XP Inc. [XP] Stock trading around $19.11 per share: What’s Next?


XP Inc. [NASDAQ: XP] closed the trading session at $19.11 on 06/22/22. The day’s price range saw the stock hit a low of $18.71, while the highest price level was $19.38. The company report on June 8, 2022 that XP Inc. Announces Share Purchase Agreement With Itaú.

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XP Inc. (Nasdaq: XP), announced today that it has signed a share purchase agreement with Itaú Unibanco. Under this agreement, XP will purchase 1,056,308 outstanding Class B common shares from Itaú Unibanco, equivalent to approximately U$24 million, or U$22.65 per share – the same price for which Itaú Unibanco sold 6,783,939 Class A shares on June 7th, 2022. XP should utilize its existing cash to fund this share repurchase and the shares should be held in treasury. This transaction is not part of the Share Repurchase Program announced by XP on May 11th, 2022.

The stocks have a year to date performance of -33.51 percent and weekly performance of 1.38 percent. The stock has been moved at -33.90 percent over the last six months. The stock has performed -10.58 percent around the most recent 30 days and changed -42.34 percent over the most recent 3-months.

If compared to the average trading volume of 4.52M shares, XP reached to a volume of 4863241 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $37.04 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 2.20. 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.

UBS have made an estimate for XP Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 07, 2022. While these analysts kept the previous recommendation, Citigroup dropped their target price from $31 to $26. The new note on the price target was released on May 09, 2022, representing the official price target for XP Inc. stock. Previously, the target price had yet another raise to $50, while JP Morgan analysts kept a Overweight rating on XP stock.

The Average True Range (ATR) for XP Inc. is set at 1.23, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 4.28. The Price to Book ratio for the last quarter was 3.47, with the Price to Cash per share for the same quarter was set at 1.15.

XP stock trade performance evaluation

XP Inc. [XP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.38. With this latest performance, XP shares dropped by -10.58% in over the last four-week period, additionally sinking by -33.90% over the last 6 months – not to mention a drop of -58.16% 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 39.37, with the RSI for the last a single of trading hit 37.76, and the three-weeks RSI is set at 39.99 for XP Inc. [XP]. The present Moving Average for the last 50 days of trading for this stock 22.56, while it was recorded at 19.02 for the last single week of trading, and 30.75 for the last 200 days.

XP Inc. [XP]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and XP Inc. [XP] shares currently have an operating margin of +31.78 and a Gross Margin at +70.67. XP Inc.’s Net Margin is presently recorded at +28.75.

Return on Equity for this stock inclined to 28.39, with Return on Assets sitting at 3.06.

Earnings per share (EPS) analysis for XP Inc. [XP] stock

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 18.40%.

XP Inc. [XP]: Insider Ownership positions

There are presently around $5,288 million, or 69.50% 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 50,537,650, which is approximately 3.417% of the company’s market cap and around 70.58% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 26,403,989 shares of the stock with an approximate value of $501.41 million in XP stocks shares; and HARDING LOEVNER LP, currently with $315.96 million in XP stock with ownership of nearly 7.978% of the company’s market capitalization.

Positions in XP Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 148 institutional holders increased their position in XP Inc. [NASDAQ:XP] by around 61,135,158 shares. Additionally, 114 investors decreased positions by around 36,995,660 shares, while 25 investors held positions by with 180,318,594 shares. The mentioned changes placed institutional holdings at 278,449,412 shares, according to the latest SEC report filing. XP stock had 56 new institutional investments in for a total of 13,730,559 shares, while 50 institutional investors sold positions of 6,441,399 shares during the same period.