MercadoLibre, Inc. (NASDAQ:MELI) Receives Average Rating of “Moderate Buy” from Brokerages

MercadoLibre, Inc. (NASDAQ:MELI) has been assigned a consensus rating of “Moderate Buy” from the eighteen research firms that are presently covering the company, Marketbeat Ratings reports. Six investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $2,251.88.

A number of analysts have recently issued reports on MELI shares. Cantor Fitzgerald lifted their price objective on shares of MercadoLibre from $2,150.00 to $2,300.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. New Street Research began coverage on shares of MercadoLibre in a report on Wednesday, September 23rd. They set a “buy” rating and a $2,450.00 price target for the company. JPMorgan Chase & Co. lifted their price target on shares of MercadoLibre from $1,900.00 to $2,150.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 11th. Citigroup boosted their price objective on shares of MercadoLibre from $1,950.00 to $2,000.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Finally, Zacks Research upgraded MercadoLibre from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th.

MercadoLibre Price Performance

MELI stock opened at $1,857.99 on Wednesday. The firm has a market cap of $94.20 billion, a P/E ratio of 50.53, a price-to-earnings-growth ratio of 1.30 and a beta of 1.31. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.12. MercadoLibre has a 1 year low of $1,495.00 and a 1 year high of $2,428.00. The stock has a 50-day simple moving average of $1,864.54 and a 200-day simple moving average of $1,771.89.

MercadoLibre (NASDAQ:MELI) last released its quarterly earnings results on Thursday, August 6th. The company reported $9.19 EPS for the quarter, topping the consensus estimate of $8.65 by $0.54. MercadoLibre had a return on equity of 26.54% and a net margin of 5.30%.The firm had revenue of $10.17 billion for the quarter, compared to analyst estimates of $9.79 billion. During the same period in the previous year, the company posted $10.31 EPS. MercadoLibre’s revenue for the quarter was up 49.8% on a year-over-year basis. On average, equities analysts predict that MercadoLibre will post 38.29 earnings per share for the current fiscal year.

Key MercadoLibre News

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Bank of America maintains a Buy rating. Continued support from a major brokerage suggests the recent weakness may be overdone and reinforces the long-term growth thesis. Bank of America Securities Sticks to Their Buy Rating for MercadoLibre
• Positive Sentiment: Core marketplace momentum remains robust. GMV reportedly surged 44% in the second quarter, supported by stronger buyer engagement, seller growth and increasing cross-border commerce across Latin America. Revenue is also growing at its fastest pace in four years, providing potential upside if profitability improves. MercadoLibre’s GMV Growth Has More Room to Run Across Markets
• Positive Sentiment: Some investors see substantial recovery potential. Coverage argues that heavy investment may already be beginning to generate returns, while Michael Burry’s bullish view and optimistic Wall Street commentary could support sentiment. Is Michael Burry Right About MercadoLibre?
• Neutral Sentiment: Analyst sentiment is generally constructive, but the articles do not identify a major new catalyst beyond existing ratings and growth expectations. Is MercadoLibre a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: Profitability concerns are driving the recent weakness. Despite rapid revenue growth, profits are shrinking and earnings estimates are drifting lower. Investors are concerned that aggressive spending is increasing near-term pressure on margins and earnings. MercadoLibre Fell 15% Over 12 Months

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of MELI. Capital Research Global Investors boosted its stake in shares of MercadoLibre by 22.5% during the 4th quarter. Capital Research Global Investors now owns 2,225,031 shares of the company’s stock valued at $4,481,812,000 after buying an additional 408,939 shares during the last quarter. Capital International Investors increased its stake in shares of MercadoLibre by 7.3% in the fourth quarter. Capital International Investors now owns 1,725,125 shares of the company’s stock worth $3,474,880,000 after buying an additional 118,018 shares during the last quarter. BlackRock Inc. bought a new stake in shares of MercadoLibre in the second quarter worth $2,246,015,000. Janus Henderson Group PLC raised its holdings in MercadoLibre by 26.4% in the fourth quarter. Janus Henderson Group PLC now owns 604,096 shares of the company’s stock valued at $1,216,807,000 after acquiring an additional 126,294 shares in the last quarter. Finally, Linonia Partnership LP raised its holdings in MercadoLibre by 325.1% in the second quarter. Linonia Partnership LP now owns 553,788 shares of the company’s stock valued at $939,994,000 after acquiring an additional 423,527 shares in the last quarter. Hedge funds and other institutional investors own 87.62% of the company’s stock.

About MercadoLibre

MercadoLibre, Inc (NASDAQ:MELI) operates a technology platform serving commerce and financial-services customers across Latin America. Its online marketplace connects buyers and sellers, offering products across categories including electronics, apparel, home goods, automotive products and consumer packaged goods.

The company also provides a range of supporting services, including Mercado Pago, a digital payments platform that enables online and in-person transactions, money transfers and other financial services.