XP (NASDAQ:XP) Sees Unusually-High Trading Volume – Here’s Why

XP Inc. (NASDAQ:XP) shares saw an uptick in trading volume on Tuesday. 8,076,936 shares were traded during trading, an increase of 10% from the average daily volume of 7,357,996 shares. The stock last traded at $16.2820 and had previously closed at $15.70.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on XP. Citigroup lowered shares of XP from a “buy” rating to a “neutral” rating and set a $15.00 price objective on the stock. in a report on Tuesday. JPMorgan Chase & Co. raised their target price on XP from $26.00 to $38.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 6th. Weiss Ratings upgraded XP from a “hold (c-)” rating to a “hold (c)” rating in a research note 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 report on Monday, August 31st. Finally, UBS Group raised their price objective on XP from $25.00 to $37.00 and gave the stock a “buy” rating in a research note on Thursday, October 8th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $26.80.

XP Stock Performance

The company has a market capitalization of $8.82 billion, a PE ratio of 8.53, a price-to-earnings-growth ratio of 0.70 and a beta of 1.01. The firm’s fifty day simple moving average is $22.46 and its 200 day simple moving average is $19.24. The company has a debt-to-equity ratio of 0.07, a current ratio of 4.80 and a quick ratio of 4.80.

XP (NASDAQ:XP) last posted its earnings results on Monday, August 17th. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.50 by $0.03. The firm had revenue of $943.55 million for the quarter, compared to analyst estimates of $935.15 million. XP had a return on equity of 22.19% and a net margin of 27.20%. XP’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period last year, the company earned $2.46 earnings per share. On average, research analysts predict that XP Inc. will post 2.08 EPS for the current year.

Insider Transactions at XP

In other XP news, Director Bruno Constantino Alexandre dos Santos sold 123,257 shares of the company’s stock in a transaction that occurred on 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 sale, the director owned 1,500,000 shares in the company, valued at approximately $29,370,000. This represents a 7.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link.

Institutional Investors Weigh In On XP

Hedge funds and other institutional investors have recently made changes to their positions in the company. Park Avenue Securities LLC purchased a new stake in XP during the third quarter worth $1,012,000. Signaturefd LLC increased its holdings in XP by 12.2% in the third quarter. Signaturefd LLC now owns 6,117 shares of the company’s stock valued at $128,000 after buying an additional 666 shares in the last quarter. Sterling Capital Management LLC increased its holdings in XP by 49.6% in the third quarter. Sterling Capital Management LLC now owns 17,675 shares of the company’s stock valued at $371,000 after buying an additional 5,862 shares in the last quarter. Reyes Financial Architecture Inc. acquired a new position in shares of XP in the third quarter worth about $29,000. Finally, Robeco Institutional Asset Management B.V. raised its position in shares of XP by 50.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,061,448 shares of the company’s stock worth $22,285,000 after acquiring an additional 356,669 shares during the period. Institutional investors and hedge funds own 59.15% of the company’s stock.

About XP

XP Inc is a Brazilian financial services company that operates a technology-driven investment and financial products platform. Through its digital channels and network of advisors, the company offers access to products including stocks, bonds, investment funds, exchange-traded funds, insurance and retirement products. It serves individual investors, businesses, institutional clients and independent financial advisors.

The company’s principal brands and businesses include XP, Rico and Clear, which provide brokerage and investment services to different customer segments.