Shares of payments platform DLocal (NASDAQ:DLO) were up in morning trading on Tuesday after the company announced a stock buyback and a response to a short seller report by Muddy Waters capital.
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DLO has reviewed the allegations by Muddy Waters and its management is also undertaking a review with the help of professional advisors to review the allegations.
The company clarified that it maintains separate accounts for merchant cash and its own cash and has not used merchants’ cash to dole out dividends or give out loans.
Separately, DLO also announced a share repurchase program of up to $100 million. Moreover, in a move that indicates confidence in the company, a number of names including General Atlantic DO, DLO co-founders Andres Bay and Sergio Kaplan as well as the company’s CEO, Sebastian Kanovich expect to acquire additional DLO shares via open market transactions.
Wall Street analysts are sidelined about DLO stock with a Hold consensus rating based on two Buys, two Holds, and one Sell.
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