MercadoLibre (NASDAQ:MELI) Hits New 1-Year Low – What’s Next?

Shares of MercadoLibre, Inc. (NASDAQ:MELI) reached a new 52-week low during trading on Wednesday. The company traded as low as $1,465.06 and last traded at $1,482.7180, with a volume of 72,279 shares. The stock had previously closed at $1,490.24.

Wall Street Analyst Weigh In

MELI has been the topic of several analyst reports. New Street Research initiated coverage on shares of MercadoLibre in a report on Wednesday, September 23rd. They set a “buy” rating and a $2,450.00 price target on the stock. JPMorgan Chase & Co. decreased their price objective on shares of MercadoLibre from $2,150.00 to $1,850.00 and set a “neutral” rating for the company in a research note on Monday. Scotiabank decreased their price objective on shares of MercadoLibre from $2,800.00 to $2,300.00 and set a “sector outperform” rating for the company in a research note on Thursday, November 5th. Susquehanna boosted their target price on MercadoLibre to $2,400.00 and gave the company a “positive” rating in a research report on Tuesday, October 6th. Finally, BTIG Research cut their target price on MercadoLibre from $2,150.00 to $2,050.00 and set a “buy” rating on the stock in a research note on Thursday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, MercadoLibre has an average rating of “Moderate Buy” and an average target price of $2,180.00.

MercadoLibre Price Performance

The stock has a market capitalization of $75.93 billion, a PE ratio of 40.18, a price-to-earnings-growth ratio of 1.08 and a beta of 1.42. The company has a quick ratio of 1.10, a current ratio of 1.17 and a debt-to-equity ratio of 0.77. The stock’s 50 day moving average price is $1,790.41 and its 200-day moving average price is $1,798.61.

MercadoLibre (NASDAQ:MELI) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $8.83 EPS for the quarter, missing analysts’ consensus estimates of $9.27 by ($0.44). MercadoLibre had a return on equity of 25.15% and a net margin of 4.91%. The company had revenue of $10.75 billion during the quarter, compared to the consensus estimate of $10.69 billion. During the same quarter in the previous year, the company posted $8.32 earnings per share. The company’s revenue for the quarter was up 45.1% on a year-over-year basis. As a group, equities analysts forecast that MercadoLibre, Inc. will post 37.88 EPS for the current year.

Hedge Funds Weigh In On MercadoLibre

A number of hedge funds have recently added to or reduced their stakes in MELI. Private Wealth Asset Management LLC increased its position in shares of MercadoLibre by 72.0% during the third quarter. Private Wealth Asset Management LLC now owns 172 shares of the company’s stock worth $297,000 after acquiring an additional 72 shares during the period. Private Advisor Group LLC boosted its holdings in shares of MercadoLibre by 23.5% in the third quarter. Private Advisor Group LLC now owns 3,451 shares of the company’s stock valued at $5,965,000 after purchasing an additional 656 shares during the period. Ieq Capital LLC boosted its holdings in shares of MercadoLibre by 104.1% in the third quarter. Ieq Capital LLC now owns 2,833 shares of the company’s stock valued at $4,896,000 after purchasing an additional 1,445 shares during the period. Focus Advisor Solutions LLC purchased a new stake in shares of MercadoLibre in the third quarter valued at approximately $807,000. Finally, Proem Advisors LLC grew its stake in MercadoLibre by 30.9% in the third quarter. Proem Advisors LLC now owns 7,200 shares of the company’s stock worth $12,445,000 after purchasing an additional 1,700 shares in the last quarter. 87.62% of the stock is currently owned by institutional investors.

MercadoLibre Company Profile

MercadoLibre, Inc. operates an online commerce and financial technology platform focused on Latin America. Founded in Argentina in 1999, the company connects buyers and sellers through its marketplace, where businesses and individuals can list and purchase a wide range of products. The company’s services also include Mercado Pago, which offers digital payment and financial services for transactions on and off its marketplace. MercadoLibre supports commerce with services such as Mercado Envíos, its shipping and logistics platform, and provides advertising tools for merchants and brands.