Brokerages Set XP Inc. (NASDAQ:XP) Target Price at $23.33

Shares of XP Inc. (NASDAQ:XP) have received an average rating of “Moderate Buy” from the five research firms that are currently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $23.3333.

XP has been the subject of several analyst reports. UBS Group reduced their price objective on shares of XP from $28.00 to $25.00 and set a “buy” rating for the company in a research note on Wednesday, June 3rd. Zacks Research lowered XP from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Finally, Weiss Ratings raised XP from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th.

Hedge Funds Weigh In On XP

A number of institutional investors have recently modified their holdings of XP. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in XP by 29.6% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 457,119 shares of the company’s stock valued at $7,396,000 after buying an additional 104,395 shares in the last quarter. Massachusetts Financial Services Co. MA grew its position in XP by 11.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 12,263,021 shares of the company’s stock valued at $200,746,000 after acquiring an additional 1,300,982 shares during the period. Hussman Strategic Advisors Inc. acquired a new position in XP during the fourth quarter worth $1,375,000. Pictet Asset Management Holding SA raised its stake in XP by 11.6% during the fourth quarter. Pictet Asset Management Holding SA now owns 539,486 shares of the company’s stock worth $8,831,000 after acquiring an additional 56,090 shares in the last quarter. Finally, Wealth High Governance Capital Ltda bought a new position in shares of XP during the fourth quarter valued at $9,990,000. Institutional investors own 59.15% of the company’s stock.

XP Price Performance

Shares of XP opened at $16.67 on Friday. The firm has a market cap of $8.96 billion, a PE ratio of 9.21, a PEG ratio of 0.59 and a beta of 1.10. The firm’s 50 day moving average price is $16.40 and its 200 day moving average price is $18.29. 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 has a twelve month low of $14.80 and a twelve month high of $23.13.

XP Increases Dividend

The business also recently announced an annual dividend, which was paid on Thursday, June 18th. Investors of record on Wednesday, June 10th were issued a $0.20 dividend. This is an increase from XP’s previous annual dividend of $0.18. The ex-dividend date was Wednesday, June 10th. This represents a yield of 268.0%. XP’s dividend payout ratio is presently 22.10%.

XP announced that its Board of Directors has initiated a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

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.