XP (NASDAQ:XP) Reaches New 1-Year Low – Time to Sell?

XP Inc. (NASDAQ:XP)’s stock price reached a new 52-week low during trading on Thursday . The company traded as low as $14.90 and last traded at $14.94, with a volume of 8646332 shares changing hands. The stock had previously closed at $15.64.

Analysts Set New Price Targets

A number of equities research analysts have commented on XP shares. UBS Group decreased their price target on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a report on Wednesday, June 3rd. Zacks Research cut XP from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Finally, Weiss Ratings raised XP from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, XP presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.75.

XP Trading Down 4.5%

The company has a quick ratio of 6.66, a current ratio of 6.66 and a debt-to-equity ratio of 0.02. The stock has a fifty day simple moving average of $18.33 and a 200 day simple moving average of $18.59. The firm has a market capitalization of $8.03 billion, a P/E ratio of 8.25, a PEG ratio of 0.50 and a beta of 1.11.

XP Increases Dividend

The company also recently disclosed an annual dividend, which will be paid on Thursday, June 18th. Stockholders of record on Wednesday, June 10th will be given a dividend of $0.20 per share. The ex-dividend date is Wednesday, June 10th. This is a positive change from XP’s previous annual dividend of $0.18. This represents a dividend yield of 268.0%. XP’s dividend payout ratio (DPR) is 9.94%.

XP declared that its Board of Directors has authorized a share buyback plan on Tuesday, May 19th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC grew its position in shares of XP by 65.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock valued at $33,000 after purchasing an additional 646 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in shares of XP during the fourth quarter valued at about $34,000. Caitong International Asset Management Co. Ltd grew its position in shares of XP by 1,783.3% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,825 shares of the company’s stock valued at $53,000 after purchasing an additional 2,675 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in shares of XP during the fourth quarter valued at about $55,000. Finally, Parallel Advisors LLC grew its position in shares of XP by 117.3% during the first quarter. Parallel Advisors LLC now owns 3,288 shares of the company’s stock valued at $63,000 after purchasing an additional 1,775 shares in the last quarter. Hedge funds and other institutional investors 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.