Wall Street Analyst Downgrade XP Inc. [XP]. What else is Wall St. saying

XP Inc. [NASDAQ: XP] traded at a high on 04/18/23, posting a 2.33 gain after which it closed the day’ session at $14.05. The company report on February 16, 2023 that XP Inc. Reports Fourth Quarter and Full-Year 2022 Financial Results.

XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading tech-enabled platform and a trusted pioneer in providing low-fee financial products and services in Brazil, reported today its financial results for the fourth quarter and full-year 2022.

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The results of the trading session contributed to over 3940756 shares changing hands. Over the past one week, the price volatility of XP Inc. stands at 5.27% while the volatility over the past one month is 5.18%.

The market cap for XP stock reached $7.62 billion, with 547.55 million shares outstanding and 388.21 million shares in the current float. Compared to the average trading volume of 6.29M shares, XP reached a trading volume of 3940756 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $18.81 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 Underperform, with their previous recommendation back on February 17, 2023. The new note on the price target was released on August 11, 2022, representing the official price target for XP Inc. stock. Previously, the target price had yet another drop from $37 to $31, while UBS kept a Buy rating on XP stock. On May 09, 2022, analysts decreased their price target for XP shares from 31 to 26.

The Average True Range (ATR) for XP Inc. is set at 0.69, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 2.81. The Price to Book ratio for the last quarter was 2.23, with the Price to Cash per share for the same quarter was set at 1.33.

How has XP stock performed recently?

XP Inc. [XP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.23. With this latest performance, XP shares gained by 17.87% in over the last four-week period, additionally sinking by -20.08% over the last 6 months – not to mention a drop of -50.18% 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 65.46, with the RSI for the last a single of trading hit 74.14, and the three-weeks RSI is set at 59.03 for XP Inc. [XP]. The present Moving Average for the last 50 days of trading for this stock 12.77, while it was recorded at 13.69 for the last single week of trading, and 16.96 for the last 200 days.

XP Inc. [XP]: Deeper insight into the 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 Total Capital for XP is now 8.33, given the latest momentum, and Return on Invested Capital for the company is 23.24. Return on Equity for this stock inclined to 28.39, with Return on Assets sitting at 3.06. When it comes to the capital structure of this company, XP Inc. [XP] has a Total Debt to Total Equity ratio set at 246.25. Additionally, XP Total Debt to Total Capital is recorded at 71.12, with Total Debt to Total Assets ending up at 25.48. Long-Term Debt to Equity for the company is recorded at 35.87, with the Long-Term Debt to Total Capital now at 10.36.

Reflecting on the efficiency of the workforce at the company, XP Inc. [XP] managed to generate an average of $107,408 per employee. Receivables Turnover for the company is 1.41 with a Total Asset Turnover recorded at a value of 0.11.

Earnings analysis for XP Inc. [XP]

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 13.76%.

Insider trade positions for XP Inc. [XP]

There are presently around $3,960 million, or 63.10% of XP stock, in the hands of institutional investors. The top three institutional holders of XP stocks are: CAPITAL WORLD INVESTORS with ownership of 33,495,084, which is approximately 131.87% of the company’s market cap and around 19.35% of the total institutional ownership; DODGE & COX, holding 29,769,631 shares of the stock with an approximate value of $408.74 million in XP stocks shares; and GENERAL ATLANTIC, L.P., currently with $347.61 million in XP stock with ownership of nearly 0% of the company’s market capitalization.

Positions in XP Inc. stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 104 institutional holders increased their position in XP Inc. [NASDAQ:XP] by around 63,001,614 shares. Additionally, 108 investors decreased positions by around 43,187,172 shares, while 26 investors held positions by with 182,204,876 shares. The mentioned changes placed institutional holdings at 288,393,662 shares, according to the latest SEC report filing. XP stock had 45 new institutional investments in for a total of 27,300,500 shares, while 35 institutional investors sold positions of 18,125,146 shares during the same period.


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