JP Morgan slashes price target on XP Inc. [XP] – find out why.

XP Inc. [NASDAQ: XP] surged by $0.35 during the normal trading session on Wednesday and reaching a high of $14.98 during the day while it closed the day at $14.90. The company report on November 10, 2022 that XP Inc. Announces Share Purchase Agreement With Itaúsa.

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XP Inc. (Nasdaq: XP), announced today that it has signed a share purchase agreement with Itaúsa S.A. Under this agreement, XP will purchase 5,500,000 outstanding Class A common shares from Itaúsa S.A., equivalent to approximately U$105 million, in the same conditions for which Itaúsa sold 10,000,000 Class A shares on November 9th, 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.

XP Inc. stock has also loss -1.19% of its value over the past 7 days. However, XP stock has declined by -19.55% in the 3 months of the year. Over the past six months meanwhile, it has lost -18.53% and lost -48.16% year-on date.

The market cap for XP stock reached $7.98 billion, with 557.01 million shares outstanding and 399.77 million shares in the current float. Compared to the average trading volume of 4.75M shares, XP reached a trading volume of 3795998 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 $28.29 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 2.40. 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 Neutral, with their previous recommendation back on August 11, 2022. While these analysts kept the previous recommendation, UBS dropped their target price from $37 to $31. The new note on the price target was released on June 07, 2022, representing the official price target for XP Inc. stock. Previously, the target price had yet another drop from $31 to $26, while Citigroup kept a Buy rating on XP stock.

The Average True Range (ATR) for XP Inc. is set at 0.77, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 3.07. The Price to Book ratio for the last quarter was 2.45, with the Price to Cash per share for the same quarter was set at 0.94.

XP stock trade performance evaluation

XP Inc. [XP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.19. With this latest performance, XP shares dropped by -6.82% in over the last four-week period, additionally sinking by -18.53% over the last 6 months – not to mention a drop of -47.90% 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 41.90, with the RSI for the last a single of trading hit 43.51, and the three-weeks RSI is set at 41.73 for XP Inc. [XP]. The present Moving Average for the last 50 days of trading for this stock 17.05, while it was recorded at 15.07 for the last single week of trading, and 20.91 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 +32.02 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 17.20%.

XP Inc. [XP]: Insider Ownership positions

There are presently around $3,990 million, or 63.10% of XP stock, in the hands of institutional investors. The top three institutional holders of XP stocks are: DODGE & COX with ownership of 29,866,731, which is approximately 3.387% of the company’s market cap and around 20.22% of the total institutional ownership; GENERAL ATLANTIC, L.P., holding 25,317,733 shares of the stock with an approximate value of $377.23 million in XP stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $303.25 million in XP stock with ownership of nearly -6.469% 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 103 institutional holders increased their position in XP Inc. [NASDAQ:XP] by around 31,866,553 shares. Additionally, 112 investors decreased positions by around 37,334,114 shares, while 18 investors held positions by with 198,592,576 shares. The mentioned changes placed institutional holdings at 267,793,243 shares, according to the latest SEC report filing. XP stock had 31 new institutional investments in for a total of 8,359,963 shares, while 34 institutional investors sold positions of 4,181,320 shares during the same period.

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