DLocal (NASDAQ:DLO) Shares Gap Up - Here's What Happened

Key Points

• DLocal shares jumped, opening at $14.85 versus a prior close of $13.74 and last trading near $14.79 on volume of about 390,000 shares.
• Analyst sentiment is favorable: five analysts rate DLocal a Buy and one a Hold, producing a consensus “Moderate Buy” rating and an average price target of $19.20.
• DLocal exceeded quarterly revenue expectations, reporting $399.66 million in revenue—up 55.9% year over year—while matching the consensus EPS estimate of $0.18.

DLocal Limited (NASDAQ:DLO - Get Free Report)'s share price gapped up prior to trading on Monday. The stock had previously closed at $13.74, but opened at $14.85. DLocal shares last traded at $14.7890, with a volume of 390,123 shares traded.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on DLO. Weiss Ratings upgraded DLocal from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 17th. The Goldman Sachs Group increased their target price on DLocal from $17.00 to $19.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. UBS Group raised DLocal from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $16.00 to $20.00 in a research report on Wednesday, July 1st. Finally, Truist Financial upped their price target on shares of DLocal from $17.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $19.20.

DLocal Price Performance

The stock has a market cap of $4.35 billion, a PE ratio of 22.01 and a beta of 0.86. The company has a 50 day moving average price of $14.63 and a two-hundred day moving average price of $13.59.

DLocal (NASDAQ:DLO - Get Free Report) last issued its earnings results on Friday, August 14th. The company reported $0.18 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.18. The company had revenue of $399.66 million for the quarter, compared to analysts' expectations of $366.77 million. DLocal had a net margin of 15.04% and a return on equity of 41.64%. The firm's quarterly revenue was up 55.9% on a year-over-year basis. During the same quarter last year, the company posted $0.14 earnings per share. As a group, equities analysts predict that DLocal Limited will post 0.81 earnings per share for the current fiscal year.

Insider Activity at DLocal

In related news, Director Sebastian Kanovich sold 72,753 shares of DLocal stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $15.54, for a total value of $1,130,581.62. Following the completion of the sale, the director owned 4,700 shares of the company's stock, valued at $73,038. The trade was a 93.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 103,153 shares of company stock valued at $1,601,782 over the last three months. Insiders own 45.44% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Hsbc Holdings PLC bought a new position in DLocal in the first quarter worth approximately $18,037,000. Wellington Management Group LLP bought a new stake in shares of DLocal during the 2nd quarter valued at $19,399,000. BNP Paribas Financial Markets increased its stake in shares of DLocal by 18.6% in the 4th quarter. BNP Paribas Financial Markets now owns 592,833 shares of the company's stock worth $8,383,000 after purchasing an additional 93,110 shares in the last quarter. Bond Capital Management LP purchased a new stake in shares of DLocal in the 2nd quarter worth $12,048,000. Finally, Tikvah Management LLC raised its holdings in DLocal by 13.8% in the 2nd quarter. Tikvah Management LLC now owns 1,420,822 shares of the company's stock worth $18,464,000 after purchasing an additional 172,500 shares during the period. 90.13% of the stock is owned by hedge funds and other institutional investors.

DLocal Company Profile

dLocal is a global payments technology company that provides businesses with access to consumers in emerging markets. Its platform enables international merchants to accept local payments, send funds, and manage cross-border transactions through a single integration, helping reduce the complexity of working with multiple payment methods, currencies, and financial systems.

The company's services include pay-ins, which allow consumers to purchase goods and services using locally preferred payment methods, and payouts, which enable businesses to distribute funds to customers, workers, sellers, and other recipients.

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