MercadoLibre, Inc. (NASDAQ:MELI) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts broadly favor MercadoLibre: Twelve of 18 covering firms rate the stock a “buy,” while six recommend holding it, producing a consensus “Moderate Buy” rating. The average 12-month price target is $2,283.12.
• MercadoLibre reported quarterly EPS of $9.19, exceeding the $8.65 consensus estimate, while revenue reached $10.17 billion and grew 49.8% year over year.
• The stock opened at $1,724.90 and was recently trading up 0.7%; institutional investors own 87.62% of outstanding shares.

Shares of MercadoLibre, Inc. (NASDAQ:MELI - Get Free Report) have been given an average recommendation of "Moderate Buy" by the eighteen ratings firms that are currently covering the company, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation and twelve have issued a buy recommendation on the company. The average 1-year price target among analysts that have covered the stock in the last year is $2,283.12.

Several research firms have recently issued reports on MELI. Citigroup boosted their price objective on shares of MercadoLibre from $1,950.00 to $2,000.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th. New Street Research began coverage on shares of MercadoLibre in a research note on Wednesday, September 23rd. They issued a "buy" rating and a $2,450.00 target price for the company. Zacks Research raised MercadoLibre from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Weiss Ratings restated a "hold (c)" rating on shares of MercadoLibre in a research note on Thursday, July 2nd. Finally, BTIG Research reaffirmed a "buy" rating and issued a $2,150.00 price target on shares of MercadoLibre in a report on Thursday, September 3rd.

MercadoLibre Trading Up 0.7%

Shares of MercadoLibre stock opened at $1,724.90 on Wednesday. MercadoLibre has a 1 year low of $1,495.00 and a 1 year high of $2,481.10. The company's fifty day simple moving average is $1,869.60 and its 200-day simple moving average is $1,769.58. The company has a market cap of $87.45 billion, a price-to-earnings ratio of 46.91, a PEG ratio of 1.17 and a beta of 1.31. The company has a current ratio of 1.12, a quick ratio of 1.10 and a debt-to-equity ratio of 0.53.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $9.19 EPS for the quarter, beating the consensus estimate of $8.65 by $0.54. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The firm had revenue of $10.17 billion during the quarter, compared to analysts' expectations of $9.79 billion. During the same period in the prior year, the company earned $10.31 EPS. The business's quarterly revenue was up 49.8% compared to the same quarter last year. As a group, sell-side analysts expect that MercadoLibre will post 39.11 EPS for the current year.

Institutional Trading of MercadoLibre

A number of institutional investors and hedge funds have recently modified their holdings of MELI. Purpose Unlimited Inc. acquired a new stake in MercadoLibre during the fourth quarter worth $28,000. Curio Wealth LLC acquired a new position in shares of MercadoLibre in the 4th quarter valued at $30,000. Wedbush Fund Advisers LLC bought a new position in shares of MercadoLibre during the 2nd quarter worth about $29,000. Palladiem LLC bought a new position in shares of MercadoLibre during the 4th quarter worth about $36,000. Finally, Twin Lakes Capital Management LLC acquired a new stake in shares of MercadoLibre during the 2nd quarter valued at about $31,000. 87.62% of the stock is currently owned by institutional investors.

About MercadoLibre

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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