Stock Slump for DLocal in Recent Weeks

In the world of global payments, DLocal, a company connecting some of the largest merchants to over 2 billion people in emerging economies, has seen a significant event this week. The company's shares have decreased by 11% following the announcement of a secondary share offering.

The offering involves the sale of 15 million shares at $12.75 per share, a price point that was the stock's value prior to the news. This move, however, should not be seen as an indictment of DLocal by General Atlantic, the company's largest shareholder, who still holds approximately 49 million shares. General Atlantic made its initial minority investment in DLocal back in 2019.

Despite the recent dip, DLocal's performance has been impressive. The company's total payment volume (TPV) grew by an impressive 53% in its latest quarter. Its gross margin stands at 39.84%, and it offers a suite of over 900-plus payment options.

The secondary offering comes after a 50% increase in DLocal's stock price over the last year, raising questions about whether this could be a good time for selling a stock like DLocal. The 52-week range for DLocal's stock price is between $7.26 and $16.44, with the current stock price sitting at $13.44.

Looking ahead, DLocal is projected to grow its TPV by 40% to 50% in 2025, a promising outlook for the company. Despite the recent decrease in share price, DLocal's current valuation remains at 21 times free cash flow, which some analysts argue could make it a great long-term buy.

It's worth noting that investing groups like General Atlantic have various reasons for selling a stock. The average volume of shares traded for DLocal is 2,238,013, with the volume for today being 5,494,588. The day's range for DLocal's stock price is between $12.78 and $13.48.

As for the volume of shares traded, it's important to remember that market fluctuations are common and should not be interpreted as a reflection of the company's fundamentals. For long-term investors, the company's strong growth prospects and solid financial performance may still make DLocal an attractive investment opportunity.

However, potential investors are advised to conduct thorough research and consider seeking financial advice before making investment decisions. The specifics of the secondary offering, such as the identity of the other investment groups involved, are not yet clear. Further information about the number of shares held by General Atlantic after the offering is also not available at this time.