DLocal (NASDAQ:DLO) Trading Up 7.1% - Here's What Happened

Key Points

• DLocal Limited shares increased by 7.1% to $15.21 during mid-day trading, significantly up from a previous close of $14.20.
• Several analysts have revised their ratings, with HSBC upgrading the stock to a "buy" and raising the target price to $15.00, while Citigroup set a higher target of $17.00.
• DLocal's most recent earnings report showed a 49.7% year-over-year revenue increase, with earnings per share beating estimates at $0.14 compared to the anticipated $0.13.

DLocal Limited (NASDAQ:DLO - Get Free Report) shares rose 7.1% during mid-day trading on Tuesday . The company traded as high as $15.43 and last traded at $15.21. Approximately 1,309,549 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 1,609,255 shares. The stock had previously closed at $14.20.

Wall Street Analyst Weigh In

Several research firms have commented on DLO. Morgan Stanley set a $15.00 target price on shares of DLocal in a research report on Thursday, August 14th. HSBC upgraded shares of DLocal from a "hold" rating to a "buy" rating and increased their target price for the company from $11.50 to $15.00 in a research note on Thursday, August 14th. Truist Financial raised their price target on shares of DLocal from $12.00 to $14.00 and gave the stock a "hold" rating in a research note on Friday, August 22nd. Wall Street Zen lowered shares of DLocal from a "strong-buy" rating to a "buy" rating in a report on Monday, September 22nd. Finally, Citigroup lifted their target price on shares of DLocal from $14.60 to $17.00 and gave the stock a "buy" rating in a report on Tuesday, September 16th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $15.00.

DLocal Stock Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.46 and a quick ratio of 1.46. The company has a market capitalization of $4.78 billion, a price-to-earnings ratio of 31.86 and a beta of 1.13. The company's 50-day moving average price is $13.85 and its two-hundred day moving average price is $11.41.

DLocal (NASDAQ:DLO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 13th. The company reported $0.14 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.01. DLocal had a net margin of 16.90% and a return on equity of 36.85%. The business had revenue of $256.50 million during the quarter, compared to analysts' expectations of $226.71 million. During the same period last year, the company posted $0.15 earnings per share. The business's quarterly revenue was up 49.7% on a year-over-year basis. DLocal has set its FY 2025 guidance at EPS. On average, equities research analysts anticipate that DLocal Limited will post 0.47 EPS for the current fiscal year.

Hedge Funds Weigh In On DLocal

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mirae Asset Global Investments Co. Ltd. raised its holdings in DLocal by 603.6% during the 1st 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. Activest Wealth Management purchased a new stake in DLocal during the 2nd quarter valued at approximately $80,000. Caption Management LLC grew its holdings in shares of DLocal by 164.7% in the first quarter. Caption Management LLC now owns 11,249 shares of the company's stock valued at $94,000 after purchasing an additional 7,000 shares in the last quarter. Osaic Holdings Inc. lifted its position in DLocal by 17.1% in the second quarter. Osaic Holdings Inc. now owns 9,108 shares of the company's stock worth $103,000 after buying an additional 1,329 shares during the last quarter. Finally, CWM LLC bought a new stake in shares of DLocal during the second quarter worth $113,000. Hedge funds and other institutional investors own 90.13% of the company's stock.

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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