On July 7, 2023, investment firm General Atlantic, L.P. reduced its holdings in XP Inc. This article provides an in-depth analysis of the transaction, the guru's profile, and the traded stock's performance. The data used in this article is accurate as of July 12, 2023.
About General Atlantic, L.P.
General Atlantic, L.P., headquartered at 55 East 52nd Street, New York, NY, is a renowned investment firm. The firm's investment philosophy is centered around identifying high-potential companies and providing strategic support to help them scale. As of the date of this article, the firm holds 31 stocks in its portfolio, with a total equity of $8.61 billion. The firm's top holdings include Oak Street Health Inc (OSH, Financial), Alignment Healthcare Inc (ALHC, Financial), Squarespace Inc (SQSP, Financial), DLocal Ltd (DLO, Financial), and Engagesmart Inc (ESMT, Financial). The firm's portfolio is heavily concentrated in the Technology and Healthcare sectors.
Details of the Transaction
On July 7, 2023, General Atlantic, L.P. reduced its stake in XP Inc. The transaction did not result in a change in the number of shares held by the guru, which stands at 29,617,733. The traded price was $23.65 per share. Following the transaction, XP Inc now represents 8.14% of the guru's portfolio, and the guru holds 7.10% of XP Inc's total shares.
Profile of XP Inc
XP Inc, a technology-driven financial services platform based in Brazil, was listed on the stock exchange on December 11, 2019. The company offers low-fee financial products and services in Brazil, generating revenue through brokerage commission, commissions fees, educational services, insurance brokerage fee, management fees, other services, sales taxes, and contributions on revenue. As of the date of this article, the company has a market capitalization of $12.67 billion and a stock price of $23.39. The stock's PE percentage is 19.24.
According to GuruFocus, XP Inc is potentially a value trap, and investors should think twice before investing. The GF Value of the stock is $60.93, and the stock price to GF Value ratio is 0.38. The GF Score of the stock is 80, indicating good outperformance potential.
Performance and Rankings of XP Inc
Since its IPO, XP Inc's stock price has decreased by 28.58%. However, the stock has gained 69.25% year-to-date. The stock's balance sheet, profitability, growth, and momentum ranks are 3, 6, 9, and 9, respectively. The stock's F Score is 7, indicating a healthy financial situation.
Largest Guru Holding XP Inc
Dodge & Cox is the largest guru holding XP Inc. The exact share percentage held by Dodge & Cox is not provided in the data.
Other Gurus Holding XP Inc
Other notable gurus holding XP Inc include Ron Baron (Trades, Portfolio) and Ken Fisher (Trades, Portfolio).
Conclusion
In conclusion, the reduction of General Atlantic, L.P.'s stake in XP Inc is a significant transaction that could influence the stock's performance and the guru's portfolio. Despite the stock's potential value trap status, its GF Score indicates good outperformance potential. Therefore, value investors should monitor the stock closely.
