DLocal (NASDAQ:DLO) Sets New 52-Week High on Strong Earnings

Key Points

• DLocal Limited shares hit a new 52-week high of $14.66 after reporting quarterly earnings of $0.14 per share, surpassing estimates of $0.13.
• The company's revenue rose 49.7% year-over-year to $256.50 million, also exceeding analyst expectations of $226.71 million.
• Analysts have set price targets for DLocal stock ranging from $10.00 to $18.00, with an average rating of "Hold."

DLocal Limited (NASDAQ:DLO - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $14.66 and last traded at $14.16, with a volume of 6118427 shares changing hands. The stock had previously closed at $11.69.

The company reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.01. The firm had revenue of $256.50 million during the quarter, compared to the consensus estimate of $226.71 million. DLocal had a net margin of 19.19% and a return on equity of 37.55%. The business's revenue for the quarter was up 49.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.15 EPS.

Analysts Set New Price Targets

A number of analysts have issued reports on DLO shares. Susquehanna boosted their price objective on shares of DLocal from $16.00 to $18.00 and gave the company a "positive" rating in a report on Thursday, May 15th. Citigroup began coverage on shares of DLocal in a report on Tuesday, May 27th. They set a "buy" rating and a $14.60 price target for the company. Truist Financial began coverage on shares of DLocal in a report on Monday, June 2nd. They set a "hold" rating and a $12.00 price target for the company. HSBC raised shares of DLocal from a "hold" rating to a "buy" rating and upped their price target for the stock from $11.50 to $15.00 in a report on Thursday. Finally, UBS Group reaffirmed a "neutral" rating and set a $10.00 price target (up previously from $9.00) on shares of DLocal in a report on Wednesday, July 30th. Six research analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $12.46.

Hedge Funds Weigh In On DLocal

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Lane Generational LLC increased its position in shares of DLocal by 27.5% during the first quarter. Lane Generational LLC now owns 525,530 shares of the company's stock worth $4,383,000 after buying an additional 113,297 shares during the period. J. Goldman & Co LP increased its position in DLocal by 175.5% in the 4th quarter. J. Goldman & Co LP now owns 1,351,181 shares of the company's stock valued at $15,214,000 after buying an additional 860,681 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of DLocal by 603.6% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,053 shares of the company's stock valued at $34,000 after buying an additional 3,477 shares during the last quarter. BNP Paribas Financial Markets acquired a new position in shares of DLocal during the fourth quarter valued at about $5,720,000. Finally, Canada Pension Plan Investment Board acquired a new position in shares of DLocal during the fourth quarter valued at about $25,099,000. 90.13% of the stock is currently owned by institutional investors and hedge funds.

DLocal Price Performance

The stock has a market capitalization of $4.03 billion, a price-to-earnings ratio of 29.01 and a beta of 1.10. The business's fifty day moving average price is $10.78 and its 200-day moving average price is $10.49. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.65 and a quick ratio of 1.65.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods.

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