DLocal Limited (DLO) Shares Decline Despite Market Challenges

DLocal Limited (NASDAQ: DLO)’s stock price has dropped by -7.91 in relation to previous closing price of 9.68. Nevertheless, the company has seen a loss of -4.81% in its stock price over the last five trading days. globenewswire.com reported 2025-03-25 that MONTEVIDEO, Uruguay, March 25, 2025 (GLOBE NEWSWIRE) — dLocal (Nasdaq: DLO), a leading cross-border payments platform, announced today that Mark Ortiz will step down from his role as Chief Financial Officer due to an unforeseen health issue that requires attention. The transition will take effect once the company has filed its annual report on Form 20-F including the 2024 annual audited financial statements (and in any event, no later than May 1, 2025).

Is It Worth Investing in DLocal Limited (NASDAQ: DLO) Right Now?

The price-to-earnings ratio for DLocal Limited (NASDAQ: DLO) is above average at 19.73x. The 36-month beta value for DLO is also noteworthy at 0.93. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 7 rating it as “hold,” and 0 rating it as “sell.”

The public float for DLO is 62.60M, and at present, short sellers hold a 14.68% of that float. The average trading volume of DLO on March 26, 2025 was 1.20M shares.

DLO’s Market Performance

DLO’s stock has seen a -4.81% decrease for the week, with a -30.93% drop in the past month and a -22.45% fall in the past quarter. The volatility ratio for the week is 2.87%, and the volatility levels for the past 30 days are at 5.18% for DLocal Limited The simple moving average for the last 20 days is -5.29% for DLO’s stock, with a simple moving average of -7.65% for the last 200 days.

Analysts’ Opinion of DLO

Many brokerage firms have already submitted their reports for DLO stocks, with Morgan Stanley repeating the rating for DLO by listing it as a “Equal-Weight.” The predicted price for DLO in the upcoming period, according to Morgan Stanley is $10 based on the research report published on February 28, 2025 of the current year 2025.

JP Morgan, on the other hand, stated in their research note that they expect to see DLO reach a price target of $18, previously predicting the price at $14. The rating they have provided for DLO stocks is “Overweight” according to the report published on February 26th, 2025.

Goldman gave a rating of “Neutral” to DLO, setting the target price at $8 in the report published on June 26th of the previous year.

DLO Trading at -21.87% from the 50-Day Moving Average

After a stumble in the market that brought DLO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -46.92% of loss for the given period.

Volatility was left at 5.18%, however, over the last 30 days, the volatility rate increased by 2.87%, as shares sank -36.39% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -18.68% lower at present.

During the last 5 trading sessions, DLO fell by -4.86%, which changed the moving average for the period of 200-days by +6.90% in comparison to the 20-day moving average, which settled at $9.41. In addition, DLocal Limited saw -20.87% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at DLO starting from JOHN OBRIEN, who proposed sale 63,066 shares at the price of $10.74 back on Nov 22 ’24. After this action, JOHN OBRIEN now owns shares of DLocal Limited, valued at $677,329 using the latest closing price.

Stock Fundamentals for DLO

Current profitability levels for the company are sitting at:

  • 0.19 for the present operating margin
  • 0.4 for the gross margin

The net margin for DLocal Limited stands at 0.16. The total capital return value is set at 0.28. Equity return is now at value 31.95, with 12.05 for asset returns.

Based on DLocal Limited (DLO), the company’s capital structure generated 0.1 points at debt to capital in total, while cash flow to debt ratio is standing at -0.6. The debt to equity ratio resting at 0.11. The interest coverage ratio of the stock is 3.84.

Currently, EBITDA for the company is 157.9 million with net debt to EBITDA at -2.11. When we switch over and look at the enterprise to sales, we see a ratio of 2.91. The receivables turnover for the company is 1.5for trailing twelve months and the total asset turnover is 0.64. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.50.

Conclusion

In summary, DLocal Limited (DLO) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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