Prescott Group Capital Management L.L.C. Invests $269,000 in MercadoLibre, Inc. (NASDAQ:MELI)

Key Points

• Prescott Group Capital Management L.L.C. has acquired a new position in MercadoLibre, purchasing 138 shares valued at approximately $269,000.
• MercadoLibre reported strong quarterly earnings with an EPS of $9.74, surpassing the consensus estimate of $7.82 and showing a 37.0% year-over-year increase in revenue to $5.94 billion.
• Institutional investors hold 87.62% of MercadoLibre's stock, indicating significant institutional interest in the company.

Prescott Group Capital Management L.L.C. purchased a new position in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 138 shares of the company's stock, valued at approximately $269,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Key Financial Inc bought a new position in shares of MercadoLibre during the first quarter worth $25,000. GW&K Investment Management LLC bought a new position in shares of MercadoLibre during the first quarter worth $25,000. Park Square Financial Group LLC bought a new position in shares of MercadoLibre during the fourth quarter worth $26,000. Covestor Ltd acquired a new stake in shares of MercadoLibre during the fourth quarter worth $27,000. Finally, Close Asset Management Ltd raised its holdings in shares of MercadoLibre by 366.7% during the first quarter. Close Asset Management Ltd now owns 14 shares of the company's stock worth $27,000 after acquiring an additional 11 shares during the period. 87.62% of the stock is owned by institutional investors.

MercadoLibre Stock Performance

NASDAQ MELI traded up $21.15 during trading on Tuesday, reaching $2,375.26. The company's stock had a trading volume of 113,561 shares, compared to its average volume of 390,425. The company has a current ratio of 1.20, a quick ratio of 1.18 and a debt-to-equity ratio of 0.57. The firm has a market capitalization of $120.43 billion, a price-to-earnings ratio of 58.37, a price-to-earnings-growth ratio of 1.40 and a beta of 1.49. MercadoLibre, Inc. has a 12 month low of $1,579.78 and a 12 month high of $2,645.22. The firm has a 50 day moving average price of $2,471.41 and a 200 day moving average price of $2,212.78.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $9.74 earnings per share for the quarter, topping analysts' consensus estimates of $7.82 by $1.92. MercadoLibre had a net margin of 9.21% and a return on equity of 48.46%. The company had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.55 billion. During the same quarter in the prior year, the firm posted $6.78 EPS. The firm's quarterly revenue was up 37.0% on a year-over-year basis. As a group, equities analysts anticipate that MercadoLibre, Inc. will post 43.96 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages recently commented on MELI. The Goldman Sachs Group raised their price objective on shares of MercadoLibre from $2,640.00 to $3,000.00 and gave the stock a "buy" rating in a report on Wednesday, May 14th. Benchmark lowered shares of MercadoLibre from a "buy" rating to a "cautious" rating in a report on Thursday, May 1st. Susquehanna restated a "positive" rating and set a $2,975.00 price objective (up from $2,840.00) on shares of MercadoLibre in a report on Thursday, June 26th. Citigroup restated a "buy" rating on shares of MercadoLibre in a report on Friday, June 6th. Finally, Cantor Fitzgerald lowered their price target on shares of MercadoLibre from $2,900.00 to $2,700.00 and set an "overweight" rating on the stock in a research note on Wednesday, June 11th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $2,690.29.

MercadoLibre Company Profile

MercadoLibre, Inc operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps.