MercadoLibre SA (MELI) Upgraded to Strong-Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of MercadoLibre SA (NASDAQ:MELI) from a hold rating to a strong-buy rating in a research report sent to investors on Wednesday. The firm currently has $212.00 target price on the stock.
According to Zacks, “MercadoLibre is the largest online trading platform in Latin America. We are market leaders in e-commerce in each of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela, based on unique visitors and page views. Additionally, we have recently launched online trading platforms in Costa Rica, the Dominican Republic and Panama. With a market of over Five fifty million people and a region with one of the world’s fastest-growing Internet penetration rates, we provide buyers and sellers a robust online trading environment that fosters the development of a large and growing e-commerce community. We offer a technological and commercial solution that addresses the distinctive cultural and geographic challenges of operating an online trading platform in Latin America. “
Several other research analysts have also weighed in on the stock. Piper Jaffray Cos. restated a buy rating and set a $160.00 price objective on shares of MercadoLibre SA in a research note on Friday, July 1st. Goldman Sachs Group Inc. started coverage on shares of MercadoLibre SA in a research report on Tuesday, August 9th. They set a neutral rating and a $170.00 target price on the stock. Finally, JPMorgan Chase & Co. upgraded shares of MercadoLibre SA from a neutral rating to an overweight rating and increased their target price for the stock from $173.68 to $200.00 in a research report on Friday, September 2nd. Four equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of Buy and an average price target of $162.88.
MercadoLibre SA (NASDAQ:MELI) traded up 0.25% during midday trading on Wednesday, reaching $186.95. The company’s stock had a trading volume of 105,191 shares. MercadoLibre SA has a 52-week low of $84.19 and a 52-week high of $191.76. The stock has a market capitalization of $8.26 billion, a price-to-earnings ratio of 63.16 and a beta of 2.08. The firm has a 50-day moving average price of $177.78 and a 200 day moving average price of $146.79.
MercadoLibre SA (NASDAQ:MELI) last posted its quarterly earnings data on Thursday, August 4th. The company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.59 by $0.23. The company earned $199.60 million during the quarter, compared to the consensus estimate of $180.94 million. MercadoLibre SA had a net margin of 18.50% and a return on equity of 38.04%. The company’s revenue was up 29.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.44 earnings per share. Equities research analysts predict that MercadoLibre SA will post $2.73 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Friday, September 30th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.32%. The ex-dividend date is Wednesday, September 28th. MercadoLibre SA’s payout ratio is 20.34%.
In related news, Director A Michael Spence sold 3,451 shares of the stock in a transaction dated Tuesday, August 9th. The stock was sold at an average price of $168.97, for a total transaction of $583,115.47. Following the transaction, the director now owns 6,903 shares of the company’s stock, valued at approximately $1,166,399.91. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Pedro Arnt sold 3,000 shares of the stock in a transaction dated Tuesday, August 9th. The stock was sold at an average price of $168.27, for a total value of $504,810.00. Following the transaction, the vice president now directly owns 19,129 shares in the company, valued at approximately $3,218,836.83. The disclosure for this sale can be found here. Corporate insiders own 0.36% of the company’s stock.
A number of institutional investors have recently bought and sold shares of MELI. Orbis Allan Gray Ltd purchased a new position in MercadoLibre SA during the first quarter valued at about $70,045,000. Jericho Capital Asset Management L.P. purchased a new position in MercadoLibre SA during the first quarter valued at about $52,059,000. BlackRock Inc. raised its position in MercadoLibre SA by 1,649.1% in the first quarter. BlackRock Inc. now owns 8,116 shares of the company’s stock valued at $956,000 after buying an additional 7,652 shares during the last quarter. State Street Corp raised its position in MercadoLibre SA by 1.8% in the first quarter. State Street Corp now owns 29,227 shares of the company’s stock valued at $3,445,000 after buying an additional 528 shares during the last quarter. Finally, Motley Fool Wealth Management LLC raised its position in MercadoLibre SA by 2.7% in the first quarter. Motley Fool Wealth Management LLC now owns 43,784 shares of the company’s stock valued at $5,160,000 after buying an additional 1,169 shares during the last quarter. 74.01% of the stock is currently owned by hedge funds and other institutional investors.
About MercadoLibre SA
MercadoLibre, Inc (MercadoLibre) hosts an online commerce platform in Latin America, which is focused on enabling e-commerce and its related services. The Company provides a portfolio of services facilitating e-commerce transactions. Its geographic segments are Brazil, Argentina, Mexico, Venezuela and other countries (including Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America.
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