MercadoLibre (NASDAQ:MELI) Shares Up 8.5% – Still a Buy?

by · The Markets Daily

MercadoLibre, Inc. (NASDAQ:MELI – Get Free Report)’s stock price was up 8.5% during trading on Monday. The company traded as high as $1,843.84 and last traded at $1,840.7010. Approximately 710,471 shares traded hands during mid-day trading, an increase of 31% from the average daily volume of 540,742 shares. The stock had previously closed at $1,696.56.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on MELI. JPMorgan Chase & Co. lifted their price objective on MercadoLibre from $1,900.00 to $2,150.00 and gave the stock a “neutral” rating in a report on Tuesday, August 11th. Zacks Research raised MercadoLibre from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of MercadoLibre in a research report on Tuesday, September 29th. New Street Research assumed coverage on MercadoLibre in a research note on Wednesday, September 23rd. They set a “buy” rating and a $2,450.00 price objective for the company. Finally, BTIG Research restated a “buy” rating and issued a $2,150.00 target price on shares of MercadoLibre in a report on Thursday, September 3rd. Twelve research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, MercadoLibre has an average rating of “Moderate Buy” and an average target price of $2,283.12.

Check Out Our Latest Research Report on MELI

MercadoLibre Price Performance

The company has a market cap of $94.17 billion, a PE ratio of 50.41, a PEG ratio of 1.19 and a beta of 1.31. The firm’s 50-day moving average is $1,863.81 and its 200-day moving average is $1,769.78. The company has a quick ratio of 1.10, a current ratio of 1.12 and a debt-to-equity ratio of 0.53.

MercadoLibre (NASDAQ:MELI – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $9.19 earnings per share for the quarter, beating 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 company 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 earnings per share. The firm’s revenue was up 49.8% on a year-over-year basis. On average, equities analysts anticipate that MercadoLibre, Inc. will post 38.29 EPS for the current year.

Hedge Funds Weigh In On MercadoLibre

Several hedge funds and other institutional investors have recently modified their holdings of MELI. Purpose Unlimited Inc. bought a new stake in shares of MercadoLibre during the 4th quarter valued at about $28,000. Wedbush Fund Advisers LLC purchased a new position in shares of MercadoLibre in the second quarter worth approximately $29,000. Palladiem LLC bought a new stake in MercadoLibre during the fourth quarter valued at approximately $36,000. Twin Lakes Capital Management LLC bought a new stake in MercadoLibre during the second quarter valued at approximately $31,000. Finally, Hanson & Doremus Investment Management purchased a new stake in MercadoLibre during the first quarter valued at approximately $35,000. 87.62% of the stock is owned by institutional investors.

About MercadoLibre

(Get Free Report)

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.

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