The share price of DLocal Limited (NASDAQ:DLO) fell to $15.84 per share on Tuesday from $15.88. While DLocal Limited has underperformed by -0.25%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, DLO fell by -49.07%, with highs and lows ranging from $36.88 to $9.03, whereas the simple moving average fell by -32.07% in the last 200 days.
On December 22, 2022, BofA Securities started tracking DLocal Limited (NASDAQ: DLO) recommending Buy. A report published by New Street on December 21, 2022, Downgraded its rating to ‘Neutral’ for DLO. SMBC Nikko also Downgraded DLO shares as ‘Underperform’, setting a target price of $22 on the company’s shares in a report dated September 26, 2022. Piper Sandler initiated its ‘Overweight’ rating for DLO, as published in its report on April 14, 2022. UBS’s report from February 10, 2022 suggests a price prediction of $44 for DLO shares, giving the stock a ‘Buy’ rating. HSBC Securities also rated the stock as ‘Buy’.
Analysis of DLocal Limited (DLO)
Further, the quarter-over-quarter increase in sales is 63.10%, showing a positive trend in the upcoming months.
To gain a thorough understanding of DLocal Limited’s future performance, several well-rounded types of analysis and research techniques can be used, with equity being among the most crucial. The goal here is to ensure that your current return on equity of 34.40% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.70, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
It is also very valuable to look at average volume as an indicator of volatility for a stock, and DLO is recording an average volume of 4.25M. On a monthly basis, the volatility of the stock is set at 5.65%, whereas on a weekly basis, it is put at 4.63%, with a gain of 3.06% over the past seven days. Furthermore, long-term investors anticipate a median target price of $23.11, showing growth from the present price of $15.84, which can serve as yet another indication of whether DLO is worth investing in or should be passed over.
How Do You Analyze DLocal Limited Shares?
A leading company in the Software – Infrastructure sector, DLocal Limited (DLO) is based in the Uruguay. When comparing DLocal Limited shares with other companies under Technology, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 44.25, there is a growth in quarterly earnings of 65.10%.
The number of employees owning shares of the company should also be considered in addition to the fundamentals. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 9.32%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 91.10% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in DLO shares?
The recent increase in stakes in DLO appears to be a result of several institutional investors and hedge funds increasing their positions. Fidelity Management & Research Co’s position in DLO has decreased by -2.35% in the first quarter. The company now owns 10,546,896 shares of the stock, with a value of $153.98 million, following the sale of -253,646 additional shares during the last quarter. Jennison Associates LLC made another decreased to its shares in DLO during the first quarter, downing its stake by -2.07%. During the last quarter, the company picked up -160,941 additional shares for a total stake of worth $110.9 million, bringing number of shares owned by the company to 7,596,050.
During the first quarter, D1 Capital Partners LP added a 425,659 position in DLO. Tiger Global Management LLC purchased an additional 2.44 million shares in the last quarter, increasing its holdings by 132.08%, now holding 4.29 million shares worth $62.67 million. At the end of the first quarter, Eventide Asset Management LLC increased its DLO holdings by 15.46% and now holds 3.94 million DLO shares valued at $57.57 million with the added 0.53 million shares during the period. DLO shares are owned by institutional investors to the tune of 91.10% at present.