MercadoLibre (NASDAQ:MELI) Hits New 1-Year Low – What’s Next?

Shares of MercadoLibre, Inc. (NASDAQ:MELI) hit a new 52-week low on Wednesday. The stock traded as low as $1,465.06 and last traded at $1,482.7180, with a volume of 72,279 shares traded. The stock had previously closed at $1,490.24.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on MELI shares. BTIG Research dropped their price target on MercadoLibre from $2,150.00 to $2,050.00 and set a “buy” rating on the stock in a research report on Thursday, November 5th. Citigroup upgraded MercadoLibre from a “neutral” rating to a “buy” rating and decreased their price objective for the company from $2,100.00 to $2,050.00 in a report on Tuesday, October 27th. Raymond James Financial restated a “strong-buy” rating on shares of MercadoLibre in a report on Thursday, November 5th. Susquehanna upped their price objective on shares of MercadoLibre to $2,400.00 and gave the stock a “positive” rating in a research note on Tuesday, October 6th. Finally, New Street Research initiated coverage on shares of MercadoLibre in a report on Wednesday, September 23rd. They set a “buy” rating and a $2,450.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, MercadoLibre presently has an average rating of “Moderate Buy” and an average target price of $2,180.00.

MercadoLibre Stock Up 0.5%

The company has a market cap of $75.93 billion, a P/E ratio of 40.18, a P/E/G ratio of 1.08 and a beta of 1.42. The company has a quick ratio of 1.10, a current ratio of 1.17 and a debt-to-equity ratio of 0.77. The business’s 50 day moving average is $1,790.41 and its 200 day moving average is $1,798.61.

MercadoLibre (NASDAQ:MELI) last posted its earnings results on Wednesday, November 4th. The company reported $8.83 earnings per share for the quarter, missing analysts’ consensus estimates of $9.27 by ($0.44). The company had revenue of $10.75 billion for the quarter, compared to analysts’ expectations of $10.69 billion. MercadoLibre had a return on equity of 25.15% and a net margin of 4.91%. The firm’s quarterly revenue was up 45.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $8.32 EPS. As a group, equities analysts anticipate that MercadoLibre, Inc. will post 37.88 earnings per share for the current fiscal year.

Institutional Investors Weigh In On MercadoLibre

A number of institutional investors have recently added to or reduced their stakes in the stock. Aberdeen Group plc boosted its holdings in shares of MercadoLibre by 6,304.8% in the 3rd quarter. Aberdeen Group plc now owns 2,473,606 shares of the company’s stock valued at $4,275,702,000 after buying an additional 2,434,985 shares in the last quarter. BlackRock Inc. purchased a new position in MercadoLibre in the second quarter worth $2,246,015,000. Janus Henderson Group PLC grew its holdings in MercadoLibre by 1.7% in the first quarter. Janus Henderson Group PLC now owns 614,238 shares of the company’s stock worth $1,062,019,000 after purchasing an additional 10,142 shares during the last quarter. Linonia Partnership LP grew its holdings in MercadoLibre by 325.1% in the second quarter. Linonia Partnership LP now owns 553,788 shares of the company’s stock worth $939,994,000 after purchasing an additional 423,527 shares during the last quarter. Finally, Jupiter Topco LLC purchased a new position in MercadoLibre in the second quarter worth $917,123,000. Institutional investors own 87.62% of the company’s stock.

About MercadoLibre

MercadoLibre, Inc. operates an online commerce and financial technology platform focused on Latin America. Founded in Argentina in 1999, the company connects buyers and sellers through its marketplace, where businesses and individuals can list and purchase a wide range of products. The company’s services also include Mercado Pago, which offers digital payment and financial services for transactions on and off its marketplace. MercadoLibre supports commerce with services such as Mercado Envíos, its shipping and logistics platform, and provides advertising tools for merchants and brands.