MercadoLibre (NASDAQ:MELI) Trading Up 9.7% – Should You Buy?

MercadoLibre, Inc. (NASDAQ:MELI)’s share price rose 9.7% during mid-day trading on Monday . The company traded as high as $2,168.14 and last traded at $2,165.4180. Approximately 377,128 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 391,419 shares. The stock had previously closed at $1,973.70.

Analyst Ratings Changes

MELI has been the topic of a number of research reports. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of MercadoLibre in a research report on Friday, October 31st. Benchmark decreased their price target on shares of MercadoLibre from $2,875.00 to $2,780.00 and set a “buy” rating for the company in a research note on Thursday, October 30th. BTIG Research restated a “buy” rating and set a $2,750.00 price objective on shares of MercadoLibre in a report on Thursday, December 4th. Morgan Stanley lifted their price objective on shares of MercadoLibre from $2,850.00 to $2,950.00 and gave the company an “overweight” rating in a report on Monday, November 3rd. Finally, Wedbush lowered their target price on shares of MercadoLibre from $2,800.00 to $2,700.00 and set an “outperform” rating on the stock in a report on Friday, December 19th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, MercadoLibre has an average rating of “Moderate Buy” and a consensus price target of $2,842.94.

MercadoLibre Trading Up 8.9%

The stock’s 50 day simple moving average is $2,076.67 and its 200 day simple moving average is $2,261.44. The firm has a market cap of $108.94 billion, a PE ratio of 52.43, a PEG ratio of 0.98 and a beta of 1.42. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.15 and a current ratio of 1.17.

MercadoLibre (NASDAQ:MELI) last announced its quarterly earnings results on Wednesday, October 29th. The company reported $8.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $9.88 by ($1.56). MercadoLibre had a return on equity of 39.03% and a net margin of 7.93%.The firm had revenue of $7.41 billion during the quarter, compared to the consensus estimate of $7.19 billion. During the same period last year, the business earned $7.83 EPS. MercadoLibre’s revenue was up 39.5% on a year-over-year basis. On average, sell-side analysts forecast that MercadoLibre, Inc. will post 43.96 earnings per share for the current fiscal year.

Insider Activity at MercadoLibre

In other news, Director Henrique Vasoncelos Dubugras sold 845 shares of the firm’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $2,028.14, for a total transaction of $1,713,778.30. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Emiliano Calemzuk sold 45 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $2,027.37, for a total transaction of $91,231.65. Following the completion of the transaction, the director directly owned 257 shares of the company’s stock, valued at $521,034.09. This trade represents a 14.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,136 shares of company stock valued at $2,308,788. Corporate insiders own 0.25% of the company’s stock.

Institutional Investors Weigh In On MercadoLibre

Hedge funds have recently modified their holdings of the company. Jackson Wealth Management LLC purchased a new stake in shares of MercadoLibre during the 2nd quarter worth about $499,000. Highview Capital Management LLC DE purchased a new position in MercadoLibre in the second quarter valued at approximately $559,000. Ninety One North America Inc. lifted its position in MercadoLibre by 21.5% during the second quarter. Ninety One North America Inc. now owns 6,094 shares of the company’s stock valued at $15,927,000 after buying an additional 1,080 shares in the last quarter. Resona Asset Management Co. Ltd. grew its stake in MercadoLibre by 4.0% during the second quarter. Resona Asset Management Co. Ltd. now owns 15,308 shares of the company’s stock worth $39,900,000 after buying an additional 585 shares during the period. Finally, Jennison Associates LLC increased its position in shares of MercadoLibre by 7.0% in the second quarter. Jennison Associates LLC now owns 1,235,240 shares of the company’s stock worth $3,228,460,000 after acquiring an additional 81,124 shares in the last quarter. 87.62% of the stock is owned by hedge funds and other institutional investors.

About MercadoLibre

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.