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

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

Analysts Set New Price Targets

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

XP Trading Down 4.5%

The company has a market cap of $8.03 billion, a PE ratio of 8.25, a price-to-earnings-growth ratio of 0.50 and a beta of 1.11. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.66 and a quick ratio of 6.66. The company has a 50-day moving average of $18.33 and a 200 day moving average of $18.59.

XP Increases Dividend

The business 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 $0.20 dividend. This is an increase from XP’s previous annual dividend of $0.18. This represents a yield of 268.0%. The ex-dividend date is Wednesday, June 10th. XP’s dividend payout ratio (DPR) is 9.94%.

XP declared that its Board of Directors has initiated a stock buyback plan on Tuesday, May 19th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. PNC Financial Services Group Inc. boosted its position in shares of XP by 4.3% during the fourth quarter. PNC Financial Services Group Inc. now owns 13,855 shares of the company’s stock valued at $227,000 after buying an additional 573 shares during the period. EverSource Wealth Advisors LLC boosted 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 buying an additional 646 shares during the period. SummitTX Capital L.P. boosted its position in shares of XP by 2.8% during the fourth quarter. SummitTX Capital L.P. now owns 30,978 shares of the company’s stock valued at $507,000 after buying an additional 857 shares during the period. California State Teachers Retirement System boosted its position in shares of XP by 1.6% during the third quarter. California State Teachers Retirement System now owns 54,107 shares of the company’s stock valued at $1,017,000 after buying an additional 866 shares during the period. Finally, Inspire Investing LLC boosted its position in shares of XP by 1.0% during the first quarter. Inspire Investing LLC now owns 89,121 shares of the company’s stock valued at $1,697,000 after buying an additional 906 shares during the period. Hedge funds and other institutional investors own 59.15% of the company’s stock.

About XP

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.