XP (XP) Stock Price, News & Analysis

Company Overview

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. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.

Key Stats

• Today's Range: $17.40 to $17.94
• 50-Day Range: $36.71 to $44.78
• 52-Week Range: $34.53 to $52.94
• Volume: 3.38 million shs
• Average Volume: 8.55 million shs
• Market Capitalization: $9.85 billion
• P/E Ratio: 11.80
• Dividend Yield: 4.07%
• Price Target: $24.33
• Consensus Rating: Moderate Buy

XP Stock Analysis - MarketRank™

XP scored higher than 74% of companies evaluated by MarketBeat, and ranked 405th out of 955 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

XP has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 3 buy ratings, 3 hold ratings, and no sell ratings.

Amount of Analyst Coverage

XP has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 13.38%

Earnings Growth

Earnings for XP are expected to grow by 13.38% in the coming year, from $1.42 to $1.61 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of XP is 11.80, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 129.53.

Price to Earnings Ratio vs. Sector

The P/E ratio of XP is 11.80, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 38.38.

Price to Earnings Growth Ratio

XP has a PEG Ratio of 0.96. PEG Ratios around 1 indicate that a company is correctly valued.

Price to Book Value per Share Ratio

XP has a P/B Ratio of 2.53. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

5.03% of the float of XP has been sold short.

Short Interest Ratio / Days to Cover

XP has a short interest ratio ("days to cover") of 2.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in XP has recently increased by 68.87%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Leadership

XP is a leading dividend payer. It pays a dividend yield of 4.01%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

XP does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of XP is 48.03%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, XP will have a dividend payout ratio of 45.34% next year. This indicates that XP will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

5.03% of the float of XP has been sold short.

Short Interest Ratio / Days to Cover

XP has a short interest ratio ("days to cover") of 2.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in XP has recently increased by 68.87%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 0.0 / 5
• News Sentiment: N/A

Search Interest

Only 5 people have searched for XP on MarketBeat in the last 30 days. This is a decrease of -29% compared to the previous 30 days.

Company Ownership

• Score: 0.8 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, XP insiders have not sold or bought any company stock.

Percentage Held by Institutions

59.15% of the stock of XP is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

XP Stock Analysis - Frequently Asked Questions

How were XP's earnings last quarter?

XP Inc. (NASDAQ:XP) released its quarterly earnings results on Tuesday, August, 13th. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.35 by $0.04. The firm had revenue of $809.53 million for the quarter, compared to the consensus estimate of $785.19 million. XP had a trailing twelve-month return on equity of 21.45% and a net margin of 25.98%.

How will XP's stock buyback program work?

XP's Board of Directors authorized a share repurchase plan on Tuesday, February 27th 2024, which authorizes the company to buy back 2,500,000 outstanding shares, according to EventVestor. This authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Does XP have any subsidiaries?

XP subsidiaries include these companies: Banco XP S.A., Chamaleon Bravery – Unipessoal LDA, Infostocks Informações e Sistemas Ltda., Leadr Serviços Online Ltda., Sartus Capital LTD, Spiti Análise Ltda., Tecfinance Informática e Projetos de Sistemas Ltda., and others.

When did XP IPO?

XP (XP) raised $1.7 billion in an initial public offering on Wednesday, December 11th 2019. The company issued 72,500,000 shares at a price of $22.00-$25.00 per share. Goldman Sachs, J.P. Morgan, Morgan Stanley, XP Investments and Itaú BBA served as the underwriters for the IPO and BofA Securities, Citigroup, Credit Suisse and UBS Investment Bank were co-managers.

Who are XP's major shareholders?

Top institutional investors of XP include Park Avenue Securities LLC (0.01%) and SG Americas Securities LLC.

Company Calendar

• Last Earnings: 8/13/2024
• Today: 10/03/2024
• Next Earnings (Estimated): 11/11/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: Security brokers & dealers
• Sub-Industry: N/A
• Current Symbol: NASDAQ:XP
• CUSIP: N/A
• CIK: N/A
• Web: www.xpinc.com
• Phone: 55 11 3075 0429
• Fax: N/A
• Employees: 6,192
• Year Founded: 2001

Price Target and Rating

• Average Stock Price Target: $24.33
• High Stock Price Target: $30.00
• Low Stock Price Target: $19.00
• Potential Upside/Downside: +35.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 6 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $1.52
• Trailing P/E Ratio: 11.82
• Forward P/E Ratio: 12.65
• P/E Growth: 0.96
• Net Income: $780.91 million
• Net Margins: 25.98%
• Pretax Margin: 27.98%
• Return on Equity: 21.45%
• Return on Assets: 1.62%

Debt

• Debt-to-Equity Ratio: 0.13
• Current Ratio: 4.70
• Quick Ratio: 4.70

Sales & Book Value

• Annual Sales: $2.98 billion
• Price / Sales: 3.32
• Cash Flow: $1.49 per share
• Price / Cash Flow: 12.03
• Book Value: $7.09 per share
• Price / Book: 2.53

Miscellaneous

• Outstanding Shares: 549,490,000
• Free Float: N/A
• Market Cap: $9.87 billion
• Optionable: Optionable
• Beta: 1.66