DLocal Sees Unusually Large Options Volume (NASDAQ:DLO)

Key Points

• Investors bought 4,723 DLocal call options on Friday, 54% above the typical daily volume.
• Analysts maintain a Moderate Buy consensus, with an average price target of $19; five rate the stock Buy and one Hold.
• DLocal beat quarterly EPS estimates ($0.23 versus $0.21) and reported 40.9% year-over-year revenue growth, though revenue fell short of consensus.

DLocal Limited (NASDAQ:DLO - Get Free Report) was the target of some unusual options trading on Friday. Investors purchased 4,723 call options on the stock. This represents an increase of 54% compared to the typical daily volume of 3,068 call options.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Bank of America Corp DE raised its position in shares of DLocal by 0.3% during the 1st quarter. Bank of America Corp DE now owns 4,073,358 shares of the company's stock worth $52,831,000 after acquiring an additional 13,536 shares in the last quarter. Wellington Management Group LLP acquired a new position in DLocal in the second quarter valued at approximately $19,399,000. Tikvah Management LLC boosted its holdings in DLocal by 13.8% in the second quarter. Tikvah Management LLC now owns 1,420,822 shares of the company's stock valued at $18,464,000 after purchasing an additional 172,500 shares in the last quarter. Hsbc Holdings PLC purchased a new position in DLocal in the first quarter valued at approximately $18,037,000. Finally, M&G PLC increased its stake in DLocal by 178.5% in the third quarter. M&G PLC now owns 1,150,280 shares of the company's stock valued at $16,104,000 after purchasing an additional 737,218 shares during the last quarter. 90.13% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently commented on DLO. Truist Financial lowered their target price on DLocal from $18.00 to $17.00 and set a "buy" rating for the company in a research note on Friday, October 23rd. Weiss Ratings lowered DLocal from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, November 2nd. Finally, The Goldman Sachs Group lifted 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. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $19.00.

DLocal Price Performance

Shares of DLO traded up $0.13 during midday trading on Friday, reaching $13.83. The stock had a trading volume of 2,221,948 shares, compared to its average volume of 2,057,583. The company has a market cap of $4.08 billion, a price-to-earnings ratio of 20.64 and a beta of 0.95. The company's fifty day simple moving average is $14.37 and its two-hundred day simple moving average is $13.53. DLocal has a 1-year low of $10.64 and a 1-year high of $16.15.

DLocal (NASDAQ:DLO - Get Free Report) last issued its earnings results on Thursday, November 12th. The company reported $0.23 EPS for the quarter, topping analysts' consensus estimates of $0.21 by $0.02. DLocal had a net margin of 15.04% and a return on equity of 41.64%. The firm had revenue of $398.05 million during the quarter, compared to the consensus estimate of $408.48 million. During the same quarter in the previous year, the firm posted $0.17 earnings per share. The company's revenue was up 40.9% compared to the same quarter last year. On average, sell-side analysts forecast that DLocal will post 0.80 earnings per share for the current year.

DLocal Company Profile

DLocal is a payments technology company that helps global businesses accept and send payments in emerging markets. Its platform connects merchants with local payment systems, allowing them to manage transactions across multiple countries through a single integration. The company's services include payment collection, or pay-ins, and disbursements, or pay-outs. It supports local payment options such as cards, bank transfers, digital wallets and cash-based methods, helping businesses serve customers who may not use international payment networks.

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