3G Capital Partners LP Raises Holdings in MercadoLibre, Inc. $MELI

Key Points

• 3G Capital Partners LP increased its MercadoLibre stake by 42.9% in the fourth quarter, buying 7,500 more shares and bringing its total to 25,000 shares worth about $50.4 million.
• Institutional ownership remains very high, with several major investors also adding to their MELI positions and institutions now holding 87.62% of the stock.
• MercadoLibre shares were down 2.5% and the company recently reported mixed quarterly results, missing EPS estimates but posting revenue that topped expectations and grew 49% year over year.

3G Capital Partners LP lifted its stake in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 42.9% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 25,000 shares of the company's stock after acquiring an additional 7,500 shares during the period. MercadoLibre accounts for about 11.9% of 3G Capital Partners LP's investment portfolio, making the stock its 4th largest position. 3G Capital Partners LP's holdings in MercadoLibre were worth $50,356,000 as of its most recent filing with the SEC.

A number of other institutional investors have also made changes to their positions in MELI. Baillie Gifford & Co. grew its holdings in MercadoLibre by 4.9% in the 4th quarter. Baillie Gifford & Co. now owns 3,481,563 shares of the company's stock valued at $7,012,773,000 after buying an additional 164,120 shares during the last quarter. Capital Research Global Investors boosted its stake in MercadoLibre by 22.5% in the 4th quarter. Capital Research Global Investors now owns 2,225,031 shares of the company's stock valued at $4,481,812,000 after buying an additional 408,939 shares in the last quarter. Capital World Investors boosted its stake in MercadoLibre by 1.3% in the 3rd quarter. Capital World Investors now owns 1,740,129 shares of the company's stock valued at $4,067,194,000 after buying an additional 22,659 shares in the last quarter. Capital International Investors raised its position in MercadoLibre by 7.3% in the 4th quarter. Capital International Investors now owns 1,725,125 shares of the company's stock valued at $3,474,880,000 after purchasing an additional 118,018 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its position in MercadoLibre by 9.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,583,071 shares of the company's stock valued at $3,188,718,000 after purchasing an additional 137,100 shares during the last quarter. 87.62% of the stock is owned by institutional investors.

MercadoLibre Trading Down 2.5%

MELI stock opened at $1,631.82 on Thursday. The company has a market cap of $82.73 billion, a P/E ratio of 43.07, a PEG ratio of 1.03 and a beta of 1.36. MercadoLibre, Inc. has a twelve month low of $1,495.00 and a twelve month high of $2,645.22. The company has a quick ratio of 1.14, a current ratio of 1.16 and a debt-to-equity ratio of 0.63. The business has a fifty day moving average of $1,711.90 and a 200-day moving average of $1,864.64.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $8.23 earnings per share for the quarter, missing analysts' consensus estimates of $8.75 by ($0.52). MercadoLibre had a return on equity of 29.58% and a net margin of 6.04%.The firm had revenue of $8.85 billion for the quarter, compared to the consensus estimate of $8.29 billion. During the same quarter in the previous year, the firm earned $9.74 EPS. The company's revenue was up 49.0% compared to the same quarter last year. As a group, equities research analysts expect that MercadoLibre, Inc. will post 40.97 EPS for the current year.

Insider Activity at MercadoLibre

In related news, Director Alejandro Nicolas Aguzin acquired 600 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The stock was acquired at an average cost of $1,655.93 per share, with a total value of $993,558.00. Following the completion of the purchase, the director directly owned 5,355 shares in the company, valued at approximately $8,867,505.15. This trade represents a 12.62% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.26% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Wedbush cut their price objective on MercadoLibre from $2,600.00 to $2,400.00 and set an "outperform" rating for the company in a research report on Wednesday, February 25th. Daiwa Securities Group downgraded MercadoLibre from a "buy" rating to a "hold" rating and set a $1,800.00 price objective for the company. in a research report on Friday, May 8th. Morgan Stanley cut their price objective on MercadoLibre from $2,600.00 to $2,450.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Jefferies Financial Group upgraded MercadoLibre from a "hold" rating to a "buy" rating and cut their price objective for the company from $2,800.00 to $2,600.00 in a research report on Tuesday, April 7th. Finally, Benchmark cut their price objective on MercadoLibre from $2,780.00 to $2,380.00 and set a "buy" rating for the company in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $2,255.33.

About MercadoLibre

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

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