MercadoLibre, Inc. $MELI Shares Bought by Avity Investment Management Inc.

Key Points

• Avity Investment Management increased its MercadoLibre position by 31.5% in the second quarter, bringing its holdings to 12,388 shares valued at approximately $21.0 million. Institutional investors collectively own 87.62% of the stock.
• MercadoLibre exceeded quarterly expectations, reporting $10.17 billion in revenue, up 49.8% year over year, and earnings of $9.19 per share versus the $8.65 consensus estimate. However, net profit declined for a third consecutive quarter as the company invests heavily in growth and faces higher costs and credit losses.
• Analysts maintain a generally positive view, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $2,255.33, despite mixed target revisions and shares trading at a high valuation.

Avity Investment Management Inc. raised its position in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 31.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 12,388 shares of the company's stock after buying an additional 2,967 shares during the quarter. MercadoLibre makes up approximately 1.3% of Avity Investment Management Inc.'s portfolio, making the stock its 28th biggest position. Avity Investment Management Inc.'s holdings in MercadoLibre were worth $21,027,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. Brown Advisory Inc. grew its stake in shares of MercadoLibre by 2,494.9% in the 4th quarter. Brown Advisory Inc. now owns 15,362 shares of the company's stock valued at $30,943,000 after purchasing an additional 14,770 shares during the last quarter. Thompson Siegel & Walmsley LLC raised its stake in shares of MercadoLibre by 238.3% during the fourth quarter. Thompson Siegel & Walmsley LLC now owns 2,030 shares of the company's stock worth $4,089,000 after purchasing an additional 1,430 shares during the last quarter. TIAA Trust National Association lifted its holdings in shares of MercadoLibre by 10.9% during the fourth quarter. TIAA Trust National Association now owns 11,011 shares of the company's stock worth $22,179,000 after purchasing an additional 1,083 shares during the period. Deepwater Asset Management LLC grew its position in MercadoLibre by 38.6% in the 4th quarter. Deepwater Asset Management LLC now owns 7,765 shares of the company's stock valued at $15,641,000 after buying an additional 2,164 shares during the last quarter. Finally, PKO Investment Management Joint Stock Co grew its position in MercadoLibre by 28.0% in the 4th quarter. PKO Investment Management Joint Stock Co now owns 3,200 shares of the company's stock valued at $6,446,000 after buying an additional 700 shares during the last quarter. 87.62% of the stock is currently owned by hedge funds and other institutional investors.

MercadoLibre Trading Down 0.5%

Shares of MELI stock opened at $1,820.69 on Friday. The business's fifty day moving average price is $1,747.86 and its 200 day moving average price is $1,797.03. MercadoLibre, Inc. has a 1-year low of $1,495.00 and a 1-year high of $2,548.50. The firm has a market capitalization of $92.31 billion, a PE ratio of 49.52, a P/E/G ratio of 1.12 and a beta of 1.34. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.16 and a quick ratio of 1.14.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $9.19 EPS for the quarter, beating analysts' consensus estimates of $8.65 by $0.54. MercadoLibre had a return on equity of 27.60% and a net margin of 5.30%.The company had revenue of $10.17 billion during the quarter, compared to the consensus estimate of $9.79 billion. During the same quarter last year, the company earned $10.31 earnings per share. MercadoLibre's quarterly revenue was up 49.8% compared to the same quarter last year. As a group, sell-side analysts forecast that MercadoLibre, Inc. will post 40.69 EPS for the current fiscal year.

MercadoLibre News Summary

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Q2 results exceeded expectations. Revenue increased 49.8% year over year to $10.17 billion, surpassing estimates of $9.79 billion, while earnings of $9.19 per share beat consensus. Growth was broad-based across commerce, fintech and advertising. MercadoLibre's Q2 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Engagement and ecosystem momentum remain strong. MercadoLibre surpassed $10 billion in quarterly revenue for the first time, with record payment volumes, increased unique buyers and stronger interaction between its marketplace and financial-services products. Lowering Brazil’s free-shipping threshold reportedly converted monthly shoppers into more frequent users. Mercado Libre Free Shipping Converts Monthly Shoppers Into Daily Active Users
• Positive Sentiment: Analysts remain constructive. Cantor Fitzgerald raised its price target to $2,300 and maintained an overweight rating, while BTIG reaffirmed its buy rating with a $2,150 target. Analyst Rating and Price Target Updates
• Neutral Sentiment: Management is prioritizing long-term scale over near-term margins. Spending on free shipping, first-party inventory, credit-card issuance, artificial intelligence and lower-end customer acquisition is intended to deepen loyalty and expand MercadoLibre’s competitive moat. MercadoLibre Q2 Earnings Call Focuses on Engagement Over Margin
• Negative Sentiment: Profitability is the central concern. Margin compression, higher costs and rising nonperforming loans caused net profit to decline for a third consecutive quarter. Although management characterizes the pressure as strategic and temporary, investors appear concerned that reinvestment may take longer to translate into earnings and cash flow. MercadoLibre's Net Profit Beats Estimates Despite Third Straight Decline

Insider Buying and Selling at MercadoLibre

In related news, Director Alejandro Nicolas Aguzin purchased 600 shares of the business's 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 acquisition, the director directly owned 5,355 shares of the company's stock, valued at $8,867,505.15. This trade represents a 12.62% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.26% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several brokerages have issued reports on MELI. JPMorgan Chase & Co. dropped their price objective on shares of MercadoLibre from $2,100.00 to $1,900.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 13th. Scotiabank reduced their target price on shares of MercadoLibre from $3,500.00 to $2,800.00 and set a "sector outperform" rating for the company in a research note on Thursday, May 7th. Cantor Fitzgerald lifted their target price on shares of MercadoLibre from $2,150.00 to $2,300.00 and gave the company an "overweight" rating in a report on Thursday. Citigroup boosted their price target 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. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of MercadoLibre in a report on Thursday, July 2nd. Eleven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, MercadoLibre currently has a consensus rating of "Moderate Buy" and an average price target of $2,255.33.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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