MercadoLibre, Inc. $MELI Shares Sold by Deepwater Asset Management LLC

Key Points

• Deepwater Asset Management LLC has reduced its stake in MercadoLibre, Inc. by 24.5%, selling 2,181 shares, and now holds 6,726 shares valued at approximately $13.12 million.
• MercadoLibre missed analysts' earnings expectations for the last quarter, posting earnings of $10.31 per share against a consensus estimate of $12.01, despite a revenue increase of 33.8% year-over-year.
• Analysts continue to show confidence in the stock, with a consensus rating of "Moderate Buy" and an average target price of $2,795.00, which reflects positive sentiment despite recent earnings misses.

Deepwater Asset Management LLC lowered its position in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 24.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 6,726 shares of the company's stock after selling 2,181 shares during the period. MercadoLibre comprises approximately 5.6% of Deepwater Asset Management LLC's holdings, making the stock its 4th largest holding. Deepwater Asset Management LLC's holdings in MercadoLibre were worth $13,122,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Legal Advantage Investments Inc. increased its stake in shares of MercadoLibre by 3.8% during the first quarter. Legal Advantage Investments Inc. now owns 1,631 shares of the company's stock valued at $3,182,000 after buying an additional 60 shares during the period. Fox Run Management L.L.C. purchased a new position in MercadoLibre in the first quarter valued at about $3,685,000. Vestmark Advisory Solutions Inc. purchased a new position in MercadoLibre in the first quarter valued at about $390,000. Ground Swell Capital LLC purchased a new position in MercadoLibre in the first quarter valued at about $439,000. Finally, GQG Partners LLC grew its stake in MercadoLibre by 23.5% in the first quarter. GQG Partners LLC now owns 461,875 shares of the company's stock valued at $901,058,000 after purchasing an additional 87,912 shares during the last quarter. Hedge funds and other institutional investors own 87.62% of the company's stock.

MercadoLibre Stock Performance

Shares of MercadoLibre stock traded up $72.50 on Friday, reaching $2,392.30. 411,196 shares of the stock were exchanged, compared to its average volume of 363,335. The company has a quick ratio of 1.18, a current ratio of 1.20 and a debt-to-equity ratio of 0.61. MercadoLibre, Inc. has a twelve month low of $1,646.00 and a twelve month high of $2,645.22. The firm has a market capitalization of $121.29 billion, a price-to-earnings ratio of 59.08, a PEG ratio of 1.52 and a beta of 1.46. The business has a 50 day moving average price of $2,414.57 and a two-hundred day moving average price of $2,263.57.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its earnings results on Monday, August 4th. The company reported $10.31 EPS for the quarter, missing analysts' consensus estimates of $12.01 by ($1.70). MercadoLibre had a return on equity of 43.06% and a net margin of 8.52%. The firm had revenue of $6.79 billion for the quarter, compared to analyst estimates of $6.57 billion. During the same period last year, the firm earned $10.48 EPS. The company's revenue for the quarter was up 33.8% compared to the same quarter last year. Analysts anticipate that MercadoLibre, Inc. will post 43.96 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on MELI shares. JPMorgan Chase & Co. lifted their target price on MercadoLibre from $2,600.00 to $2,700.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Raymond James Financial reiterated a "strong-buy" rating and issued a $2,750.00 target price on shares of MercadoLibre in a research note on Tuesday, August 5th. Wall Street Zen lowered MercadoLibre from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Cantor Fitzgerald reiterated an "overweight" rating and issued a $2,700.00 target price on shares of MercadoLibre in a research note on Tuesday, August 5th. Finally, Benchmark reiterated a "buy" rating and issued a $2,875.00 target price on shares of MercadoLibre in a research note on Tuesday, August 5th. Three equities research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, MercadoLibre has an average rating of "Moderate Buy" and an average price target of $2,795.00.

About MercadoLibre

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.