DLocal Limited (NASDAQ:DLO) Stock Rated "Buy" by Wall Street Analysts

Key Points

• Analysts unanimously rate DLocal a “Buy”: Six firms cover the stock, with an average 12-month price target of $19.20. Recent upgrades and target increases came from Weiss Ratings, Goldman Sachs, Truist Financial, and UBS.
• DLocal reported strong operating growth: Quarterly revenue rose 55.9% year over year to $399.66 million, exceeding estimates of $366.77 million, while earnings per share matched expectations at $0.18.
• The stock opened at $15.23, giving it potential upside to analysts’ average target, while institutional investors own 90.13% of shares. Director Sebastian Kanovich also sold 72,753 shares under a pre-arranged trading plan.

DLocal Limited (NASDAQ:DLO - Get Free Report) has received a consensus rating of "Buy" from the six research firms that are covering the stock, MarketBeat reports. Six analysts have rated the stock with a buy recommendation. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $19.20.

DLO has been the topic of several research analyst reports. Weiss Ratings raised DLocal from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday. The Goldman Sachs Group raised their price objective on DLocal from $17.00 to $19.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Truist Financial boosted their target price on DLocal from $17.00 to $18.00 and gave the stock a "buy" rating in a research report on Thursday, August 27th. Finally, UBS Group upgraded DLocal from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $16.00 to $20.00 in a research report on Wednesday, July 1st.

DLocal Stock Up 1.5%

Shares of NASDAQ DLO opened at $15.23 on Friday. The stock has a market capitalization of $4.49 billion, a price-to-earnings ratio of 22.73 and a beta of 0.86. DLocal has a 52 week low of $10.64 and a 52 week high of $16.78. The firm has a 50-day moving average price of $14.62 and a 200 day moving average price of $13.68.

DLocal (NASDAQ:DLO - Get Free Report) last issued its earnings results on Friday, August 14th. The company reported $0.18 earnings per share for the quarter, hitting the consensus estimate of $0.18. DLocal had a net margin of 15.04% and a return on equity of 41.64%. The company had revenue of $399.66 million for the quarter, compared to analyst estimates of $366.77 million. During the same period in the prior year, the business posted $0.14 earnings per share. The firm's revenue for the quarter was up 55.9% compared to the same quarter last year. Equities research analysts expect that DLocal will post 0.81 EPS for the current fiscal year.

Insider Activity

In related news, Director Sebastian Kanovich sold 72,753 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $15.54, for a total value of $1,130,581.62. Following the sale, the director directly owned 4,700 shares in the company, valued at $73,038. The trade was a 93.93% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 45.44% of the stock is owned by company insiders.

Hedge Funds Weigh In On DLocal

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DLO. Bank of America Corp DE lifted its holdings in shares of DLocal by 0.3% in the first quarter. Bank of America Corp DE now owns 4,073,358 shares of the company's stock valued at $52,831,000 after purchasing an additional 13,536 shares in the last quarter. Atmos Capital Gestao DE Recursos LTDA. purchased a new position in shares of DLocal during the 4th quarter worth approximately $27,064,000. Fourth Sail Capital LP raised its position in shares of DLocal by 54.8% during the 4th quarter. Fourth Sail Capital LP now owns 1,823,873 shares of the company's stock worth $25,790,000 after purchasing an additional 645,873 shares during the last quarter. Azora Capital LP acquired a new position in shares of DLocal during the 4th quarter worth approximately $21,888,000. Finally, Wellington Management Group LLP purchased a new stake in DLocal in the 2nd quarter valued at approximately $19,399,000. Institutional investors and hedge funds own 90.13% of the company's stock.

About DLocal

dLocal is a global payments technology company that provides businesses with access to consumers in emerging markets. Its platform enables international merchants to accept local payments, send funds, and manage cross-border transactions through a single integration, helping reduce the complexity of working with multiple payment methods, currencies, and financial systems.

The company's services include pay-ins, which allow consumers to purchase goods and services using locally preferred payment methods, and payouts, which enable businesses to distribute funds to customers, workers, sellers, and other recipients.

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