Mercadolibre (NASDAQ: MELI) recently received a number of ratings updates from brokerages and research firms:

  • 8/14/2018 – Mercadolibre was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “MercadoLibre reported second quarter results wherein its e-commerce business showed sluggishness in Brazil due to rise in the shipping costs. The company suffered from the price hike by its major postal partner and trucker’s strike during the quarter. Also, the company continues to hurt by mounting expenses. Further, growing investments in customer services and consumer acquisition, free shipping and branding remains a major concern. Although these investments will continue to drive traffic and conversions on MercadoLibre’s platform, but they pose a huge risk to margin expansion. Nevertheless, the company’s strong position across the geographies will continue to drive its top-line growth. Moreover, growing adoption of MercadoPago remains positive. However, rising competition from e-commerce giants remains a headwind for its market position. Notably, the stock has underperformed the industry it belongs to on a year-to-date basis.”
  • 8/9/2018 – Mercadolibre was upgraded by analysts at ValuEngine from a “buy” rating to a “strong-buy” rating.
  • 8/9/2018 – Mercadolibre had its price target raised by analysts at Barclays PLC from $365.00 to $375.00. They now have an “overweight” rating on the stock.
  • 8/9/2018 – Mercadolibre had its price target lowered by analysts at Credit Suisse Group AG from $425.00 to $420.00. They now have an “outperform” rating on the stock.
  • 8/9/2018 – Mercadolibre had its price target raised by analysts at Stifel Nicolaus from $360.00 to $380.00. They now have a “hold” rating on the stock.
  • 8/1/2018 – Mercadolibre was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating.
  • 7/31/2018 – Mercadolibre was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “MercadoLibre continues to hurt by mounting expenses, interest accrual on convertible bonds and increase in income tax. Further, growing investments in customer services and consumer acquisition, free shipping and branding remains a major concern. Although these investments will continue to drive traffic and conversions on MercadoLibre’s platform, but they pose a huge risk to margin expansion. Nevertheless, we note that the company commands a dominant position in the Latin American e-commerce market with strong Mercado Puntos and MercadoPago. However, rising competition from e-commerce giants remains a headwind for its market position. Also, estimates have been going down ahead of the company’s Q2 earnings release. The company has a negative record of earnings surprises in recent quarters. Notably, the stock has underperformed the industry it belongs to over a year.”
  • 7/31/2018 – Mercadolibre had its price target raised by analysts at Piper Jaffray Companies to $376.00. They now have an “overweight” rating on the stock.
  • 7/25/2018 – Mercadolibre was given a new $400.00 price target on by analysts at KeyCorp. They now have a “buy” rating on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 7/20/2018 – Mercadolibre was upgraded by analysts at BidaskClub from a “hold” rating to a “buy” rating.
  • 7/17/2018 – Mercadolibre had its price target raised by analysts at Barclays PLC from $350.00 to $365.00. They now have an “overweight” rating on the stock.
  • 7/16/2018 – Mercadolibre had its price target raised by analysts at Credit Suisse Group AG from $380.00 to $425.00. They now have an “outperform” rating on the stock.
  • 7/16/2018 – Mercadolibre was upgraded by analysts at Zacks Investment Research from a “strong sell” rating to a “hold” rating. According to Zacks, “MercadoLibre’s growing number of confirmed registered users continues to drive the top-line growth. Moreover, the company commands a dominant position in the Latin American e-commerce market with strong Mercado Puntos and MercadoPago. Further, the company remains optimistic on its continued investments in customer services and consumer acquisition, free shipping and branding.  These will continue to drive traffic and conversions on MercadoLibre’s platform.  However, rising competition from e-commerce giants remains a headwind for its market position. Further, mounting expenses, interest accrual on convertible bonds and increase in income tax poses serious threat to its profitability. Notably, the stock has underperformed the industry it belongs to over a year.”
  • 7/10/2018 – Mercadolibre was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.
  • 6/25/2018 – Mercadolibre was upgraded by analysts at KeyCorp from a “sector weight” rating to an “overweight” rating. They now have a $350.00 price target on the stock.

MELI opened at $324.20 on Monday. Mercadolibre Inc has a fifty-two week low of $217.06 and a fifty-two week high of $417.91. The company has a debt-to-equity ratio of 2.15, a current ratio of 1.15 and a quick ratio of 1.15. The firm has a market cap of $16.44 billion, a PE ratio of 128.14 and a beta of 2.04.

Mercadolibre (NASDAQ:MELI) last posted its earnings results on Wednesday, August 8th. The company reported ($0.25) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.21) by ($0.04). Mercadolibre had a positive return on equity of 4.32% and a negative net margin of 4.39%. The firm had revenue of $335.40 million for the quarter, compared to analyst estimates of $333.98 million. During the same period in the prior year, the business posted $0.61 EPS. The firm’s quarterly revenue was up 18.1% compared to the same quarter last year. sell-side analysts predict that Mercadolibre Inc will post -0.11 EPS for the current year.

In other news, Director Meyer Malka bought 16,518 shares of the company’s stock in a transaction dated Thursday, June 14th. The stock was bought at an average price of $301.39 per share, with a total value of $4,978,360.02. Following the completion of the acquisition, the director now owns 1,708 shares of the company’s stock, valued at $514,774.12. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders have bought 34,726 shares of company stock valued at $10,451,306 in the last three months. Insiders own 0.32% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of MELI. Fortis Advisors LLC bought a new position in shares of Mercadolibre in the first quarter worth $112,000. HMS Capital Management LLC bought a new position in shares of Mercadolibre in the second quarter worth $211,000. WESPAC Advisors LLC bought a new position in shares of Mercadolibre in the first quarter worth $215,000. Paloma Partners Management Co bought a new position in shares of Mercadolibre in the second quarter worth $239,000. Finally, Natixis bought a new position in shares of Mercadolibre in the second quarter worth $253,000. 87.30% of the stock is owned by institutional investors.

MercadoLibre, Inc hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. The company's Marketplace platform enables commerce through online classifieds for motor vehicles, vessels, aircraft, services, and real estate; and Internet users to browse through various products that are listed on its Website and to register with MercadoLibre to list and purchase items and services.

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