DLocal (NASDAQ:DLO) Shares Gap Up – Should You Buy?

DLocal Limited (NASDAQ:DLO) gapped up before the market opened on Monday . The stock had previously closed at $8.33, but opened at $8.50. DLocal shares last traded at $8.29, with a volume of 94,017 shares changing hands.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Barclays lowered their target price on DLocal from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research note on Monday, March 3rd. Susquehanna increased their target price on DLocal from $14.00 to $16.00 and gave the stock a “positive” rating in a research report on Wednesday, January 29th. The Goldman Sachs Group lifted their price target on DLocal from $9.00 to $10.00 and gave the company a “neutral” rating in a research report on Thursday, February 13th. Morgan Stanley reiterated an “equal weight” rating and set a $10.00 price objective (down from $11.00) on shares of DLocal in a research note on Friday, February 28th. Finally, JPMorgan Chase & Co. upgraded DLocal from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $14.00 to $18.00 in a research note on Wednesday, February 26th. Seven equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, DLocal has a consensus rating of “Hold” and an average target price of $11.94.

DLocal Stock Performance

The company has a 50-day moving average of $11.32 and a 200 day moving average of $10.49. The firm has a market capitalization of $2.47 billion, a PE ratio of 20.89, a PEG ratio of 3.09 and a beta of 0.96. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 0.01.

DLocal (NASDAQ:DLO) last issued its quarterly earnings data on Thursday, February 27th. The company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15. The company had revenue of $204.49 million during the quarter, compared to analyst estimates of $204.98 million. DLocal had a return on equity of 32.59% and a net margin of 16.35%. Equities research analysts predict that DLocal Limited will post 0.47 EPS for the current year.

Institutional Trading of DLocal

A number of hedge funds have recently made changes to their positions in DLO. Baillie Gifford & Co. raised its position in DLocal by 108.5% during the fourth quarter. Baillie Gifford & Co. now owns 2,613,514 shares of the company’s stock valued at $29,428,000 after purchasing an additional 1,360,183 shares in the last quarter. PEAK6 Investments LLC purchased a new position in shares of DLocal during the 3rd quarter valued at about $488,000. JPMorgan Chase & Co. boosted its stake in DLocal by 132.0% in the third quarter. JPMorgan Chase & Co. now owns 493,189 shares of the company’s stock worth $3,946,000 after buying an additional 280,607 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in DLocal in the fourth quarter worth approximately $300,000. Finally, Centiva Capital LP raised its stake in shares of DLocal by 317.8% during the third quarter. Centiva Capital LP now owns 94,512 shares of the company’s stock worth $756,000 after acquiring an additional 71,892 shares in the last quarter. 90.13% of the stock is owned by institutional investors.

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.