MercadoLibre, Inc. $MELI Stock: Pictet Asset Management Holding SA Trims Position

Pictet Asset Management Holding SA reduced its position in shares of MercadoLibre, Inc. (NASDAQ:MELI) by 6.7% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 24,393 shares of the company’s stock after selling 1,740 shares during the quarter. Pictet Asset Management Holding SA’s holdings in MercadoLibre were worth $42,163,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also bought and sold shares of MELI. Wedbush Fund Advisers LLC purchased a new position in shares of MercadoLibre during the second quarter valued at $29,000. Twin Lakes Capital Management LLC purchased a new stake in MercadoLibre in the second quarter worth about $31,000. NBT Bank N.A. bought a new position in MercadoLibre during the 3rd quarter worth about $35,000. Markowski Investments bought a new position in MercadoLibre during the 2nd quarter worth about $36,000. Finally, Byrne Asset Management LLC bought a new position in MercadoLibre during the 3rd quarter worth about $40,000. 87.62% of the stock is owned by institutional investors.

MercadoLibre Stock Down 2.8%

NASDAQ:MELI opened at $1,490.24 on Wednesday. The company’s 50-day simple moving average is $1,790.41 and its 200-day simple moving average is $1,798.61. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.10 and a current ratio of 1.17. MercadoLibre, Inc. has a fifty-two week low of $1,469.01 and a fifty-two week high of $2,342.00. The stock has a market capitalization of $75.56 billion, a P/E ratio of 41.11, a P/E/G ratio of 1.08 and a beta of 1.42.

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

Analyst Ratings Changes

A number of research analysts have commented on MELI shares. JPMorgan Chase & Co. cut their target price on shares of MercadoLibre from $2,150.00 to $1,850.00 and set a “neutral” rating on the stock in a research report on Monday. Weiss Ratings reiterated a “hold (c)” rating on shares of MercadoLibre in a research note on Tuesday, September 29th. Citigroup upgraded shares of MercadoLibre from a “neutral” rating to a “buy” rating and dropped their price objective for the company from $2,100.00 to $2,050.00 in a research note on Tuesday, October 27th. BTIG Research cut their price objective on shares of MercadoLibre from $2,150.00 to $2,050.00 and set a “buy” rating on the stock in a report on Thursday, November 5th. Finally, New Street Research assumed coverage on shares of MercadoLibre in a research note on Wednesday, September 23rd. They issued a “buy” rating and a $2,450.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, MercadoLibre has an average rating of “Moderate Buy” and a consensus target price of $2,180.00.

MercadoLibre News Summary

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: MercadoLibre’s Q3 revenue rose 45% year over year to $10.75 billion, and management commentary points to customers shopping more often and placing more money with Mercado Pago. The company has also sustained a long run of strong growth. MercadoLibre Stock Looks Attractive Even as Brazil Fears Mount MercadoLibre Is “the Only Company Ever” to Grow 30% for 30 Straight Quarters
• Positive Sentiment: Expansion efforts may support future growth: fulfillment capacity increased ahead of peak season, while orders through Brazil’s affiliate marketing channel climbed 240% year over year. One article also argues that the share-price pullback has made the growth story more appealing to investors. MercadoLibre: 3 Key Takeaways for Long-Term Investors Down 24% This Year, Is MercadoLibre an Obvious Growth Stock?
• Neutral Sentiment: JPMorgan lowered its price target from $2,150 to $1,850 and kept a neutral rating, signaling more cautious expectations despite potential upside from the level cited in the report. MercadoLibre Stock Price Targets
• Neutral Sentiment: A short-interest item describes a large increase but reports total short interest of zero shares as of November 10, an apparent inconsistency that makes the data difficult to interpret.
• Negative Sentiment: Profitability is the key concern: shipping costs and expansion spending are squeezing margins even as revenue grows. Q3 EPS of $8.83 also missed the $9.27 consensus estimate, and reports say shares fell 11.9% after earnings. The company’s premium valuation may amplify investor caution. MercadoLibre Declines 11.9% Since Q3 Earnings MercadoLibre’s Growth Strategy Puts Profit Margins to the Test

About MercadoLibre

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.