DLocal (NASDAQ:DLO) Shares Gap Up – Time to Buy?

DLocal Limited (NASDAQ:DLO) shares gapped up before the market opened on Wednesday . The stock had previously closed at $12.99, but opened at $13.64. DLocal shares last traded at $14.4410, with a volume of 1,094,971 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on DLO. Weiss Ratings restated a “hold (c)” rating on shares of DLocal in a research report on Monday, April 20th. Wall Street Zen cut DLocal from a “buy” rating to a “hold” rating in a research note on Monday, May 18th. The Goldman Sachs Group restated a “buy” rating and set a $17.00 target price on shares of DLocal in a research report on Thursday, April 30th. Truist Financial cut their price target on DLocal from $16.00 to $15.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Finally, 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. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, DLocal presently has an average rating of “Buy” and an average price target of $17.25.

DLocal Price Performance

The company has a market capitalization of $4.39 billion, a P/E ratio of 23.62 and a beta of 0.97. The business’s 50-day moving average price is $12.58 and its two-hundred day moving average price is $13.00.

DLocal (NASDAQ:DLO) last released its quarterly earnings data on Thursday, May 14th. The company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01. The business had revenue of $335.86 million during the quarter, compared to analysts’ expectations of $331.20 million. DLocal had a net margin of 15.85% and a return on equity of 41.22%. The firm’s quarterly revenue was up 54.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.15 EPS. Research analysts expect that DLocal Limited will post 0.81 earnings per share for the current fiscal year.

Insider Activity

In other DLocal news, Director Sebastian Kanovich sold 1,000,000 shares of the stock in a transaction dated 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 sale, the director directly owned 1,000,000 shares in the company, valued at $14,630,000. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Rodney Pruett purchased 20,000 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were acquired at an average cost of $11.85 per share, for a total transaction of $237,000.00. Following the transaction, the director owned 108,043 shares of the company’s stock, valued at $1,280,309.55. This trade represents a 22.72% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 45.44% of the stock is owned by corporate insiders.

Institutional Trading of DLocal

Large investors have recently bought and sold shares of the business. Royal Bank of Canada raised its holdings in DLocal by 562.7% during the 1st quarter. Royal Bank of Canada now owns 48,668 shares of the company’s stock worth $406,000 after buying an additional 41,324 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of DLocal by 4.1% in the first quarter. Goldman Sachs Group Inc. now owns 575,111 shares of the company’s stock valued at $4,796,000 after buying an additional 22,803 shares during the period. Empowered Funds LLC increased its position in shares of DLocal by 2.7% during the first quarter. Empowered Funds LLC now owns 48,688 shares of the company’s stock worth $406,000 after acquiring an additional 1,281 shares in the last quarter. Geode Capital Management LLC increased its position in shares of DLocal by 0.8% during the second quarter. Geode Capital Management LLC now owns 142,677 shares of the company’s stock worth $1,618,000 after acquiring an additional 1,130 shares in the last quarter. Finally, Quantbot Technologies LP acquired a new stake in shares of DLocal during the second quarter worth $254,000. 90.13% of the stock is owned by institutional investors.

About DLocal

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.