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XP Inc. (NASDAQ:XP), a brokerage and financial services firm with a market capitalization of $7.6 billion and strong revenue growth of 14.1%, has publicly addressed recent allegations made by a short seller. In a press release dated March 12, 2025, the company firmly refuted claims questioning its financial health and operational integrity. According to InvestingPro data, XP maintains a "GOOD" overall financial health score, supported by a robust gross profit margin of 68.85%.
The statement was filed with the U.S. Securities and Exchange Commission on Wednesday, March 12, 2025, and was disclosed in a Form 6-K, which is a report of foreign private issuers pursuant to rules 13a-16 or 15d-16 under the Securities Exchange Act of 1934. InvestingPro analysis reveals that management has been actively demonstrating confidence through aggressive share buybacks, with detailed insights available in the Pro Research Report, part of the comprehensive analysis covering 1,400+ US equities.
Victor Mansur, the Chief Financial Officer of XP Inc., signed the document, asserting the company’s commitment to transparency and regulatory compliance. The release emphasized that XP Inc. adheres to high standards of corporate governance and financial reporting.
The company has not provided specific details regarding the content of the short seller’s accusations but has stated that the allegations are baseless and without merit. XP Inc. reassured investors and stakeholders that its financial statements are accurate and can be relied upon.
The response from XP Inc. comes at a time when the financial industry is under increased scrutiny from regulators and investors alike. As a company listed on the NASDAQ, XP Inc. is required to maintain rigorous financial reporting standards and is subject to regular audits.
As per the company’s policy and regulatory requirements, XP Inc. will continue to file annual reports under the cover of Form 20-F. The company’s business address is located at 20 Genesis Close, Grand Cayman, George Town, Cayman Islands, KY-1-1208.
Investors and market observers are closely watching the situation as it unfolds. XP Inc.’s proactive approach to addressing the allegations reflects its efforts to maintain investor confidence and uphold its reputation in the financial services sector. The company currently trades at a P/E ratio of 10.26, and analysis from InvestingPro indicates the stock is currently undervalued, with additional ProTips and detailed valuation metrics available to subscribers.
This news is based on a press release statement and has been reported in accordance with the guidelines for unbiased and factual news writing.
In other recent news, XP Inc. has been at the center of several significant developments. Allegations from Grizzly Research have accused the company of operating a "Madoff-like Ponzi scheme," focusing on its financial practices related to the GLADIUS FIM CP IE fund. The report claims that without profits from GLADIUS and an affiliated fund, XP Inc. would reportedly be unprofitable. Additionally, rumors have surfaced about a potential negative report from Hindenburg Research, further unsettling investors. These rumors, although unconfirmed, have contributed to heightened caution among market participants.
Amidst these challenges, UBS analyst Thiago Batista has upgraded XP Inc.’s stock rating from Neutral to Buy, while lowering the price target to $16. Batista’s upgrade reflects a positive outlook on the company’s valuation, suggesting that the challenging macroeconomic conditions in Brazil have been fully priced in. The analyst also noted XP Inc.’s strategic shift towards expanding its business-to-consumer operations as a potential positive development. Despite the lowered price target, the Buy rating indicates confidence in XP Inc.’s ability to navigate the current economic landscape.
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