DLocal Limited (NASDAQ:DLO) Receives Consensus Rating of "Buy" from Brokerages

Key Points

• Analysts maintain a bullish view of DLocal: Eight brokerages give the stock a consensus “Buy” rating, with six buys, one strong buy and one hold. The average 12-month price target is $17.50.
• DLocal reported quarterly adjusted earnings of $0.17 per share, exceeding estimates, while revenue rose 54.9% year over year to $335.86 million. Analysts expect full-year earnings of $0.81 per share.
• Insider and institutional activity was mixed: one director bought $237,000 of shares, another sold $398,350 under a Rule 10b5-1 plan, while institutional investors own 90.13% of the company.

Shares of DLocal Limited (NASDAQ:DLO - Get Free Report) have been assigned an average recommendation of "Buy" from the eight brokerages that are covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $17.50.

Several research analysts have commented on DLO shares. Wall Street Zen downgraded shares of DLocal from a "buy" rating to a "hold" rating in a report on Monday, May 18th. UBS Group raised DLocal from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $16.00 to $20.00 in a report on Wednesday, July 1st. The Goldman Sachs Group reiterated a "buy" rating and issued a $17.00 target price on shares of DLocal in a research report on Thursday, April 30th. Truist Financial increased their price target on DLocal from $15.00 to $17.00 and gave the company a "buy" rating in a research note on Friday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of DLocal in a research note on Friday, July 17th.

Insider Activity at DLocal

In other DLocal news, Director William Rodney Pruett purchased 20,000 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The shares were bought at an average price of $11.85 per share, with a total value of $237,000.00. Following the completion of the purchase, the director directly owned 108,043 shares in the company, valued at $1,280,309.55. This trade represents a 22.72% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Sebastian Kanovich sold 25,700 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $15.50, for a total transaction of $398,350.00. Following the transaction, the director owned 25,700 shares of the company's stock, valued at $398,350. This trade represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 45.44% of the stock is owned by corporate insiders.

Institutional Trading of DLocal

Large investors have recently made changes to their positions in the business. Royal Bank of Canada lifted its holdings in shares of DLocal by 562.7% in the 1st quarter. Royal Bank of Canada now owns 48,668 shares of the company's stock valued at $406,000 after acquiring an additional 41,324 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of DLocal by 4.1% in the first quarter. Goldman Sachs Group Inc. now owns 575,111 shares of the company's stock valued at $4,796,000 after acquiring an additional 22,803 shares during the period. Empowered Funds LLC raised its stake in shares of DLocal by 2.7% in the first quarter. Empowered Funds LLC now owns 48,688 shares of the company's stock valued at $406,000 after acquiring an additional 1,281 shares during the period. Geode Capital Management LLC lifted its holdings in shares of DLocal by 0.8% in the 2nd quarter. Geode Capital Management LLC now owns 142,677 shares of the company's stock worth $1,618,000 after acquiring an additional 1,130 shares during the last quarter. Finally, Quantbot Technologies LP bought a new stake in shares of DLocal in the 2nd quarter worth about $254,000. 90.13% of the stock is currently owned by institutional investors.

DLocal Stock Performance

Shares of NASDAQ:DLO opened at $14.49 on Monday. The firm has a fifty day moving average price of $13.05 and a 200 day moving average price of $13.05. DLocal has a fifty-two week low of $9.81 and a fifty-two week high of $16.78. The firm has a market cap of $4.27 billion, a price-to-earnings ratio of 23.00 and a beta of 0.97.

DLocal (NASDAQ:DLO - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.01. The company had revenue of $335.86 million during the quarter, compared to analysts' expectations of $331.20 million. DLocal had a net margin of 15.85% and a return on equity of 41.22%. DLocal's quarterly revenue was up 54.9% on a year-over-year basis. During the same period last year, the company posted $0.15 earnings per share. As a group, research analysts predict that DLocal will post 0.81 earnings per share for the current year.

DLocal Company Profile

dLocal is a fintech company specializing in cross-border payments and payouts for global merchants operating in emerging markets. Headquartered in Montevideo, Uruguay, the company offers a technology platform that simplifies complex payment flows, enabling businesses to connect with local payment methods through a single integration.

The dLocal platform supports a wide range of local payment options, including credit and debit cards, bank transfers, e-wallets and cash-based methods. It incorporates risk-management tools, compliance services and anti-fraud solutions to help clients navigate regulatory requirements and minimize payment failures across diverse jurisdictions.

dLocal serves merchants in sectors such as e-commerce, online marketplaces, digital content and gig economy platforms.

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