XP Inc. [NASDAQ: XP] gained 0.09% or 0.04 points to close at $42.44 with a heavy trading volume of 853605 shares. The company report on June 26, 2021 that XP Inc. Partners With Jive, a Leading Alternative Investment Manager in Brazil.
XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, signed yesterday the acquisition of a minority stake in Jive Investments, the largest independent alternative investment manager in Brazil, offering credit recovery, real estate, and other distressed asset strategies. XP’s investment will allow Jive to accelerate its growth, while the partnership represents another step in XP’s initiative to foster independent asset managers in Brazil within an entrepreneur-friendly ecosystem.
Additionally, the development of independent asset managers meets XP’s strategy by contributing to an increase in secondary market liquidity. Higher liquidity is vital when we think about the disintermediation in the credit industry through capital markets.
It opened the trading session at $42.60, the shares rose to $42.92 and dropped to $41.80, the range by which the price of stock traded the whole day. The daily chart for XP points out that the company has recorded 6.98% gains over the past six months. However, it is still -22.91% lower than its most recent low trading price.
If we look at the average trading volume of 1.29M shares, XP reached to a volume of 853605 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about 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 $52.86 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 2.50. 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.
Credit Suisse have made an estimate for XP Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 25, 2021. While these analysts kept the previous recommendation, HSBC Securities raised their target price to Buy. The new note on the price target was released on April 29, 2021, representing the official price target for XP Inc. stock. Previously, the target price had yet another raise to $50, while Goldman analysts kept a Buy rating on XP stock.
The Average True Range (ATR) for XP Inc. is set at 1.35, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 13.23. The Price to Book ratio for the last quarter was 10.38, with the Price to Cash per share for the same quarter was set at 0.55. Price to Free Cash Flow for XP in the course of the last twelve months was 64.24.
Trading performance analysis for XP stock
XP Inc. [XP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.50. With this latest performance, XP shares gained by 7.36% in over the last four-week period, additionally plugging by 6.98% over the last 6 months – not to mention a drop of -5.25% in the past year of trading.
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 43.75, with the RSI for the last a single of trading hit 33.84, and the three-weeks RSI is set at 48.06 for XP Inc. [XP]. The present Moving Average for the last 50 days of trading for this stock 42.12, while it was recorded at 43.59 for the last single week of trading, and 41.66 for the last 200 days.
XP Inc. [XP]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and XP Inc. [XP] shares currently have an operating margin of +30.14 and a Gross Margin at +67.30. XP Inc.’s Net Margin is presently recorded at +24.35.
Return on Total Capital for XP is now 6.49, given the latest momentum, and Return on Invested Capital for the company is 19.10. Return on Equity for this stock inclined to 20.77, with Return on Assets sitting at 2.74. When it comes to the capital structure of this company, XP Inc. [XP] has a Total Debt to Total Equity ratio set at 320.38. Additionally, XP Total Debt to Total Capital is recorded at 76.21, with Total Debt to Total Assets ending up at 36.35. Long-Term Debt to Equity for the company is recorded at 5.24, with the Long-Term Debt to Total Capital now at 1.25.
Reflecting on the efficiency of the workforce at the company, XP Inc. [XP] managed to generate an average of $110,258 per employee. Receivables Turnover for the company is 3.14 with a Total Asset Turnover recorded at a value of 0.11.
XP Inc. [XP]: An earnings per share (EPS) analysis
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 5.32%.
An analysis of insider ownership at XP Inc. [XP]
There are presently around $7,417 million, or 49.70% 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 0% of the company’s market cap and around 47.82% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 24,554,758 shares of the stock with an approximate value of $1.04 billion in XP stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $764.19 million in XP stock with ownership of nearly -8.469% of the company’s market capitalization.
Positions in XP Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 86 institutional holders increased their position in XP Inc. [NASDAQ:XP] by around 22,084,655 shares. Additionally, 71 investors decreased positions by around 12,409,413 shares, while 15 investors held positions by with 140,272,744 shares. The mentioned changes placed institutional holdings at 174,766,812 shares, according to the latest SEC report filing. XP stock had 33 new institutional investments in for a total of 10,540,569 shares, while 33 institutional investors sold positions of 4,865,626 shares during the same period.