Royal Bank of Canada Cuts Stake in XP Inc. $XP

Royal Bank of Canada cut its holdings in shares of XP Inc. (NASDAQ:XP) by 96.3% during the first quarter, Holdings Channel.com reports. The institutional investor owned 17,220 shares of the company’s stock after selling 452,328 shares during the period. Royal Bank of Canada’s holdings in XP were worth $328,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in XP by 29.6% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 457,119 shares of the company’s stock worth $7,396,000 after purchasing an additional 104,395 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in XP in the 1st quarter valued at about $3,071,000. Pictet Asset Management Holding SA raised its position in XP by 11.6% in the 4th quarter. Pictet Asset Management Holding SA now owns 539,486 shares of the company’s stock valued at $8,831,000 after purchasing an additional 56,090 shares in the last quarter. Hussman Strategic Advisors Inc. acquired a new stake in XP in the 4th quarter valued at about $1,375,000. Finally, Lazard Asset Management LLC boosted its stake in shares of XP by 244.9% in the 1st quarter. Lazard Asset Management LLC now owns 206,689 shares of the company’s stock valued at $3,935,000 after buying an additional 146,763 shares during the period. Institutional investors and hedge funds own 59.15% of the company’s stock.

Wall Street Analyst Weigh In

XP has been the subject of a number of analyst reports. UBS Group lowered 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, June 3rd. Weiss Ratings downgraded shares of XP from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 18th. Finally, Zacks Research cut shares of XP from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $23.33.

XP Stock Down 0.7%

Shares of NASDAQ XP opened at $17.68 on Friday. The company has a market capitalization of $9.50 billion, a price-to-earnings ratio of 9.26, a price-to-earnings-growth ratio of 0.51 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 4.80 and a quick ratio of 4.80. The business has a 50-day moving average of $16.45 and a two-hundred day moving average of $17.96. XP Inc. has a 1 year low of $14.80 and a 1 year high of $23.13.

XP (NASDAQ:XP) last released its quarterly earnings data on Monday, August 17th. The company reported $0.53 EPS for the quarter, beating 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 quarter in the prior year, the business posted $2.46 EPS. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. On average, analysts forecast that XP Inc. will post 2.11 earnings per share for the current fiscal year.

XP announced that its board has authorized a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

XP 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.