XP (NASDAQ:XP) Posts Earnings Results, Beats Estimates By $0.02 EPS

XP (NASDAQ:XP) posted its quarterly earnings data on Monday. The company reported $0.52 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.02, FiscalAI reports. XP had a return on equity of 22.51% and a net margin of 27.40%.The company had revenue of $943.55 million for the quarter, compared to analyst estimates of $935.15 million.

XP Stock Down 0.8%

Shares of XP stock traded down $0.12 during trading on Monday, reaching $15.70. 5,763,171 shares of the company traded hands, compared to its average volume of 5,900,681. The firm has a market capitalization of $8.44 billion, a PE ratio of 8.67, a P/E/G ratio of 0.46 and a beta of 1.10. XP has a 1-year low of $14.80 and a 1-year high of $23.13. The company has a 50 day moving average price of $16.22 and a 200-day moving average price of $18.15. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.66 and a quick ratio of 6.66.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Zacks Research lowered shares of XP from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. UBS Group reduced their price objective on shares of XP from $28.00 to $25.00 and set a “buy” rating on the stock in a research note on Wednesday, June 3rd. Finally, Weiss Ratings upgraded shares of XP from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.33.

XP declared that its board has initiated a share buyback plan 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. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On XP

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Virtu Financial LLC bought a new stake in XP in the 4th quarter valued at about $225,000. Invesco Ltd. grew its holdings in shares of XP by 64.3% during the fourth quarter. Invesco Ltd. now owns 594,745 shares of the company’s stock valued at $9,736,000 after buying an additional 232,820 shares during the last quarter. XTX Topco Ltd increased its position in shares of XP by 208.1% during the fourth quarter. XTX Topco Ltd now owns 160,090 shares of the company’s stock worth $2,621,000 after acquiring an additional 108,126 shares in the last quarter. SummitTX Capital L.P. increased 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 worth $507,000 after acquiring an additional 857 shares in the last quarter. Finally, Twinbeech Capital LP acquired a new stake in shares of XP in the 4th quarter worth about $5,237,000. 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.