XP Inc. [NASDAQ: XP] stock went on a downward path that fall over -5.86% on Tuesday, amounting to a one-week price decrease of less than -1.07%. The company report on December 9, 2021 that XP Inc. Acquires Minority Stake in Real Estate Financing Startup Direto.
XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, announced today the signing of an agreement with Direcional Engenharia (BVMF: DIRR3) to invest in the real estate financing startup Direto.
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The acquisition of 49.9% of Direto’s capital, still subject to regulatory approval, represents an important milestone for XP Inc. in a market with high potential and in which Direcional has proven expertise throughout its forty years of history.
Over the last 12 months, XP stock dropped by -28.82%. The one-year XP Inc. stock forecast points to a potential upside of 40.08. The average equity rating for XP stock is currently 2.50, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $15.82 billion, with 559.06 million shares outstanding and 71.94 million shares in the current float. Compared to the average trading volume of 4.75M shares, XP stock reached a trading volume of 3378723 in the most recent trading day, which is why market watchdogs consider the stock to be active.
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 $47.73 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.
JP Morgan have made an estimate for XP Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on October 15, 2021. The new note on the price target was released on September 24, 2021, representing the official price target for XP Inc. stock. Previously, the target price had yet another raise from $40 to $43, while Credit Suisse kept a Neutral rating on XP stock.
The Average True Range (ATR) for XP Inc. is set at 1.48, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 7.98. The Price to Book ratio for the last quarter was 6.73, with the Price to Cash per share for the same quarter was set at 0.90.
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 -1.07. With this latest performance, XP shares dropped by -3.25% in over the last four-week period, additionally sinking by -35.86% over the last 6 months – not to mention a drop of -28.82% 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 40.98, with the RSI for the last a single of trading hit 39.96, and the three-weeks RSI is set at 40.84 for XP Inc. [XP]. The present Moving Average for the last 50 days of trading for this stock 31.54, while it was recorded at 29.57 for the last single week of trading, and 39.62 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 +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 Stock EPS
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 5.04%.
XP Inc. [XP] Insider Position Details
There are presently around $6,181 million, or 50.10% of XP stock, in the hands of institutional investors. The top three institutional holders of XP stocks are: GENERAL ATLANTIC, L.P. 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 21,267,314 shares of the stock with an approximate value of $646.1 million in XP stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $511.46 million in XP stock with ownership of nearly -3.756% 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 207 institutional holders increased their position in XP Inc. [NASDAQ:XP] by around 19,493,803 shares. Additionally, 161 investors decreased positions by around 16,661,964 shares, while 70 investors held positions by with 167,301,050 shares. The mentioned changes placed institutional holdings at 203,456,817 shares, according to the latest SEC report filing. XP stock had 52 new institutional investments in for a total of 7,027,495 shares, while 46 institutional investors sold positions of 4,725,899 shares during the same period.