MercadoLibre (NASDAQ:MELI) Sets New 1-Year Low After Analyst Downgrade

MercadoLibre, Inc. (NASDAQ:MELI)’s stock price reached a new 52-week low during mid-day trading on Wednesday after UBS Group lowered their price target on the stock from $1,750.00 to $1,600.00. UBS Group currently has a neutral rating on the stock. MercadoLibre traded as low as $1,465.06 and last traded at $1,482.7180, with a volume of 72,279 shares changing hands. The stock had previously closed at $1,490.24.

A number of other research analysts have also weighed in on MELI. New Street Research began coverage on shares of MercadoLibre in a research report on Wednesday, September 23rd. They set a “buy” rating and a $2,450.00 target price for the company. Susquehanna raised their price target on MercadoLibre to $2,400.00 and gave the company a “positive” rating in a research report on Tuesday, October 6th. Cantor Fitzgerald dropped their price objective on MercadoLibre from $2,200.00 to $2,000.00 and set an “overweight” rating on the stock in a research note on Thursday, November 5th. JPMorgan Chase & Co. dropped their price objective on MercadoLibre from $2,150.00 to $1,850.00 and set a “neutral” rating on the stock in a research note on Monday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of MercadoLibre in a research report on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $2,170.62.

Latest MercadoLibre News

Investors following MELI have been watching these news items:

• Positive Sentiment: MercadoLibre’s latest quarterly revenue grew 45.1% year over year to $10.75 billion, slightly exceeding expectations of $10.69 billion. Article: MercadoLibre stock balances 45% Q3 growth against margin pressure
• Negative Sentiment: Profitability is the key concern: quarterly EPS of $8.83 missed the $9.27 consensus, while heavy investment spending and margin pressure have raised questions about how much of the strong sales growth will translate into earnings. Article: MercadoLibre stock faces a sharper test of profitable growth
• Negative Sentiment: Analyst actions add pressure. UBS lowered its price target from $1,750 to $1,600 and maintained a neutral rating; JPMorgan also cut its target, while a recent analysis points to further target reductions amid weak technical momentum. UBS rating information Article: MercadoLibre stock price target cut by JPMorgan Article: Analyst cuts meet a soft technical bid near $1,500

Institutional Investors Weigh In On MercadoLibre

A number of institutional investors have recently added to or reduced their stakes in MELI. Aberdeen Group plc grew its holdings in shares of MercadoLibre by 6,304.8% during the third quarter. Aberdeen Group plc now owns 2,473,606 shares of the company’s stock worth $4,275,702,000 after purchasing an additional 2,434,985 shares during the last quarter. BlackRock Inc. bought a new position in shares of MercadoLibre in the second quarter valued at about $2,246,015,000. Janus Henderson Group PLC raised its holdings in shares of MercadoLibre by 1.7% in the first quarter. Janus Henderson Group PLC now owns 614,238 shares of the company’s stock valued at $1,062,019,000 after buying an additional 10,142 shares during the last quarter. Linonia Partnership LP raised its holdings in shares of MercadoLibre by 325.1% in the second quarter. Linonia Partnership LP now owns 553,788 shares of the company’s stock valued at $939,994,000 after buying an additional 423,527 shares during the last quarter. Finally, Jupiter Topco LLC acquired a new position in MercadoLibre during the 2nd quarter worth about $917,123,000. 87.62% of the stock is owned by institutional investors and hedge funds.

MercadoLibre Trading Down 2.4%

The company’s 50-day moving average is $1,770.75 and its 200-day moving average is $1,791.80. The firm has a market cap of $74.79 billion, a price-to-earnings ratio of 39.57, a P/E/G ratio of 1.08 and a beta of 1.42. 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 (NASDAQ:MELI) last announced its earnings results on Wednesday, November 4th. The company reported $8.83 earnings per share 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 period in the prior year, the firm posted $8.32 earnings per share. The company’s revenue was up 45.1% on a year-over-year basis. On average, research analysts predict that MercadoLibre, Inc. will post 37.44 earnings per share for the current year.

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.