XP Inc. (XP) Performance and Fundamentals Dashboard tells a completely different story

XP Inc. (NASDAQ: XP) stock jumped 0.68% on Tuesday to $17.75 against a previous-day closing price of $17.63. With 2.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.44 million shares. During the session, the Capital Markets company that operates in wider Financial sector, reached to the highest price of $17.83 whereas the lowest price it dropped to was $17.39. The 52-week range on XP shows that it touched its highest point at $36.36 and its lowest point at $13.76 during that stretch. It currently has a 1-year price target of $26.93.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of XP was up-trending over the past week, with a rise of 9.70%, but this was up by 15.33% over a month. Three-month performance dropped to -1.66% while six-month performance fell -5.99%. The stock lost -40.22% in the past year, while it has gained 15.71% so far this year. A look at the trailing 12-month EPS for XP yields 1.27 with Next year EPS estimates of 7.70. For the next quarter, that number is 1.95. This implies an EPS growth rate of 68.50% for this year and 8.45% for next year. EPS is expected to grow by 8.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 78.90%.

Float and Shares Shorts:

At present, 555.71 million XP shares are outstanding with a float of 402.36 million shares on hand for trading. On Oct 13, 2022, short shares totaled 11.07 million, which was 1.98% higher than short shares on Sep 14, 2022. In addition to Mr. Guilherme Dias Fernandes Benchimol as the firm’s Founder & Exec. Chairman, Mr. Thiago Maffra serves as its Chief Exec. Officer.

Institutional Ownership:

Through their ownership of 65.48% of XP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 31.17% of XP, in contrast to 24.13% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in XP with 6.73% of the stake, Dodge & Cox holds 29,866,731 shares worth 29,866,731. A second-largest stockholder of XP, T. Rowe Price Associates, Inc., holds 20,352,279 shares, controlling over 4.59% of the firm’s shares. Harding Loevner LP is the third largest shareholder in XP, holding 16,002,301 shares or 3.61% stake. With a 4.60% stake in XP, the Dodge & Cox International Stock F is the largest stakeholder. A total of 20,397,602 shares are owned by the mutual fund manager. The American Funds EuroPacific Growth, which owns about 3.02% of XP stock, is the second-largest Mutual Fund holder. It holds 13,409,483 shares valued at 205.7 million. Fidelity Inv. Trust – Emerging Ma holds 2.10% of the stake in XP, owning 9,315,365 shares worth 142.9 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for XP since 12 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With XP analysts setting a high price target of $153.32 and a low target of $86.58, the average target price over the next 12 months is $124.08. Based on these targets, XP could surge 763.77% to reach the target high and rise by 387.77% to reach the target low. Reaching the average price target will result in a growth of 599.04% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. XP will report FY 2022 earnings on 02/07/2024. Analysts have provided yearly estimates in a range of $7.86 being high and $6.11 being low. For XP, this leads to a yearly average estimate of $6.89. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. XP Inc. surprised analysts by $0.05 when it reported $0.36 EPS against a consensus estimate of $0.31. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $2.09 and the low estimate is $1.49. The average estimate for the next quarter is thus $1.73.

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