Entropy Technologies LP Acquires Shares of 5,597 MercadoLibre, Inc. (NASDAQ:MELI)

Key Points

• Entropy Technologies LP has acquired 5,597 shares of MercadoLibre, Inc. (NASDAQ:MELI), valued at approximately $10.9 million, making it the firm’s sixth largest holding.
• Hedge fund ownership in MercadoLibre is high, with 87.62% of the stock currently held by institutional investors.
• MercadoLibre reported a 33.8% year-over-year increase in quarterly revenue, though it missed earnings expectations with an EPS of $10.31 compared to the forecast of $12.01.

Entropy Technologies LP bought a new position in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 5,597 shares of the company's stock, valued at approximately $10,919,000. MercadoLibre makes up approximately 1.1% of Entropy Technologies LP's investment portfolio, making the stock its 6th largest position.

Several other hedge funds also recently bought and sold shares of the company. Polen Capital Management LLC grew its stake in MercadoLibre by 87.3% during the first quarter. Polen Capital Management LLC now owns 68,534 shares of the company's stock valued at $133,700,000 after acquiring an additional 31,939 shares in the last quarter. Invesco Ltd. grew its stake in MercadoLibre by 22.4% during the first quarter. Invesco Ltd. now owns 570,967 shares of the company's stock valued at $1,113,881,000 after acquiring an additional 104,554 shares in the last quarter. Sierra Summit Advisors LLC grew its stake in MercadoLibre by 8.1% during the first quarter. Sierra Summit Advisors LLC now owns 5,582 shares of the company's stock valued at $10,890,000 after acquiring an additional 419 shares in the last quarter. True North Advisors LLC grew its stake in MercadoLibre by 7.0% during the first quarter. True North Advisors LLC now owns 305 shares of the company's stock valued at $595,000 after acquiring an additional 20 shares in the last quarter. Finally, Benjamin Edwards Inc. grew its stake in MercadoLibre by 6.5% during the first quarter. Benjamin Edwards Inc. now owns 833 shares of the company's stock valued at $1,626,000 after acquiring an additional 51 shares in the last quarter. Hedge funds and other institutional investors own 87.62% of the company's stock.

MercadoLibre Trading Down 2.6%

Shares of NASDAQ MELI traded down $61.66 during mid-day trading on Monday, hitting $2,292.04. The stock had a trading volume of 351,316 shares, compared to its average volume of 343,773. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.18 and a current ratio of 1.20. MercadoLibre, Inc. has a 1 year low of $1,646.00 and a 1 year high of $2,645.22. The business has a 50 day moving average price of $2,431.57 and a two-hundred day moving average price of $2,250.90. The firm has a market cap of $116.21 billion, a P/E ratio of 56.61, a price-to-earnings-growth ratio of 1.47 and a beta of 1.46.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its earnings results on Monday, August 4th. The company reported $10.31 EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to analysts' expectations of $6.57 billion. During the same period in the previous year, the firm earned $10.48 earnings per share. The firm's quarterly revenue was up 33.8% compared to the same quarter last year. On average, equities analysts anticipate that MercadoLibre, Inc. will post 43.96 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on MELI shares. Barclays dropped their target price on shares of MercadoLibre from $3,100.00 to $3,000.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. Daiwa Capital Markets started coverage on shares of MercadoLibre in a research report on Friday, August 1st. They set a "buy" rating and a $3,000.00 target price for the company. Raymond James Financial reiterated a "strong-buy" rating and set a $2,750.00 target price on shares of MercadoLibre in a research report on Tuesday, August 5th. Scotiabank started coverage on shares of MercadoLibre in a research report on Monday, July 28th. They set a "sector outperform" rating and a $3,500.00 target price for the company. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $2,700.00 target price on shares of MercadoLibre in a research report on Tuesday, August 5th. Three equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, MercadoLibre currently has an average rating of "Moderate Buy" and a consensus 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.