Arrowstreet Capital Limited Partnership Sells 148,265 Shares of MercadoLibre, Inc. $MELI

Key Points

• Arrowstreet Capital trimmed its stake in MercadoLibre by 28.5%, selling 148,265 shares and leaving it with 372,766 shares valued at about $871.1 million (0.74% ownership).
• JPMorgan downgraded MELI to Neutral and cut its price target to $2,100, a move that helped drive the stock lower (the shares were trading down ~4.9%) even as the consensus target remains around $2,725, signaling mixed near-term sentiment but continued analyst upside.
• MercadoLibre missed quarterly EPS ($11.03 vs. $11.66) but reported revenue of $8.76 billion (up 44.6% YoY); the company also committed $3.4 billion to Argentina for 2026, supporting long‑term growth while likely pressuring near‑term margins and cash flow.

Arrowstreet Capital Limited Partnership trimmed its position in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 28.5% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 372,766 shares of the company's stock after selling 148,265 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.74% of MercadoLibre worth $871,113,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Lavaca Capital LLC raised its holdings in shares of MercadoLibre by 140,201.3% in the second quarter. Lavaca Capital LLC now owns 1,066,290 shares of the company's stock valued at $2,786,888,000 after acquiring an additional 1,065,530 shares in the last quarter. Norges Bank bought a new position in MercadoLibre during the 2nd quarter worth about $698,848,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its position in MercadoLibre by 304.7% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 255,103 shares of the company's stock valued at $666,744,000 after purchasing an additional 192,071 shares during the period. Flossbach Von Storch SE increased its position in MercadoLibre by 1,669.4% during the 3rd quarter. Flossbach Von Storch SE now owns 181,719 shares of the company's stock valued at $424,666,000 after purchasing an additional 171,449 shares during the period. Finally, Franklin Resources Inc. raised its holdings in shares of MercadoLibre by 29.0% in the 3rd quarter. Franklin Resources Inc. now owns 418,002 shares of the company's stock valued at $976,846,000 after purchasing an additional 93,854 shares in the last quarter. Institutional investors own 87.62% of the company's stock.

Key MercadoLibre News

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Many analysts remain constructive on MELI over the longer term — consensus still shows heavy buy/support and a well-above-current average price target, underscoring that several firms view the pullback as a buying opportunity. Article Title
• Neutral Sentiment: Morgan Stanley trimmed its price target to $2,600 — a downgrade in view but still a level implying meaningful upside versus today’s price, reflecting mixed near-term views but continued fundamental support from some large brokers. Article Title
• Neutral Sentiment: MercadoLibre committed $3.4 billion of investment in Argentina for 2026 (logistics, tech, fintech) — this should support long-term market share and growth but will pressure margins and cash flow in the near term. Article Title
• Negative Sentiment: JPMorgan downgraded MELI from Overweight to Neutral and cut its price target to $2,100, flagging margin pressure from heavy reinvestment — that call triggered immediate selling and is the main proximate cause of today’s decline. Article Title
• Negative Sentiment: Broader concerns are weighing on risk-assets: investors are pricing in margin compression from continued heavy spending (logistics, credit expansion, marketing) and short-term geopolitical risk that has amplified selling in the session. Recent coverage highlights the margin squeeze and macro/geopolitical sensitivity. Article Title

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MELI. BTIG Research lowered their price target on shares of MercadoLibre from $2,750.00 to $2,650.00 and set a "buy" rating for the company in a research report on Wednesday, February 25th. Itau BBA Securities reissued an "outperform" rating on shares of MercadoLibre in a report on Wednesday, February 25th. Wedbush lowered their target price on MercadoLibre from $2,600.00 to $2,400.00 and set an "outperform" rating for the company in a report on Wednesday, February 25th. JPMorgan Chase & Co. cut MercadoLibre from an "overweight" rating to a "neutral" rating and dropped their target price for the company from $2,650.00 to $2,100.00 in a research report on Thursday. Finally, Cantor Fitzgerald cut their price target on MercadoLibre from $2,750.00 to $2,400.00 and set an "overweight" rating on the stock in a report on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $2,725.33.

MercadoLibre Trading Down 4.9%

NASDAQ:MELI opened at $1,680.27 on Friday. The stock has a market capitalization of $85.19 billion, a price-to-earnings ratio of 42.65, a PEG ratio of 0.94 and a beta of 1.48. MercadoLibre, Inc. has a 52 week low of $1,631.18 and a 52 week high of $2,645.22. The company has a quick ratio of 1.15, a current ratio of 1.17 and a debt-to-equity ratio of 0.68. The firm has a 50 day moving average of $2,002.29 and a 200 day moving average of $2,124.62.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The company reported $11.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $11.66 by ($0.63). The firm had revenue of $8.76 billion during the quarter, compared to analysts' expectations of $8.45 billion. MercadoLibre had a return on equity of 33.73% and a net margin of 6.91%.MercadoLibre's revenue for the quarter was up 44.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $12.61 earnings per share. As a group, sell-side analysts anticipate that MercadoLibre, Inc. will post 43.96 earnings per share for the current fiscal year.

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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