XP (NASDAQ:XP) Reaches New 52-Week Low – Should You Sell?

XP Inc. (NASDAQ:XP) shares hit a new 52-week low during trading on Monday. The stock traded as low as $14.59 and last traded at $13.7820, with a volume of 6,585,116 shares traded. The stock had previously closed at $30.41.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Citigroup raised their target price on XP from $23.00 to $25.00 and gave the stock a “buy” rating in a research note on Tuesday, September 29th. JPMorgan Chase & Co. lifted their price target on shares of XP from $26.00 to $38.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 6th. Weiss Ratings raised XP from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, September 2nd. UBS Group boosted their price target on XP from $25.00 to $37.00 and gave the company a “buy” rating in a research report on Thursday, October 8th. Finally, Itau BBA Securities upgraded XP from a “market perform” rating to an “outperform” rating and set a $22.00 price target on the stock in a research note on Monday, August 31st. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $28.80.

XP Stock Performance

The company has a quick ratio of 4.80, a current ratio of 4.80 and a debt-to-equity ratio of 0.07. The company has a market cap of $7.91 billion, a price-to-earnings ratio of 7.74, a PEG ratio of 0.70 and a beta of 1.01. The stock has a 50 day simple moving average of $22.54 and a 200 day simple moving average of $19.12.

XP (NASDAQ:XP) last released its quarterly earnings results on Monday, August 17th. The company reported $0.53 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.03. XP had a net margin of 27.20% and a return on equity of 22.19%. The business had revenue of $943.55 million during the quarter, compared to the consensus estimate of $935.15 million. During the same quarter last year, the company earned $2.46 earnings per share. The business’s quarterly revenue was up 8.3% compared to the same quarter last year. As a group, analysts predict that XP Inc. will post 2.08 EPS for the current year.

Insider Activity

In other XP news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $19.58, for a total transaction of $2,413,372.06. Following the sale, the director directly owned 1,500,000 shares of the company’s stock, valued at $29,370,000. The trade was a 7.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. ARGA Investment Management LP increased its position in XP by 4.0% in the first quarter. ARGA Investment Management LP now owns 20,699,135 shares of the company’s stock worth $394,112,000 after purchasing an additional 799,048 shares during the period. Ninety One UK Ltd raised its holdings in XP by 23.6% in the 3rd quarter. Ninety One UK Ltd now owns 9,962,623 shares of the company’s stock valued at $209,165,000 after acquiring an additional 1,904,034 shares during the period. Bank of America Corp DE increased its position in XP by 33.4% during the 1st quarter. Bank of America Corp DE now owns 5,147,245 shares of the company’s stock worth $98,004,000 after buying an additional 1,289,393 shares during the period. Ninety One North America Inc. raised its stake in XP by 1.2% in the 3rd quarter. Ninety One North America Inc. now owns 1,843,127 shares of the company’s stock worth $38,696,000 after purchasing an additional 21,082 shares in the last quarter. Finally, Sei Investments Co. lifted its holdings in shares of XP by 2.4% in the first quarter. Sei Investments Co. now owns 1,626,489 shares of the company’s stock worth $30,968,000 after acquiring an additional 37,929 shares during the last quarter. Institutional investors and hedge funds own 59.15% of the company’s stock.

About XP

XP Inc is a Brazilian financial services company that operates a technology-driven investment and financial products platform. Through its digital channels and network of advisors, the company offers access to products including stocks, bonds, investment funds, exchange-traded funds, insurance and retirement products. It serves individual investors, businesses, institutional clients and independent financial advisors.

The company’s principal brands and businesses include XP, Rico and Clear, which provide brokerage and investment services to different customer segments.