XP (NASDAQ:XP) Sees Strong Trading Volume – Still a Buy?

Shares of XP Inc. (NASDAQ:XP) saw unusually-high trading volume on Tuesday. 8,076,936 shares changed hands during mid-day trading, an increase of 10% from the average daily volume of 7,357,996 shares. The stock last traded at $16.2820 and had previously closed at $15.70.

Wall Street Analyst Weigh In

A number of research firms have weighed in on XP. UBS Group upped their target price on XP from $25.00 to $37.00 and gave the stock a “buy” rating in a report on Thursday, October 8th. JPMorgan Chase & Co. boosted their price target on XP from $26.00 to $38.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 6th. Weiss Ratings upgraded XP from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, September 2nd. Citigroup downgraded XP from a “buy” rating to a “neutral” rating and set a $15.00 price objective on the stock. in a research report on Tuesday. Finally, Itau BBA Securities upgraded XP from a “market perform” rating to an “outperform” rating and set a $22.00 target price on the stock in a research note on Monday, August 31st. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, XP currently has a consensus rating of “Moderate Buy” and a consensus target price of $26.80.

XP Trading Up 4.5%

The company has a market capitalization of $8.82 billion, a price-to-earnings ratio of 8.53, a P/E/G ratio of 0.70 and a beta of 1.01. 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’s 50 day simple moving average is $22.46 and its two-hundred day simple moving average is $19.24.

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

Insiders Place Their Bets

In related news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the company’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total transaction of $2,413,372.06. Following the transaction, the director directly owned 1,500,000 shares of the company’s stock, valued at $29,370,000. This represents a 7.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link.

Institutional Investors Weigh In On XP

Several institutional investors have recently added to or reduced their stakes in XP. Reyes Financial Architecture Inc. acquired a new position in shares of XP during the third quarter valued at about $29,000. EverSource Wealth Advisors LLC raised its position in shares of XP by 46.2% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,471 shares of the company’s stock valued at $47,000 after purchasing an additional 781 shares during the last quarter. Parallel Advisors LLC boosted its stake in XP by 117.3% in the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company’s stock worth $63,000 after purchasing an additional 1,775 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in XP in the 2nd quarter worth approximately $91,000. Finally, Signaturefd LLC boosted its stake in XP by 12.2% in the 3rd quarter. Signaturefd LLC now owns 6,117 shares of the company’s stock worth $128,000 after purchasing an additional 666 shares in the last quarter. Institutional investors and hedge funds own 59.15% of the company’s stock.

XP Company Profile

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.