DLocal (NASDAQ:DLO) Sees Large Volume Increase After Strong Earnings

DLocal Limited (NASDAQ:DLO) shares saw an uptick in trading volume on Friday following a stronger than expected earnings report. 1,416,134 shares changed hands during trading, a decline of 7% from the previous session’s volume of 1,515,461 shares.The stock last traded at $11.60 and had previously closed at $12.66.

The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.16 by $0.01. The business had revenue of $335.86 million for the quarter, compared to analysts’ expectations of $331.20 million. DLocal had a return on equity of 40.40% and a net margin of 18.00%.The firm’s revenue was up 54.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.15 earnings per share.

DLocal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th will be paid a $0.1939 dividend. This represents a $0.78 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend is Wednesday, May 27th.

Wall Street Analysts Forecast Growth

DLO has been the subject of a number of analyst reports. JPMorgan Chase & Co. lowered their target price on shares of DLocal from $18.50 to $18.00 and set an “overweight” rating for the company in a research note on Monday, February 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of DLocal in a report on Monday, April 20th. The Goldman Sachs Group reissued a “buy” rating and issued a $17.00 price objective on shares of DLocal in a research report on Thursday, April 30th. Wall Street Zen raised DLocal from a “hold” rating to a “buy” rating in a research note on Sunday, May 10th. Finally, Truist Financial cut their target price on DLocal from $17.00 to $15.00 and set a “buy” rating on the stock in a research report on Tuesday, March 17th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $16.63.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. IFP Advisors Inc bought a new position in shares of DLocal during the 3rd quarter worth about $26,000. Caitong International Asset Management Co. Ltd increased its position in DLocal by 114.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,826 shares of the company’s stock valued at $26,000 after buying an additional 975 shares in the last quarter. Global Retirement Partners LLC acquired a new position in DLocal during the 3rd quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new position in DLocal during the 4th quarter worth approximately $40,000. Finally, Banque Cantonale Vaudoise bought a new position in DLocal in the first quarter worth approximately $42,000. 90.13% of the stock is owned by institutional investors.

DLocal Price Performance

The firm has a fifty day simple moving average of $12.81 and a 200-day simple moving average of $13.37. The firm has a market cap of $3.40 billion, a P/E ratio of 17.99 and a beta of 1.04.

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.