XP (NASDAQ:XP) Reaches New 12-Month Low – Here’s Why

XP Inc. (NASDAQ:XP)’s stock price hit a new 52-week low on Friday . The company traded as low as $15.46 and last traded at $15.4160, with a volume of 1766263 shares. The stock had previously closed at $15.64.

Wall Street Analyst Weigh In

Several research firms recently weighed in on XP. Zacks Research cut XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Weiss Ratings raised XP from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Finally, UBS Group cut 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. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $22.75.

XP Stock Down 2.0%

The company has a current ratio of 6.66, a quick ratio of 6.66 and a debt-to-equity ratio of 0.02. The firm has a market cap of $8.24 billion, a price-to-earnings ratio of 8.46, a PEG ratio of 0.49 and a beta of 1.11. The firm has a 50-day moving average of $18.58 and a two-hundred day moving average of $18.67.

XP Increases Dividend

The company also recently declared an annual dividend, which will be paid on Thursday, June 18th. Shareholders of record on Wednesday, June 10th will be issued a $0.20 dividend. This is a positive change from XP’s previous annual dividend of $0.18. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a yield of 115.0%. XP’s payout ratio is currently 9.94%.

XP declared that its board has approved a stock repurchase plan on Tuesday, May 19th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On XP

Several large investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC raised its holdings in XP by 117.3% in the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company’s stock valued at $63,000 after acquiring an additional 1,775 shares in the last quarter. Oaktree Fund Advisors LLC raised its holdings in 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 acquiring an additional 12,445 shares in the last quarter. Bank of America Corp DE raised its holdings in XP by 33.4% in the 1st quarter. Bank of America Corp DE now owns 5,147,245 shares of the company’s stock valued at $98,004,000 after acquiring an additional 1,289,393 shares in the last quarter. Janus Henderson Group PLC acquired a new position in XP in the 1st quarter valued at approximately $3,559,000. Finally, Strategic Investment Advisors MI acquired a new position in XP in the 1st quarter valued at approximately $126,000. Institutional investors and hedge funds own 59.15% of the company’s stock.

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.