DLocal (NASDAQ:DLO) Sets New 12-Month High Following Strong Earnings

DLocal Limited (NASDAQ:DLO) shares hit a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $14.66 and last traded at $14.16, with a volume of 6118427 shares trading hands. The stock had previously closed at $11.69.

The company reported $0.14 EPS for the quarter, beating the consensus estimate of $0.13 by $0.01. The firm had revenue of $256.50 million for the quarter, compared to the consensus estimate of $226.71 million. DLocal had a net margin of 16.90% and a return on equity of 36.85%. The company’s revenue was up 49.7% on a year-over-year basis. During the same period last year, the firm earned $0.15 EPS.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on DLO. Citigroup began coverage on shares of DLocal in a report on Tuesday, May 27th. They issued a “buy” rating and a $14.60 price target on the stock. Truist Financial began coverage on shares of DLocal in a report on Monday, June 2nd. They issued a “hold” rating and a $12.00 price target on the stock. Susquehanna lifted their price target on shares of DLocal from $16.00 to $18.00 and gave the company a “positive” rating in a report on Thursday, May 15th. Morgan Stanley set a $15.00 price target on shares of DLocal in a report on Thursday. Finally, UBS Group reiterated a “neutral” rating and issued a $10.00 price target (up from $9.00) on shares of DLocal in a report on Wednesday, July 30th. Five investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $13.51.

Hedge Funds Weigh In On DLocal

A number of large investors have recently made changes to their positions in the company. Azora Capital LP purchased a new stake in DLocal in the 4th quarter valued at about $37,144,000. Canada Pension Plan Investment Board purchased a new stake in DLocal in the 4th quarter valued at about $25,099,000. Marshall Wace LLP boosted its position in DLocal by 64.0% in the 2nd quarter. Marshall Wace LLP now owns 2,683,988 shares of the company’s stock valued at $30,436,000 after buying an additional 1,047,692 shares during the period. J. Goldman & Co LP boosted its position in DLocal by 175.5% in the 4th quarter. J. Goldman & Co LP now owns 1,351,181 shares of the company’s stock valued at $15,214,000 after buying an additional 860,681 shares during the period. Finally, BNP Paribas Financial Markets purchased a new stake in DLocal in the 4th quarter valued at about $5,720,000. 90.13% of the stock is owned by hedge funds and other institutional investors.

DLocal Stock Performance

The company has a market capitalization of $4.47 billion, a PE ratio of 32.63 and a beta of 1.10. The company has a current ratio of 1.46, a quick ratio of 1.65 and a debt-to-equity ratio of 0.01. The firm’s 50-day simple moving average is $10.99 and its 200-day simple moving average is $10.53.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods.