MercadoLibre, Inc. $MELI Shares Newly Bought by Verus Wealth Management LLC

Key Points

• Verus Wealth Management initiated a 1,075-share MercadoLibre position worth approximately $1.86 million, making the stock 1.2% of its portfolio. Institutional investors collectively own 87.62% of MELI.
• MercadoLibre exceeded quarterly expectations with $9.19 in earnings per share versus $8.65 expected and $10.17 billion in revenue, up 49.8% year over year. However, reinvestment in growth has pressured operating income and remains a profitability concern.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and average price target of $2,251.88 versus the recent price of $1,876.04, though Cantor Fitzgerald recently reduced its target to $2,200.

Verus Wealth Management LLC bought a new stake in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,075 shares of the company's stock, valued at approximately $1,858,000. MercadoLibre accounts for about 1.2% of Verus Wealth Management LLC's portfolio, making the stock its 25th largest holding.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Purpose Unlimited Inc. purchased a new position in MercadoLibre in the fourth quarter valued at approximately $28,000. Wedbush Fund Advisers LLC purchased a new stake in MercadoLibre in the second quarter worth $29,000. Twin Lakes Capital Management LLC purchased a new stake in MercadoLibre in the second quarter worth $31,000. Hanson & Doremus Investment Management bought a new stake in shares of MercadoLibre in the first quarter valued at $35,000. Finally, Markowski Investments bought a new stake in shares of MercadoLibre in the second quarter valued at $36,000. 87.62% of the stock is owned by institutional investors.

MercadoLibre Price Performance

Shares of MELI traded down $16.40 during mid-day trading on Tuesday, reaching $1,876.04. 254,041 shares of the stock traded hands, compared to its average volume of 538,513. The firm has a fifty day moving average price of $1,864.01 and a 200 day moving average price of $1,780.11. The company has a market cap of $95.11 billion, a price-to-earnings ratio of 51.02, a price-to-earnings-growth ratio of 1.32 and a beta of 1.31. The company has a current ratio of 1.12, a quick ratio of 1.10 and a debt-to-equity ratio of 0.53. MercadoLibre, Inc. has a 1 year low of $1,495.00 and a 1 year high of $2,428.00.

MercadoLibre (NASDAQ:MELI - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $9.19 earnings per share for the quarter, topping analysts' consensus estimates of $8.65 by $0.54. The business had revenue of $10.17 billion for 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 company's quarterly revenue was up 49.8% compared to the same quarter last year. During the same period in the prior year, the company earned $10.31 EPS. As a group, equities research analysts predict that MercadoLibre, Inc. will post 38.29 earnings per share for the current year.

Trending Headlines about MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: MercadoLibre’s integrated commerce-and-fintech “flywheel” continues to strengthen. Ecosystem users grew 37%, supporting higher shopping activity, payments adoption, credit usage and customer engagement. MercadoLibre's Commerce-Fintech Flywheel Gains Strength
• Positive Sentiment: Several valuation reports remain bullish, citing roughly 43%–50% revenue growth, strong commerce and fintech momentum, expanding payments volume, positive cash flow and possible catalysts in quick commerce, pharmacy and social commerce. MercadoLibre: Making The Right Investment Moves, Near 13% FCF Yield
• Positive Sentiment: MarketWatch cited a $2,299.48 price target, and another analysis reported a street target near $2,270—both implying upside from the recent trading range. MarketWatch lists USD 2,299.48 target for MercadoLibre stock
• Neutral Sentiment: Investors are also considering Brazil’s election, easing inflation and interest-rate trends as potential macro tailwinds, although election-related enthusiasm has already contributed to a recent rally. MercadoLibre Stock Rose 9% in October on Brazil’s Election
• Negative Sentiment: Profitability is the key concern. Second-quarter revenue and financial income rose about 50% to $10.17 billion, but operating income declined 17% to $683 million as management reinvested in growth. That tradeoff could pressure margins and valuation if growth slows. MercadoLibre Trades Profit for Scale
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $2,300 to $2,200, despite maintaining an Overweight rating, signaling more cautious near-term expectations. Cantor Fitzgerald Issues Forecast for MercadoLibre

Analysts Set New Price Targets

MELI has been the topic of a number of recent research reports. Cantor Fitzgerald dropped their price target on MercadoLibre from $2,300.00 to $2,200.00 and set an "overweight" rating on the stock in a research report on Monday. JPMorgan Chase & Co. lifted their price objective on MercadoLibre from $1,900.00 to $2,150.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Susquehanna lifted their price objective on MercadoLibre to $2,400.00 and gave the stock a "positive" rating in a report on Tuesday, October 6th. BTIG Research restated a "buy" rating and issued a $2,150.00 price objective on shares of MercadoLibre in a research note on Thursday, September 3rd. Finally, Zacks Research upgraded MercadoLibre from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Twelve analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, MercadoLibre presently has a consensus rating of "Moderate Buy" and an average target price of $2,251.88.

MercadoLibre Company Profile

MercadoLibre, Inc NASDAQ: MELI operates a technology platform serving commerce and financial-services customers across Latin America. Its online marketplace connects buyers and sellers, offering products across categories including electronics, apparel, home goods, automotive products and consumer packaged goods.

The company also provides a range of supporting services, including Mercado Pago, a digital payments platform that enables online and in-person transactions, money transfers and other financial 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.