DLocal (NASDAQ:DLO) Stock Breaks Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• DLocal shares fell below their 200-day moving average, trading as low as $12.87 and last changing hands at $12.96, down 5.1%.
• Despite the technical weakness, analysts remain bullish: all six covering analysts rate the stock a Buy, with a consensus price target of $19.00.
• DLocal reported solid operating results, including revenue growth of 55.9% year over year and quarterly EPS of $0.18, matching estimates; institutional ownership stands at 90.13%.

DLocal Limited (NASDAQ:DLO - Get Free Report) shares crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $13.55 and traded as low as $12.87. DLocal shares last traded at $12.96, with a volume of 2,328,470 shares changing hands.

Analysts Set New Price Targets

DLO has been the topic of several recent analyst reports. The Goldman Sachs Group increased their target price on shares of DLocal from $17.00 to $19.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Truist Financial cut their price target on DLocal from $18.00 to $17.00 and set a "buy" rating for the company in a research note on Friday, October 23rd. Finally, Weiss Ratings upgraded 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.com, the company presently has a consensus rating of "Buy" and a consensus price target of $19.00.

DLocal Trading Down 5.1%

The stock has a market cap of $3.82 billion, a PE ratio of 19.34 and a beta of 0.86. The business has a 50-day moving average price of $14.63 and a 200-day moving average price of $13.55.

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

Insider Activity

In other news, Director Sebastian Kanovich sold 72,753 shares of DLocal 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 sale, the director owned 4,700 shares in the company, valued at $73,038. This trade represents a 93.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 45.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Wellington Management Group LLP purchased a new stake in DLocal during the 2nd quarter worth approximately $19,399,000. Hsbc Holdings PLC purchased a new position in shares of DLocal in the first quarter valued at approximately $18,037,000. Bond Capital Management LP purchased a new position in shares of DLocal in the second quarter valued at approximately $12,048,000. Absolute Gestao de Investimentos Ltda. purchased a new position in shares of DLocal in the first quarter valued at approximately $11,623,000. Finally, CWA Asset Management Group LLC acquired a new stake in shares of DLocal in the third quarter worth approximately $2,420,000. 90.13% of the stock is owned by hedge funds and other institutional investors.

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.

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