BlackRock Inc. Invests $2.25 Billion in MercadoLibre, Inc. $MELI

Key Points

• BlackRock acquired 1.32 million MercadoLibre shares worth approximately $2.25 billion during the second quarter, giving it a 2.61% stake. Institutional investors collectively own 87.62% of the company.
• MercadoLibre reported quarterly earnings of $9.19 per share and revenue of $10.17 billion, exceeding analyst estimates; revenue increased 49.8% year over year.
• Analysts maintain a generally positive outlook, with an average “Moderate Buy” rating and a consensus price target of $2,272, compared with the stock’s opening price of $1,908.65.

BlackRock Inc. acquired a new position in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 1,323,217 shares of the company's stock, valued at approximately $2,246,015,000. BlackRock Inc. owned about 2.61% of MercadoLibre at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Laurel Wealth Advisors LLC purchased a new position in MercadoLibre in the fourth quarter worth $26,000. Transamerica Financial Advisors LLC bought a new position in MercadoLibre in the fourth quarter valued at $26,000. Purpose Unlimited Inc. purchased a new stake in MercadoLibre during the fourth quarter valued at about $28,000. Darwin Wealth Management LLC purchased a new stake in MercadoLibre during the second quarter valued at about $29,000. Finally, Curio Wealth LLC bought a new stake in MercadoLibre during the fourth quarter worth about $30,000. 87.62% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

MELI has been the topic of several recent research reports. JPMorgan Chase & Co. increased their price objective on MercadoLibre from $1,900.00 to $2,150.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of MercadoLibre in a research note on Thursday, July 2nd. Benchmark reduced their price target on shares of MercadoLibre from $2,780.00 to $2,380.00 and set a "buy" rating on the stock in a research report on Friday, May 8th. Raymond James Financial set a $2,000.00 price objective on shares of MercadoLibre in a report on Friday, May 8th. Finally, BTIG Research reaffirmed a "buy" rating and set a $2,150.00 target price on shares of MercadoLibre in a report on Thursday, August 6th. Eleven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $2,272.00.

MercadoLibre Price Performance

Shares of MercadoLibre stock opened at $1,908.65 on Thursday. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.12 and a quick ratio of 1.10. MercadoLibre, Inc. has a one year low of $1,495.00 and a one year high of $2,548.50. The business's 50 day simple moving average is $1,780.15 and its two-hundred day simple moving average is $1,776.50. The stock has a market capitalization of $96.77 billion, a P/E ratio of 51.91, a price-to-earnings-growth ratio of 1.22 and a beta of 1.34.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $9.19 earnings per share for the quarter, beating analysts' consensus estimates of $8.65 by $0.54. The firm had revenue of $10.17 billion during the quarter, compared to analyst estimates of $9.79 billion. MercadoLibre had a return on equity of 26.54% and a net margin of 5.30%.The business's quarterly revenue was up 49.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $10.31 earnings per share. Analysts forecast that MercadoLibre, Inc. will post 39.11 EPS for the current year.

Insider Buying and Selling

In related news, Director Alejandro Nicolas Aguzin purchased 600 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were acquired at an average price of $1,655.93 per share, for a total transaction of $993,558.00. Following the completion of the acquisition, the director directly owned 5,355 shares in the company, valued at approximately $8,867,505.15. The trade was a 12.62% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.26% of the stock is owned by insiders.

MercadoLibre 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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