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

Shares of XP Inc. (NASDAQ:XP) reached a new 52-week low on Friday . The stock traded as low as $15.46 and last traded at $15.4160, with a volume of 1766263 shares changing hands. The stock had previously closed at $15.64.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on XP shares. Zacks Research lowered XP from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 1st. Weiss Ratings upgraded XP from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Finally, UBS Group lowered their price objective on XP from $28.00 to $25.00 and set a “buy” rating on the stock in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, XP presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.75.

XP Stock Performance

The firm has a market capitalization of $8.24 billion, a P/E ratio of 8.46, a price-to-earnings-growth ratio of 0.49 and a beta of 1.11. The stock has a 50-day moving average of $18.58 and a 200 day moving average of $18.67. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.66 and a current ratio of 6.66.

XP Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Thursday, June 18th. Investors of record on Wednesday, June 10th will be given a dividend of $0.20 per share. This is a boost from XP’s previous annual dividend of $0.18. The ex-dividend date is Wednesday, June 10th. This represents a yield of 115.0%. XP’s dividend payout ratio is currently 9.94%.

XP announced that its board has approved a share buyback program on Tuesday, May 19th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On XP

Large investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. increased its holdings in XP by 4.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 13,855 shares of the company’s stock worth $227,000 after purchasing an additional 573 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in XP by 65.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,634 shares of the company’s stock worth $33,000 after purchasing an additional 646 shares in the last quarter. SummitTX Capital L.P. increased its holdings in XP by 2.8% during the 4th quarter. SummitTX Capital L.P. now owns 30,978 shares of the company’s stock worth $507,000 after purchasing an additional 857 shares in the last quarter. California State Teachers Retirement System increased its holdings in XP by 1.6% during the 3rd quarter. California State Teachers Retirement System now owns 54,107 shares of the company’s stock worth $1,017,000 after purchasing an additional 866 shares in the last quarter. Finally, Inspire Investing LLC increased its holdings in XP by 1.0% during the 1st quarter. Inspire Investing LLC now owns 89,121 shares of the company’s stock worth $1,697,000 after purchasing an additional 906 shares in the last quarter. 59.15% of the stock is currently owned by institutional investors.

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.