XP (NASDAQ:XP) Reaches New 12-Month High – Should You Buy?

XP Inc. (NASDAQ:XP)’s share price hit a new 52-week high during mid-day trading on Monday. The company traded as high as $25.14 and last traded at $27.4870, with a volume of 449880 shares traded. The stock had previously closed at $21.50.

Analyst Ratings Changes

A number of equities research analysts have recently commented on XP shares. Citigroup increased their price target on shares of XP from $23.00 to $25.00 and gave the company a “buy” rating in a report on Tuesday, September 29th. Weiss Ratings upgraded shares of XP from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, September 2nd. Itau BBA Securities raised XP from a “market perform” rating to an “outperform” rating and set a $22.00 price objective on the stock in a research report on Monday, August 31st. Finally, JPMorgan Chase & Co. increased their target price on XP from $26.00 to $38.00 and gave the company an “overweight” rating in a research note on Tuesday. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, XP presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.40.

XP Trading Up 5.6%

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 stock’s 50-day moving average is $18.85 and its two-hundred day moving average is $18.03. The company has a market cap of $15.98 billion, a P/E ratio of 15.57, a P/E/G ratio of 0.75 and a beta of 1.01.

XP (NASDAQ:XP) last announced its earnings results on Monday, August 17th. The company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.03. The business had revenue of $943.55 million during the quarter, compared to analyst estimates of $935.15 million. XP had a net margin of 27.20% and a return on equity of 22.19%. The company’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the previous year, the business earned $2.46 EPS. As a group, equities research analysts predict that XP Inc. will post 2.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In other XP news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $19.58, for a total value of $2,413,372.06. Following the transaction, the director owned 1,500,000 shares of the company’s stock, valued at approximately $29,370,000. This represents a 7.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Institutional Investors Weigh In On XP

Several hedge funds and other institutional investors have recently made changes to their positions in XP. EverSource Wealth Advisors LLC boosted its holdings in shares of XP by 46.2% in the first quarter. EverSource Wealth Advisors LLC now owns 2,471 shares of the company’s stock worth $47,000 after buying an additional 781 shares during the last quarter. Parallel Advisors LLC increased its holdings in 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 buying an additional 1,775 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in XP during the second quarter valued at approximately $91,000. Strategic Investment Advisors MI bought a new position in XP in the first quarter worth approximately $126,000. Finally, 9823 Capital L.P. bought a new position in XP in the fourth quarter worth approximately $183,000. Hedge funds and other institutional investors own 59.15% of the company’s stock.

About XP

XP Inc is a Brazil-based financial services platform that provides investment, banking and related financial products to individuals, businesses and institutional clients. Through its digital platforms and network of financial professionals, the company offers access to investments such as stocks, bonds, mutual funds, exchange-traded funds, real estate funds, retirement products and insurance.

The company operates a portfolio of brands that includes XP, Rico and Clear, serving customers with different investment needs and levels of experience.