XP Should I Buy
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XP Inc is not a strong buy for a beginner, long-term investor at this moment. The technical indicators suggest a bearish trend, and hedge funds are selling heavily. While the company's financial performance shows growth, the stock's recent price action and lack of strong positive catalysts make it less appealing for immediate investment. Holding off for a better entry point or further positive developments is recommended.
The MACD is negative and expanding (-0.365), indicating a bearish trend. RSI is at 25.148, which is neutral but close to oversold territory. The stock is trading below its pivot level (20.854) and nearing its S2 support level (18.19), suggesting further downside risk.
The company has shown strong financial growth in Q4 2025, with revenue up 11.22% YoY, net income up 9.79%, and EPS up 11.93%. Analysts have a mixed but slightly positive outlook, with Jefferies initiating a Buy rating and UBS raising its price target to $25.
Hedge funds are selling heavily, with a 288.80% increase in selling activity last quarter. The stock has declined significantly in the regular market (-5.43%) and pre-market (-2.69%), indicating weak investor sentiment. No recent news or significant events to drive positive momentum.
In Q4 2025, XP Inc reported revenue of $4.94 billion (up 11.22% YoY), net income of $1.29 billion (up 9.79% YoY), and EPS of 2.44 (up 11.93% YoY). The company is showing consistent growth, but gross margin remains flat.
Analysts have mixed views. Jefferies initiated a Buy rating with a $22 price target, citing XP's strong competitive position in Brazil. UBS raised its price target to $25, maintaining a Buy rating. However, BofA remains Neutral, raising its price target to $26 but noting that revenue growth estimates still lag the company's guidance.
