XP Inc. [NASDAQ: XP] price plunged by -4.70 percent to reach at -$1.9. The company report on December 3, 2020 that XP Inc. Announces Pricing of Public Follow-On Offering.
XP Inc., or XP (Nasdaq: XP) announced the pricing of an underwritten public offering of 31,654,894 Class A common shares, 7,130,435 of which are being offered by the Company and 24,524,459 of which are being offered by ITB Holding Brasil Participações Ltda. at a public offering price of US$39.00 per share. The offering is being made pursuant to a registration statement on Form F-1 filed with the U.S. Securities and Exchange Commission (“SEC”).
The offering is expected to close on or about December 7, 2020, subject to customary closing conditions.
A sum of 9260984 shares traded at recent session while its average daily volume was at 829.21K shares. XP Inc. shares reached a high of $39.95 and dropped to a low of $38.16 until finishing in the latest session at $38.51.
The one-year XP stock forecast points to a potential upside of 17.63. The average equity rating for XP stock is currently 2.70, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on XP Inc. [XP]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for XP shares is $46.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on XP stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BofA Securities have made an estimate for XP Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 16, 2020. The new note on the price target was released on June 24, 2020, representing the official price target for XP Inc. stock. Previously, the target price had yet another raise to $28, while JP Morgan analysts kept a Neutral rating on XP stock. On April 27, 2020, analysts decreased their price target for XP shares from 43 to 20.
The Average True Range (ATR) for XP Inc. is set at 2.15, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 15.31. The Price to Book ratio for the last quarter was 13.10, with the Price to Cash per share for the same quarter was set at 0.22.
XP Stock Performance Analysis:
XP Inc. [XP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.27. With this latest performance, XP shares dropped by -9.05% in over the last four-week period, additionally plugging by 5.28% over the last 6 months.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for XP stock in for the last two-week period is set at 39.77, with the RSI for the last a single of trading hit 34.54, and the three-weeks RSI is set at 42.01 for XP Inc. [XP]. The present Moving Average for the last 50 days of trading for this stock 41.55, while it was recorded at 40.41 for the last single week of trading, and 37.45 for the last 200 days.
Insight into XP Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and XP Inc. [XP] shares currently have an operating margin of +29.51 and a Gross Margin at +68.14. XP Inc.’s Net Margin is presently recorded at +20.29.
Return on Total Capital for XP is now 8.54, given the latest momentum, and Return on Invested Capital for the company is 19.99. Return on Equity for this stock inclined to 23.65, with Return on Assets sitting at 3.55. When it comes to the capital structure of this company, XP Inc. [XP] has a Total Debt to Total Equity ratio set at 267.46. Additionally, XP Total Debt to Total Capital is recorded at 72.79, with Total Debt to Total Assets ending up at 43.86. Long-Term Debt to Equity for the company is recorded at 12.88, with the Long-Term Debt to Total Capital now at 3.50.
Receivables Turnover for the company is 9.57 with a Total Asset Turnover recorded at a value of 0.18.
XP Stock EPS
With the latest financial reports released by the company, XP Inc. posted 0.15/share EPS, while the average EPS was predicted by analysts to be reported at 0.08/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 87.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for XP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for XP Inc. go to 4.26%.
XP Inc. [XP] Insider Position Details
There are presently around $5,197 million, or 40.80% of XP stock, in the hands of institutional investors. The top three institutional holders of XP stocks are: GENERAL ATLANTIC LLC with ownership of 46,202,650, which is approximately -25.89% of the company’s market cap and around 55.96% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 18,183,898 shares of the stock with an approximate value of $700.26 million in XP stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $632.93 million in XP stock with ownership of nearly 30.436% of the company’s market capitalization.
Positions in XP Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 76 institutional holders increased their position in XP Inc. [NASDAQ:XP] by around 27,921,417 shares. Additionally, 43 investors decreased positions by around 27,432,408 shares, while 14 investors held positions by with 79,599,814 shares. The mentioned changes placed institutional holdings at 134,953,639 shares, according to the latest SEC report filing. XP stock had 26 new institutional investments in for a total of 5,005,346 shares, while 12 institutional investors sold positions of 1,753,803 shares during the same period.