Absolute Gestao de Investimentos Ltda. Makes New $16.80 Million Investment in MercadoLibre, Inc. $MELI

Key Points

• Absolute Gestao de Investimentos Ltda. opened a new position in MercadoLibre during the first quarter, buying 9,716 shares worth about $16.8 million. The stake makes MercadoLibre its 14th largest holding and about 1.9% of its portfolio.
• Other institutional investors also made small increases in their MercadoLibre holdings, and 87.62% of the stock is owned by hedge funds and other institutions. This suggests the shares remain heavily institutionally held.
• Analyst sentiment is mixed but generally positive: MercadoLibre has a Moderate Buy consensus with an average target price of $2,258.67. The company also reported strong revenue growth in its latest quarter, though EPS missed expectations.

Absolute Gestao de Investimentos Ltda. bought a new stake in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 9,716 shares of the company's stock, valued at approximately $16,799,000. MercadoLibre accounts for about 1.9% of Absolute Gestao de Investimentos Ltda.'s portfolio, making the stock its 14th largest position.

Several other institutional investors have also recently modified their holdings of MELI. Interchange Capital Partners LLC lifted its holdings in shares of MercadoLibre by 2.1% in the 4th quarter. Interchange Capital Partners LLC now owns 243 shares of the company's stock valued at $490,000 after buying an additional 5 shares during the period. Cornerstone Select Advisors LLC boosted its holdings in MercadoLibre by 2.9% during the fourth quarter. Cornerstone Select Advisors LLC now owns 176 shares of the company's stock worth $355,000 after buying an additional 5 shares in the last quarter. Mitchell Capital Management Co. grew its position in MercadoLibre by 0.4% during the fourth quarter. Mitchell Capital Management Co. now owns 1,262 shares of the company's stock valued at $2,542,000 after buying an additional 5 shares during the period. Strategic Advisors LLC raised its position in shares of MercadoLibre by 0.4% in the fourth quarter. Strategic Advisors LLC now owns 1,273 shares of the company's stock worth $2,564,000 after acquiring an additional 5 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC boosted its stake in shares of MercadoLibre by 2.0% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 259 shares of the company's stock worth $605,000 after acquiring an additional 5 shares in the last quarter. 87.62% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Daiwa Securities Group cut shares of MercadoLibre from a "buy" rating to a "hold" rating and set a $1,800.00 price target on the stock. in a research note on Friday, May 8th. Citigroup boosted their target price on shares of MercadoLibre from $1,950.00 to $2,000.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 15th. Weiss Ratings restated a "hold (c)" rating on shares of MercadoLibre in a research report on Thursday, July 2nd. Jefferies Financial Group upgraded MercadoLibre from a "hold" rating to a "buy" rating and decreased their target price for the company from $2,800.00 to $2,600.00 in a research report on Tuesday, April 7th. Finally, The Goldman Sachs Group set a $2,100.00 target price on shares of MercadoLibre in a research note on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $2,258.67.

Insider Buying and Selling at MercadoLibre

In related news, Director Alejandro Nicolas Aguzin acquired 600 shares of MercadoLibre stock in a transaction dated Friday, May 22nd. The stock was acquired at an average price of $1,655.93 per share, for a total transaction of $993,558.00. Following the transaction, the director owned 5,355 shares of the company's stock, valued at $8,867,505.15. This represents a 12.62% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.26% of the company's stock.

MercadoLibre Stock Up 0.2%

Shares of NASDAQ MELI opened at $1,801.44 on Friday. 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's 50 day moving average is $1,705.94 and its two-hundred day moving average is $1,815.81. MercadoLibre, Inc. has a 52-week low of $1,495.00 and a 52-week high of $2,548.50. The firm has a market cap of $91.33 billion, a price-to-earnings ratio of 47.54, a PEG ratio of 1.11 and a beta of 1.35.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $8.23 earnings per share (EPS) 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 business had revenue of $8.85 billion for the quarter, compared to analysts' expectations of $8.29 billion. During the same quarter last year, the company earned $9.74 earnings per share. The firm's revenue for the quarter was up 49.0% on a year-over-year basis. Research analysts predict that MercadoLibre, Inc. will post 41 EPS for the current year.

MercadoLibre Company Profile

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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