DLocal (NASDAQ:DLO) Shares Gap Down After Analyst Downgrade

Key Points

• DLocal shares fell sharply after Truist Financial cut its price target from $18 to $17, opening at $13.80 versus the prior close of $15.06. Truist maintained a Buy rating.
• Despite the downgrade, analyst sentiment remains positive: six analysts rate DLocal Buy, with a consensus target price of $19.00; UBS and Goldman Sachs recently raised their targets.
• DLocal reported quarterly revenue of $399.66 million, up 55.9% year over year and above estimates, while EPS of $0.18 matched consensus. Institutional investors own 90.13% of the company, and an insider recently sold 72,753 shares.

DLocal Limited (NASDAQ:DLO - Get Free Report) shares gapped down prior to trading on Monday after Truist Financial lowered their price target on the stock from $18.00 to $17.00. The stock had previously closed at $15.06, but opened at $13.80. Truist Financial currently has a buy rating on the stock. DLocal shares last traded at $14.0380, with a volume of 911,478 shares changing hands.

Other analysts have also issued research reports about the stock. UBS Group raised shares of DLocal from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $16.00 to $20.00 in a research report on Wednesday, July 1st. The Goldman Sachs Group raised their target price on shares of DLocal from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Finally, Weiss Ratings upgraded shares of DLocal from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Six equities research analysts have rated the stock with a Buy rating. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $19.00.

Insider Buying and Selling

In other DLocal news, Director Sebastian Kanovich sold 72,753 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $15.54, for a total value of $1,130,581.62. Following the transaction, the director directly owned 4,700 shares of the company's stock, valued at $73,038. This represents a 93.93% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 45.44% of the company's stock.

Institutional Investors Weigh In On DLocal

A number of institutional investors have recently made changes to their positions in DLO. Wellington Management Group LLP bought a new position in shares of DLocal during the second quarter valued at $19,399,000. Hsbc Holdings PLC bought a new stake in shares of DLocal in the first quarter worth $18,037,000. Bond Capital Management LP bought a new stake in shares of DLocal in the second quarter worth $12,048,000. Absolute Gestao de Investimentos Ltda. acquired a new stake in DLocal in the first quarter valued at $11,623,000. Finally, SG Americas Securities LLC increased its holdings in DLocal by 4,760.6% in the first quarter. SG Americas Securities LLC now owns 466,570 shares of the company's stock valued at $6,051,000 after purchasing an additional 456,971 shares during the period. Institutional investors own 90.13% of the company's stock.

DLocal Price Performance

The firm has a market capitalization of $4.19 billion, a price-to-earnings ratio of 21.22 and a beta of 0.86. The stock has a fifty day moving average of $14.68 and a two-hundred day moving average of $13.85.

DLocal (NASDAQ:DLO - Get Free Report) last announced its earnings results on Friday, August 14th. The company reported $0.18 EPS for the quarter, hitting the consensus estimate of $0.18. DLocal had a return on equity of 41.64% and a net margin of 15.04%. The firm had revenue of $399.66 million for the quarter, compared to the consensus estimate of $366.77 million. During the same period in the previous year, the business earned $0.14 EPS. The business's quarterly revenue was up 55.9% compared to the same quarter last year. On average, research analysts forecast that DLocal Limited will post 0.80 EPS for the current year.

DLocal Company Profile

DLocal is a Uruguay-based financial technology company that provides cross-border payment solutions for businesses operating in emerging markets. Its platform connects global merchants with local payment systems, enabling them to accept payments from consumers and send funds to individuals, businesses and service providers in local currencies.

The company's services include payment collection, local acquiring, payouts and access to alternative payment methods such as bank transfers, digital wallets and cash-based options.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.