MercadoLibre, Inc. $MELI Shares Sold by M&G PLC

Key Points

• M&G PLC reduced its MercadoLibre stake by 3.3% in the third quarter, selling 932 shares and retaining 27,172 shares worth about $46.98 million.
• MercadoLibre’s quarterly revenue rose 45.1% year over year to $10.75 billion, slightly beating expectations, but EPS of $8.83 missed the $9.27 consensus estimate.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $2,180; several firms have recently lowered their targets.

M&G PLC lowered its stake in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 3.3% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 27,172 shares of the company's stock after selling 932 shares during the period. M&G PLC owned approximately 0.05% of MercadoLibre worth $46,980,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Wedbush Fund Advisers LLC bought a new stake in shares of MercadoLibre in the 2nd quarter worth approximately $29,000. Twin Lakes Capital Management LLC bought a new stake in shares of MercadoLibre in the 2nd quarter worth approximately $31,000. NBT Bank N.A. bought a new stake in MercadoLibre in the third quarter worth $35,000. Markowski Investments bought a new stake in shares of MercadoLibre in the 2nd quarter worth $36,000. Finally, Byrne Asset Management LLC purchased a new position in MercadoLibre in the 3rd quarter worth about $40,000. 87.62% of the stock is currently owned by institutional investors.

Key MercadoLibre News

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: MercadoLibre reported 45% year-over-year revenue growth in Q3. Investors also have signs of ongoing marketplace momentum: fulfillment space grew nearly 20% quarter over quarter, and orders through Brazil’s affiliate-marketing channel rose 240% year over year. Article: MercadoLibre: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: A bullish investor view argues the recent selloff may make MELI attractive, emphasizing that users are buying more often and entrusting more money to Mercado Pago despite Brazil’s political jitters and a broader growth-stock pullback. Article: MercadoLibre Stock Looks Attractive Even as Brazil Fears Mount
• Negative Sentiment: Growth is pressuring profitability: shipping expenses and expansion investment are squeezing margins, even as logistics efficiency improves in Brazil. Q3 EPS of $8.83 also missed the $9.27 consensus estimate, tempering the strong revenue result. Article: MercadoLibre's Growth Strategy Puts Profit Margins to the Test
• Negative Sentiment: JPMorgan cut its price target to $1,850 from $2,150 and kept a neutral rating. Reports also flagged target reductions from Scotiabank and BTIG, adding to pressure on investor expectations, although JPMorgan’s revised target remained above the cited share price. Article: JPMorgan price-target update

Analysts Set New Price Targets

Several research firms have recently weighed in on MELI. New Street Research initiated coverage on MercadoLibre in a report on Wednesday, September 23rd. They set a "buy" rating and a $2,450.00 price target on the stock. Citigroup raised shares of MercadoLibre from a "neutral" rating to a "buy" rating and dropped their target price for the stock from $2,100.00 to $2,050.00 in a report on Tuesday, October 27th. Scotiabank cut their price objective on shares of MercadoLibre from $2,800.00 to $2,300.00 and set a "sector outperform" rating for the company in a report on Thursday, November 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of MercadoLibre in a research note on Tuesday, September 29th. Finally, Zacks Research upgraded MercadoLibre from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, MercadoLibre currently has a consensus rating of "Moderate Buy" and an average target price of $2,180.00.

MercadoLibre Stock Performance

Shares of NASDAQ:MELI opened at $1,532.68 on Tuesday. MercadoLibre, Inc. has a one year low of $1,469.01 and a one year high of $2,342.00. The firm has a market cap of $77.71 billion, a PE ratio of 41.11, a price-to-earnings-growth ratio of 1.22 and a beta of 1.42. The firm's 50 day simple moving average is $1,799.34 and its 200-day simple moving average is $1,801.93. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.12.

MercadoLibre (NASDAQ:MELI - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $8.83 EPS for the quarter, missing the consensus estimate of $9.27 by ($0.44). MercadoLibre had a net margin of 4.91% and a return on equity of 25.93%. The firm had revenue of $10.75 billion for the quarter, compared to analysts' expectations of $10.69 billion. During the same quarter in the prior year, the business posted $8.32 EPS. The business's quarterly revenue was up 45.1% on a year-over-year basis. As a group, equities analysts predict that MercadoLibre, Inc. will post 38.21 EPS for the current year.

MercadoLibre Profile

MercadoLibre, Inc operates an online commerce and financial technology platform focused on Latin America. Founded in Argentina in 1999, the company connects buyers and sellers through its marketplace, where businesses and individuals can list and purchase a wide range of products.

The company's services also include Mercado Pago, which offers digital payment and financial services for transactions on and off its marketplace. MercadoLibre supports commerce with services such as Mercado Envíos, its shipping and logistics platform, and provides advertising tools for merchants and brands.

MercadoLibre serves customers and businesses across numerous Latin American markets, including Brazil, Mexico and Argentina.

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