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

XP Inc [NASDAQ: XP] gained 1.37% on the last trading session, reaching $25.21 price per share at the time. The company report on January 26, 2024 at 7:05 AM that XP Inc. reports 4Q23 KPIs.

XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, announced today its 4Q23 KPIs. The Portuguese version of this release can be accessed in the Press Release section on the IR website. Additional KPI details and historical data can be found in our financial spreadsheet.

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Starting next quarter, we will integrate our KPIs into our regular earnings releases. This strategic shift reflects our belief that operational and financial data should be analyzed concurrently, providing investors with a more cohesive and insightful perspective on XP Inc.’s overall performance. Based on our ongoing commitment to transparency and a more comprehensive understanding of our performance, we also intend to continue to revise and improve our published KPIs over the upcoming quarters.

If compared to the average trading volume of 5.32M shares, XP reached a trading volume of 6594977 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 $30.59 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 1.20. 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.

JP Morgan have made an estimate for XP Inc shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on December 05, 2023. While these analysts kept the previous recommendation, Credit Suisse raised their target price from $15 to $26. The new note on the price target was released on July 20, 2023, representing the official price target for XP Inc stock. On February 17, 2023, analysts decreased their price target for XP shares from 27 to 15.

The Average True Range (ATR) for XP Inc is set at 0.80, with the Price to Sales ratio for XP stock in the period of the last 12 months amounting to 4.84. The Price to Book ratio for the last quarter was 3.45, with the Price to Cash per share for the same quarter was set at 1.39. Price to Free Cash Flow for XP in the course of the last twelve months was 4.32.

Trading performance analysis for XP stock

XP Inc [XP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.72. With this latest performance, XP shares dropped by -0.55% in over the last four-week period, additionally plugging by 1.33% over the last 6 months – not to mention a rise of 58.65% 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 50.98, with the RSI for the last a single of trading hit 51.95, and the three-weeks RSI is set at 51.18 for XP Inc [XP]. The present Moving Average for the last 50 days of trading for this stock 25.22, while it was recorded at 24.91 for the last single week of trading, and 23.21 for the last 200 days.

XP Inc [XP]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, XP Inc posted 0.32/share EPS, while the average EPS was predicted by analysts to be reported at 0.39/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -17.90%. 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 13.70%.

An analysis of Institutional ownership at XP Inc [XP]

The top three institutional holders of XP stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in XP stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in XP stock with ownership which is approximately 5.8325%.