MercadoLibre (NASDAQ:MELI) Sets New 52-Week Low Following Analyst Downgrade

Shares of MercadoLibre, Inc. (NASDAQ:MELI) hit a new 52-week low during trading on Thursday after JPMorgan Chase & Co. downgraded the stock from an overweight rating to a neutral rating. JPMorgan Chase & Co. now has a $2,100.00 price target on the stock, down from their previous price target of $2,650.00. MercadoLibre traded as low as $1,644.43 and last traded at $1,641.1030, with a volume of 579089 shares changing hands. The stock had previously closed at $1,766.10.

Other equities research analysts have also issued reports about the stock. Morgan Stanley reduced their price objective on shares of MercadoLibre from $2,800.00 to $2,600.00 and set an “overweight” rating on the stock in a research note on Monday. BTIG Research lowered their target price on shares of MercadoLibre from $2,750.00 to $2,650.00 and set a “buy” rating for the company in a research note on Wednesday, February 25th. Zacks Research upgraded shares of MercadoLibre from a “strong sell” rating to a “hold” rating in a report on Friday, February 6th. Cantor Fitzgerald cut their price target on shares of MercadoLibre from $2,750.00 to $2,400.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 25th. Finally, Dbs Bank upgraded MercadoLibre from a “hold” rating to a “moderate buy” rating in a report on Tuesday, December 2nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $2,725.33.

Insider Activity

In related news, Director Henrique Vasoncelos Dubugras sold 845 shares of the stock in a transaction on Friday, December 12th. The shares were sold at an average price of $2,028.14, for a total transaction of $1,713,778.30. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 0.25% of the stock is owned by insiders.

Institutional Trading of MercadoLibre

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Darwin Wealth Management LLC acquired a new stake in MercadoLibre in the second quarter valued at approximately $29,000. Laurel Wealth Advisors LLC acquired a new position in shares of MercadoLibre during the fourth quarter worth approximately $26,000. Transamerica Financial Advisors LLC acquired a new position in shares of MercadoLibre during the fourth quarter worth approximately $26,000. Steigerwald Gordon & Koch Inc. bought a new position in shares of MercadoLibre in the 3rd quarter worth $35,000. Finally, Curio Wealth LLC bought a new position in shares of MercadoLibre in the 4th quarter worth $30,000. 87.62% of the stock is owned by institutional investors.

MercadoLibre Trading Down 7.1%

The firm has a market cap of $83.14 billion, a price-to-earnings ratio of 41.58, a P/E/G ratio of 0.93 and a beta of 1.48. The firm’s 50-day moving average is $2,008.97 and its 200-day moving average is $2,127.73. The company has a current ratio of 1.17, a quick ratio of 1.15 and a debt-to-equity ratio of 0.68.

MercadoLibre (NASDAQ:MELI) last released its quarterly earnings data on Tuesday, February 24th. The company reported $11.03 earnings per share for the quarter, missing the consensus estimate of $11.66 by ($0.63). MercadoLibre had a return on equity of 33.73% and a net margin of 6.91%.The business had revenue of $8.76 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the previous year, the company posted $12.61 EPS. The business’s quarterly revenue was up 44.6% on a year-over-year basis. As a group, sell-side analysts anticipate that MercadoLibre, Inc. will post 43.96 EPS for the current fiscal year.

MercadoLibre Company Profile

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.