XP Inc (NASDAQ: XP) has experienced a rise in its stock price by 0.97 compared to its previous closing price of 18.57. However, the company has seen a fall of -4.34% in its stock price over the last five trading days. seekingalpha.com reported 2024-08-13 that XP Inc. (NASDAQ:XP ) Q2 2024 Earnings Conference Call August 13, 2024 5:00 PM ET Company Participants Andre Parize – Head, Investor Relations Thiago Maffra – Chief Executive Officer Victor Mansur – Chief Financial Officer Conference Call Participants Antonio Huet – Bank of America Jorge Kuri – Morgan Stanley Renato Meloni – Autonomous Research Daniel Vaz – Banco Safra Tito Labarta – Goldman Sachs Olavo Arthuzo – UBS Neha Agarwala – HSBC Operator Good evening, everyone, I’m Andre Parize, IRO at XP Inc. It’s a pleasure to be here with you today. On behalf of the company, I’d like to thank you all for the interest and welcome you to our 2024 Second Quarter Earnings Call.
Is It Worth Investing in XP Inc (NASDAQ: XP) Right Now?
The price-to-earnings ratio for XP Inc (NASDAQ: XP) is above average at 12.14x, Company’s 36-month beta value is 1.66.Analysts have differing opinions on the stock, with 4 analysts rating it as a “buy,” 2 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The public float for XP is 354.90M, and currently, short sellers hold a 1.91% ratio of that floaft. The average trading volume of XP on August 30, 2024 was 5.64M shares.
XP’s Market Performance
XP’s stock has seen a -4.34% decrease for the week, with a 12.75% rise in the past month and a -1.26% fall in the past quarter. The volatility ratio for the week is 2.93%, and the volatility levels for the past 30 days are at 3.09% for XP Inc The simple moving average for the past 20 days is 0.97% for XP’s stock, with a -14.92% simple moving average for the past 200 days.
Analysts’ Opinion of XP
Many brokerage firms have already submitted their reports for XP stocks, with UBS repeating the rating for XP by listing it as a “Neutral.” The predicted price for XP in the upcoming period, according to UBS is $21 based on the research report published on July 11, 2024 of the current year 2024.
Goldman, on the other hand, stated in their research note that they expect to see XP reach a price target of $23, previously predicting the price at $30. The rating they have provided for XP stocks is “Neutral” according to the report published on April 30th, 2024.
Morgan Stanley gave a rating of “Equal-Weight” to XP, setting the target price at $24 in the report published on April 23rd of the current year.
XP Trading at 3.86% from the 50-Day Moving Average
After a stumble in the market that brought XP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -30.62% of loss for the given period.
Volatility was left at 3.09%, however, over the last 30 days, the volatility rate increased by 2.93%, as shares surge +14.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.51% upper at present.
During the last 5 trading sessions, XP fell by -4.13%, which changed the moving average for the period of 200-days by -15.44% in comparison to the 20-day moving average, which settled at $18.69. In addition, XP Inc saw -28.08% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for XP
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.63 for the gross margin
The net margin for XP Inc stands at 0.3. The total capital return value is set at 0.01. Equity return is now at value 23.06, with 1.69 for asset returns.
Based on XP Inc (XP), the company’s capital structure generated 0.79 points at debt to capital in total, while cash flow to debt ratio is standing at 0.22. The debt to equity ratio resting at 3.82. The interest coverage ratio of the stock is 6.31.
Currently, EBITDA for the company is 4.87 billion with net debt to EBITDA at 21.22. When we switch over and look at the enterprise to sales, we see a ratio of 8.95. The receivables turnover for the company is 0.53for trailing twelve months and the total asset turnover is 0.05.
Conclusion
In a nutshell, XP Inc (XP) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
