Mercadolibre (MELI) Upgraded by Zacks Investment Research to Hold
Mercadolibre (NASDAQ:MELI) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “MercadoLibre is currently grappling with margin compression due to increased investments toward free shipping in Brazil, Mexico, Chile and Colombia. This makes us increasingly cautious about the company's future profitability. Increased investments will continue to be a major headwind in the fourth quarter. However, top-line growth continuous, driven by solid momentum across all the key performance metrics. Mercadolibre continues to prudently invest in free shipping, loyalty, product, technology and customer acquisition initiatives, which, in turn, boosts traffic and conversions in its marketplaces. The company’s mobile initiatives are also delivering results. In the past 12 months, the company has outperformed the industry it belongs to.”
Several other equities research analysts have also commented on the stock. Credit Suisse Group reaffirmed an “outperform” rating and set a $385.00 price target (up previously from $380.00) on shares of Mercadolibre in a research report on Monday. BidaskClub raised shares of Mercadolibre from a “buy” rating to a “strong-buy” rating in a report on Friday. Deutsche Bank set a $335.00 target price on shares of Mercadolibre and gave the stock a “hold” rating in a report on Thursday, January 4th. Citigroup lowered shares of Mercadolibre from a “neutral” rating to a “sell” rating and set a $230.00 target price for the company. in a report on Wednesday, December 20th. Finally, Piper Jaffray Companies increased their target price on shares of Mercadolibre from $268.00 to $330.00 and gave the stock an “overweight” rating in a report on Wednesday, December 13th. One research analyst has rated the stock with a sell rating, six have given a hold rating, seven have given a buy rating and two have given a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $276.98.
Mercadolibre (NASDAQ MELI) traded up $9.92 during midday trading on Tuesday, hitting $340.79. 491,200 shares of the stock traded hands, compared to its average volume of 456,100. Mercadolibre has a 12-month low of $172.61 and a 12-month high of $341.47. The stock has a market cap of $14,940.00, a price-to-earnings ratio of 113.22, a P/E/G ratio of 4.61 and a beta of 2.05. The company has a quick ratio of 1.43, a current ratio of 1.44 and a debt-to-equity ratio of 0.76.
Mercadolibre (NASDAQ:MELI) last released its quarterly earnings results on Thursday, November 2nd. The company reported $0.63 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.56 by $0.07. Mercadolibre had a net margin of 10.91% and a return on equity of 34.78%. The firm had revenue of $370.66 million during the quarter, compared to analyst estimates of $347.29 million. During the same quarter in the prior year, the firm earned $0.88 EPS. The business’s revenue for the quarter was up 60.6% compared to the same quarter last year. analysts forecast that Mercadolibre will post 2.42 EPS for the current fiscal year.
In other Mercadolibre news, Director Alejandro Nicolas Aguzin purchased 10,000 shares of the company’s stock in a transaction on Monday, November 27th. The stock was acquired at an average cost of $274.47 per share, for a total transaction of $2,744,700.00. Following the purchase, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $2,744,700. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.36% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the business. Carmignac Gestion boosted its position in shares of Mercadolibre by 6.3% during the 3rd quarter. Carmignac Gestion now owns 2,426,208 shares of the company’s stock valued at $628,218,000 after acquiring an additional 144,451 shares during the last quarter. Orbis Allan Gray Ltd boosted its position in shares of Mercadolibre by 10.2% during the 2nd quarter. Orbis Allan Gray Ltd now owns 1,591,614 shares of the company’s stock valued at $399,304,000 after acquiring an additional 146,891 shares during the last quarter. Ameriprise Financial Inc. boosted its position in shares of Mercadolibre by 14.0% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,029,446 shares of the company’s stock valued at $266,559,000 after acquiring an additional 126,452 shares during the last quarter. Koch Industries Inc. boosted its position in shares of Mercadolibre by 85,458.8% during the 2nd quarter. Koch Industries Inc. now owns 965,959 shares of the company’s stock valued at $962,000 after acquiring an additional 964,830 shares during the last quarter. Finally, Capital International Investors boosted its position in shares of Mercadolibre by 0.5% during the 3rd quarter. Capital International Investors now owns 722,239 shares of the company’s stock valued at $187,009,000 after acquiring an additional 3,441 shares during the last quarter. Institutional investors and hedge funds own 89.44% of the company’s stock.
Mercadolibre Company Profile
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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