XP Inc. (NASDAQ:XP) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of XP Inc. (NASDAQ:XP) have earned an average rating of “Moderate Buy” from the five research firms that are covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $23.3333.

XP has been the topic of a number of recent analyst reports. UBS Group cut their target price on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a research report on Wednesday, June 3rd. Zacks Research lowered shares of XP from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Finally, Weiss Ratings raised shares of XP from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Parallel Advisors LLC boosted its position in XP by 117.3% during 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. Oaktree Fund Advisors LLC increased its holdings in shares of XP by 6.7% in the 1st quarter. Oaktree Fund Advisors LLC now owns 199,519 shares of the company’s stock valued at $3,799,000 after purchasing an additional 12,445 shares during the period. Bank of America Corp DE lifted its position in shares of XP by 33.4% in the first quarter. Bank of America Corp DE now owns 5,147,245 shares of the company’s stock worth $98,004,000 after purchasing an additional 1,289,393 shares in the last quarter. Janus Henderson Group PLC purchased a new stake in shares of XP in the first quarter worth approximately $3,559,000. Finally, Strategic Investment Advisors MI acquired a new stake in shares of XP during the first quarter worth approximately $126,000. 59.15% of the stock is owned by institutional investors and hedge funds.

XP Trading Down 0.2%

Shares of NASDAQ:XP opened at $16.20 on Tuesday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.66 and a current ratio of 6.66. The stock has a market capitalization of $8.71 billion, a price-to-earnings ratio of 8.95, a PEG ratio of 0.47 and a beta of 1.10. XP has a 1-year low of $14.80 and a 1-year high of $23.13. The company has a 50 day moving average price of $16.23 and a 200 day moving average price of $18.26.

XP Increases Dividend

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

XP announced that its Board of Directors has approved a stock buyback program on Tuesday, May 19th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership 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.