Hsbc Holdings PLC Makes New Investment in DLocal Limited $DLO

Key Points

• HSBC Holdings PLC disclosed a new first-quarter stake in DLocal, buying 1,390,683 shares valued at about $18.0 million, or roughly 0.47% of the company.
• DLocal reported better-than-expected quarterly results, with EPS of $0.17 versus $0.16 expected and revenue of $335.86 million, up 54.9% year over year.
• Analyst sentiment remains mostly positive: DLocal has an average “Buy” rating and a consensus price target of $17.25, while UBS recently raised its target to $20 and upgraded the stock to Buy.

Hsbc Holdings PLC acquired a new stake in DLocal Limited (NASDAQ:DLO - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 1,390,683 shares of the company's stock, valued at approximately $18,037,000. Hsbc Holdings PLC owned approximately 0.47% of DLocal at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Hussman Strategic Advisors Inc. bought a new stake in shares of DLocal during the fourth quarter valued at approximately $2,969,000. JPMorgan Chase & Co. raised its position in DLocal by 2,144.7% in the 3rd quarter. JPMorgan Chase & Co. now owns 273,400 shares of the company's stock worth $3,904,000 after purchasing an additional 261,220 shares during the last quarter. Maxi Investments CY Ltd lifted its holdings in DLocal by 92.0% during the 4th quarter. Maxi Investments CY Ltd now owns 167,000 shares of the company's stock worth $2,361,000 after buying an additional 80,000 shares in the last quarter. Baillie Gifford & Co. lifted its holdings in DLocal by 12.2% during the 4th quarter. Baillie Gifford & Co. now owns 2,996,660 shares of the company's stock worth $42,373,000 after buying an additional 326,537 shares in the last quarter. Finally, Paradice Investment Management LLC lifted its holdings in DLocal by 93.5% during the 4th quarter. Paradice Investment Management LLC now owns 1,943,360 shares of the company's stock worth $27,479,000 after buying an additional 938,938 shares in the last quarter. 90.13% of the stock is owned by institutional investors.

Insider Activity

In related news, Director Sebastian Kanovich sold 1,000,000 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $14.63, for a total value of $14,630,000.00. Following the completion of the transaction, the director directly owned 1,000,000 shares in the company, valued at approximately $14,630,000. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Rodney Pruett bought 20,000 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were acquired at an average cost of $11.85 per share, with a total value of $237,000.00. Following the completion of the purchase, the director owned 108,043 shares in the company, valued at $1,280,309.55. This represents a 22.72% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 45.44% of the company's stock.

DLocal Stock Performance

Shares of NASDAQ:DLO opened at $14.77 on Wednesday. The company has a market capitalization of $4.36 billion, a PE ratio of 23.44 and a beta of 0.97. DLocal Limited has a 52 week low of $9.81 and a 52 week high of $16.78. The company has a 50 day moving average price of $12.91 and a two-hundred day moving average price of $13.05.

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, topping the consensus estimate of $0.16 by $0.01. DLocal had a return on equity of 41.22% and a net margin of 15.85%.The firm had revenue of $335.86 million for the quarter, compared to analyst estimates of $331.20 million. During the same period in the previous year, the company posted $0.15 earnings per share. The company's revenue for the quarter was up 54.9% on a year-over-year basis. On average, sell-side analysts forecast that DLocal Limited will post 0.81 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research firms have recently commented on DLO. The Goldman Sachs Group reissued a "buy" rating and issued a $17.00 target price on shares of DLocal in a research note on Thursday, April 30th. Truist Financial decreased their price target on DLocal from $16.00 to $15.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. UBS Group upgraded DLocal from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $16.00 to $20.00 in a research report on Wednesday, July 1st. Wall Street Zen lowered DLocal from a "buy" rating to a "hold" rating in a research report on Monday, May 18th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of DLocal in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, DLocal presently has an average rating of "Buy" and an average price target of $17.25.

DLocal 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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