MercadoLibre, Inc. $MELI Shares Sold by Wasatch Advisors LP

Key Points

• Wasatch Advisors LP trimmed its MercadoLibre stake by 0.8% in the first quarter, though it still held 122,923 shares worth about $212.5 million. MercadoLibre remained a meaningful position, representing 1.4% of the fund’s portfolio.
• MercadoLibre’s latest quarterly results were mixed: earnings of $8.23 per share missed estimates, but revenue of $8.85 billion beat expectations and rose 49% year over year. The company also reported strong profitability metrics, including a 29.58% return on equity.
• Analysts remain broadly positive despite recent target cuts, with a consensus rating of “Moderate Buy” and an average price target of $2,255.33. Meanwhile, insider buying was notable as director Alejandro Nicolas Aguzin purchased 600 shares in May.

Wasatch Advisors LP reduced its holdings in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 0.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 122,923 shares of the company's stock after selling 983 shares during the quarter. MercadoLibre accounts for 1.4% of Wasatch Advisors LP's portfolio, making the stock its 21st largest position. Wasatch Advisors LP owned about 0.24% of MercadoLibre worth $212,536,000 as of its most recent SEC filing.

Other large investors also recently made changes to their positions in the company. Wealth Effects LLC raised its stake in shares of MercadoLibre by 367.6% in the 1st quarter. Wealth Effects LLC now owns 1,183 shares of the company's stock valued at $2,045,000 after acquiring an additional 930 shares during the period. Wesbanco Bank Inc. lifted its holdings in shares of MercadoLibre by 100.0% during the 1st quarter. Wesbanco Bank Inc. now owns 240 shares of the company's stock valued at $415,000 after acquiring an additional 120 shares in the last quarter. Xcel Wealth Management LLC boosted its position in MercadoLibre by 184.9% during the 1st quarter. Xcel Wealth Management LLC now owns 453 shares of the company's stock worth $783,000 after purchasing an additional 294 shares during the period. Generali Investments Towarzystwo Funduszy Inwestycyjnych boosted its position in MercadoLibre by 17.2% during the 1st quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 170 shares of the company's stock worth $294,000 after purchasing an additional 25 shares during the period. Finally, Meyer Handelman Co. increased its holdings in MercadoLibre by 43.5% in the 1st quarter. Meyer Handelman Co. now owns 637 shares of the company's stock valued at $1,101,000 after purchasing an additional 193 shares in the last quarter. Institutional investors and hedge funds own 87.62% of the company's stock.

MercadoLibre Stock Performance

MercadoLibre stock opened at $1,675.10 on Friday. MercadoLibre, Inc. has a 12-month low of $1,495.00 and a 12-month high of $2,645.22. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.16 and a quick ratio of 1.14. The company has a market capitalization of $84.93 billion, a price-to-earnings ratio of 44.21, a price-to-earnings-growth ratio of 1.00 and a beta of 1.36. The firm's fifty day moving average price is $1,687.25 and its 200 day moving average price is $1,843.28.

MercadoLibre (NASDAQ:MELI - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $8.23 earnings per share for the quarter, missing analysts' consensus estimates of $8.75 by ($0.52). The firm had revenue of $8.85 billion during the quarter, compared to analysts' expectations of $8.29 billion. MercadoLibre had a net margin of 6.04% and a return on equity of 29.58%. The business's quarterly revenue was up 49.0% on a year-over-year basis. During the same period in the previous year, the company earned $9.74 earnings per share. On average, research analysts forecast that MercadoLibre, Inc. will post 40.97 EPS for the current fiscal year.

Insider Activity at MercadoLibre

In other MercadoLibre news, Director Alejandro Nicolas Aguzin purchased 600 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were acquired at an average price of $1,655.93 per share, for a total transaction of $993,558.00. Following the completion of the purchase, the director owned 5,355 shares in the company, valued at $8,867,505.15. The trade was a 12.62% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.26% of the company's stock.

Wall Street Analyst Weigh In

MELI has been the topic of several research reports. Barclays cut their price objective on MercadoLibre from $2,500.00 to $2,300.00 and set an "overweight" rating on the stock in a research report on Monday, May 11th. Scotiabank decreased their target price on MercadoLibre from $3,500.00 to $2,800.00 and set a "sector outperform" rating for the company in a research report on Thursday, May 7th. BTIG Research reiterated a "buy" rating and issued a $2,150.00 target price on shares of MercadoLibre in a research note on Tuesday, June 2nd. UBS Group dropped their target price on MercadoLibre from $2,050.00 to $1,750.00 and set a "neutral" rating on the stock in a report on Wednesday, May 13th. Finally, Zacks Research lowered MercadoLibre from a "hold" rating to a "strong sell" rating in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $2,255.33.

MercadoLibre Profile

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.

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