DLocal (NASDAQ:DLO) Trading Down 8.9% After Analyst Downgrade

Shares of DLocal Limited (NASDAQ:DLO) were down 8.9% on Tuesday after Barclays lowered their price target on the stock from $10.00 to $9.00. Barclays currently has an equal weight rating on the stock. DLocal traded as low as $9.01 and last traded at $8.90. Approximately 322,274 shares traded hands during trading, a decline of 75% from the average daily volume of 1,305,053 shares. The stock had previously closed at $9.77.

Several other equities research analysts also recently issued reports on DLO. JPMorgan Chase & Co. upgraded DLocal from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $14.00 to $18.00 in a research report on Wednesday, February 26th. Morgan Stanley restated an “equal weight” rating and issued a $10.00 target price (down previously from $11.00) on shares of DLocal in a research note on Friday. Susquehanna lifted their target price on DLocal from $14.00 to $16.00 and gave the company a “positive” rating in a report on Wednesday, January 29th. Finally, The Goldman Sachs Group increased their price target on shares of DLocal from $9.00 to $10.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. Seven investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $11.94.

Hedge Funds Weigh In On DLocal

A number of large investors have recently added to or reduced their stakes in the business. Azora Capital LP bought a new position in shares of DLocal during the fourth quarter valued at about $37,144,000. Baillie Gifford & Co. boosted its holdings in DLocal by 108.5% during the 4th quarter. Baillie Gifford & Co. now owns 2,613,514 shares of the company’s stock valued at $29,428,000 after acquiring an additional 1,360,183 shares during the period. Canada Pension Plan Investment Board bought a new position in DLocal during the 4th quarter worth approximately $25,099,000. J. Goldman & Co LP increased its stake in DLocal by 175.5% in the 4th quarter. J. Goldman & Co LP now owns 1,351,181 shares of the company’s stock worth $15,214,000 after purchasing an additional 860,681 shares during the period. Finally, Balyasny Asset Management L.P. lifted its position in DLocal by 82.1% in the fourth quarter. Balyasny Asset Management L.P. now owns 987,978 shares of the company’s stock valued at $11,125,000 after purchasing an additional 445,549 shares during the last quarter. Hedge funds and other institutional investors own 90.13% of the company’s stock.

DLocal Stock Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.54 and a quick ratio of 1.54. The business has a 50 day moving average price of $12.24 and a two-hundred day moving average price of $10.43. The stock has a market cap of $2.66 billion, a PE ratio of 22.47, a price-to-earnings-growth ratio of 3.09 and a beta of 0.90.

DLocal (NASDAQ:DLO) last announced its quarterly earnings results on Thursday, February 27th. The company reported $0.15 earnings per share for the quarter, meeting the consensus estimate of $0.15. DLocal had a net margin of 16.35% and a return on equity of 32.59%. The business had revenue of $204.49 million during the quarter, compared to analysts’ expectations of $204.98 million. As a group, equities research analysts forecast that DLocal Limited will post 0.47 EPS for the current fiscal year.

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.