Tuesday, May 19th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s board of directors believes its shares are 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.