MercadoLibre, Inc. (MELI) Trading 11.9% Higher After Strong Earnings
MercadoLibre, Inc. (NASDAQ:MELI) shares traded up 11.9% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $273.78 and last traded at $267.35. 2,921,620 shares were traded during mid-day trading, an increase of 183% from the average session volume of 1,033,344 shares. The stock had previously closed at $239.02.
The company reported $0.63 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.56 by $0.07. MercadoLibre had a return on equity of 33.82% and a net margin of 10.91%. The business had revenue of $370.66 million during the quarter, compared to analysts’ expectations of $347.29 million. During the same period in the previous year, the business posted $0.88 earnings per share. The firm’s revenue for the quarter was up 60.6% compared to the same quarter last year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 16th. Investors of record on Sunday, December 31st will be issued a $0.15 dividend. The ex-dividend date of this dividend is Thursday, December 28th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.22%. MercadoLibre’s dividend payout ratio is 19.93%.
A number of research analysts recently issued reports on the company. BidaskClub cut MercadoLibre from a “buy” rating to a “hold” rating in a report on Wednesday, August 9th. Stifel Nicolaus reaffirmed a “hold” rating and issued a $275.00 price target (up from $260.00) on shares of MercadoLibre in a report on Wednesday, August 9th. J P Morgan Chase & Co reaffirmed a “neutral” rating and issued a $270.00 price target on shares of MercadoLibre in a report on Wednesday, August 9th. Credit Suisse Group boosted their price objective on MercadoLibre from $350.00 to $380.00 and gave the stock an “outperform” rating in a report on Friday. Finally, Zacks Investment Research cut MercadoLibre from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 9th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $271.21.
Institutional investors have recently bought and sold shares of the company. Crosslink Capital Inc. acquired a new position in shares of MercadoLibre during the 2nd quarter worth about $2,316,000. AXA grew its position in shares of MercadoLibre by 186.9% during the 2nd quarter. AXA now owns 77,470 shares of the company’s stock worth $19,436,000 after buying an additional 50,470 shares during the period. KBC Group NV grew its position in shares of MercadoLibre by 54.2% during the 2nd quarter. KBC Group NV now owns 5,082 shares of the company’s stock worth $1,275,000 after buying an additional 1,786 shares during the period. Barings LLC acquired a new position in shares of MercadoLibre during the 1st quarter worth about $218,000. Finally, Westpac Banking Corp grew its position in shares of MercadoLibre by 774.0% during the 2nd quarter. Westpac Banking Corp now owns 29,811 shares of the company’s stock worth $7,479,000 after buying an additional 26,400 shares during the period. Institutional investors own 83.92% of the company’s stock.
The company has a market cap of $10.42 billion, a PE ratio of 67.43, a PEG ratio of 3.66 and a beta of 2.04. The company has a quick ratio of 1.42, a current ratio of 1.42 and a debt-to-equity ratio of 0.67.
MercadoLibre, Inc is an e-commerce company. The Company enables commerce through its marketplace platform in Latin America, which is designed to provide users with a portfolio of services to facilitate commercial transactions. Its geographic segments are Brazil, Argentina, Mexico Venezuela and Other Countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America).
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