XP (NASDAQ:XP) Reaches New 12-Month Low – Here’s Why

XP Inc. (NASDAQ:XP)’s share price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $14.90 and last traded at $14.94, with a volume of 8646332 shares traded. The stock had previously closed at $15.64.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. Weiss Ratings raised shares of XP from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. UBS Group cut their price target on shares of XP from $28.00 to $25.00 and set a “buy” rating on the stock in a report on Wednesday, June 3rd. Finally, Zacks Research downgraded shares of XP from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, XP currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.75.

XP Price Performance

The firm has a 50-day moving average of $18.21 and a 200 day moving average of $18.56. The company has a market capitalization of $8.61 billion, a PE ratio of 8.85, a PEG ratio of 0.50 and a beta of 1.11. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.66 and a quick ratio of 6.66.

XP Increases Dividend

The company also recently declared an annual dividend, which will be paid on Thursday, June 18th. Stockholders of record on Wednesday, June 10th will be paid a $0.20 dividend. This is an increase from XP’s previous annual dividend of $0.18. The ex-dividend date is Wednesday, June 10th. This represents a dividend yield of 268.0%. XP’s dividend payout ratio (DPR) is 22.10%.

XP declared that its board has initiated a share buyback program on Tuesday, May 19th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Institutional Trading of XP

Hedge funds have recently bought and sold shares of the company. Parallel Advisors LLC increased its position in shares of XP by 117.3% during the 1st quarter. Parallel Advisors LLC now owns 3,288 shares of the company’s stock valued at $63,000 after purchasing an additional 1,775 shares during the last quarter. Oaktree Fund Advisors LLC grew its position in XP by 6.7% during the first quarter. Oaktree Fund Advisors LLC now owns 199,519 shares of the company’s stock valued at $3,799,000 after buying an additional 12,445 shares during the period. Bank of America Corp DE increased its holdings in XP by 33.4% during the first quarter. Bank of America Corp DE now owns 5,147,245 shares of the company’s stock valued at $98,004,000 after buying an additional 1,289,393 shares during the last quarter. Janus Henderson Group PLC purchased a new stake in XP during the first quarter valued at approximately $3,559,000. Finally, Strategic Investment Advisors MI bought a new position in XP in the first quarter worth approximately $126,000. Hedge funds and other institutional investors own 59.15% of the company’s stock.

XP Company Profile

XP Inc provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.