MercadoLibre, Inc. $MELI Stock: Allen Investment Management LLC Lowers Stake

Key Points

• Allen Investment Management cut its MercadoLibre stake by 16.2% in the third quarter, selling 5,525 shares and ending the period with 28,538 shares worth about $49.3 million.
• MercadoLibre’s third-quarter revenue rose 45.1% year over year to $10.75 billion, topping estimates, but EPS of $8.83 missed the $9.27 consensus; higher fulfillment, shipping and marketing costs pressured operating income and margins.
• Analysts maintain a consensus “Moderate Buy” rating and a $2,198.75 target price, though several recently lowered their targets. Institutional investors collectively own 87.62% of the stock.

Allen Investment Management LLC reduced its position in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 16.2% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 28,538 shares of the company's stock after selling 5,525 shares during the period. Allen Investment Management LLC owned about 0.06% of MercadoLibre worth $49,329,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in MELI. Wedbush Fund Advisers LLC acquired a new stake in shares of MercadoLibre during the second quarter worth $29,000. Twin Lakes Capital Management LLC acquired a new position in shares of MercadoLibre in the 2nd quarter valued at about $31,000. NBT Bank N.A. acquired a new position in shares of MercadoLibre in the 3rd quarter valued at about $35,000. Markowski Investments acquired a new position in shares of MercadoLibre in the 2nd quarter valued at about $36,000. Finally, Byrne Asset Management LLC bought a new stake in shares of MercadoLibre during the 3rd quarter valued at about $40,000. 87.62% of the stock is currently owned by institutional investors.

More MercadoLibre News

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Third-quarter revenue and financial income rose 45% year over year to $10.75 billion, beating estimates; growth was broad-based, with Brazil especially strong and fintech continuing to expand. Mercado Libre Revenue Reaches $10.75 Billion in Q3 2026
• Positive Sentiment: Management is investing in fulfillment capacity, shipping and marketing to attract and retain customers, arguing the spending can support longer-term growth. The company also outlined further fulfillment expansion. MercadoLibre Plunged After Earnings. Here's Why I'm Not Selling.
• Neutral Sentiment: Some brokers kept positive ratings despite reducing price targets, indicating continued confidence in MELI’s longer-term prospects but greater caution about near-term expectations. Scotiabank analyst rating and price target
• Negative Sentiment: Quarterly EPS of $8.83 missed estimates. Operating income fell 6% to $676 million, and the operating margin narrowed to 6.3% from 9.8% a year earlier as fulfillment, shipping subsidies and marketing costs increased. Investors are concerned that growth is coming at the expense of near-term earnings. MercadoLibre Pays Up to Win Shoppers' Loyalty
• Negative Sentiment: Reports also cite foreign-exchange exposure and regional political uncertainty, including Brazil’s election aftermath, as risks that could add volatility to results. Q3 Earnings Have Investors Wondering: Is Mercado Libre Finally a Buy?

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Zacks Research upgraded shares of MercadoLibre from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. BTIG Research cut their target price on shares of MercadoLibre from $2,150.00 to $2,050.00 and set a "buy" rating on the stock in a report on Thursday. JPMorgan Chase & Co. lifted their target price on MercadoLibre from $1,900.00 to $2,150.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Cantor Fitzgerald decreased their target price on MercadoLibre from $2,200.00 to $2,000.00 and set an "overweight" rating for the company in a research note on Thursday. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of MercadoLibre in a report on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $2,198.75.

MercadoLibre Price Performance

Shares of NASDAQ MELI opened at $1,510.00 on Friday. MercadoLibre, Inc. has a fifty-two week low of $1,469.01 and a fifty-two week high of $2,342.00. The firm's 50-day simple moving average is $1,808.01 and its 200 day simple moving average is $1,804.55. The company has a quick ratio of 1.10, a current ratio of 1.12 and a debt-to-equity ratio of 0.53. The stock has a market cap of $76.56 billion, a P/E ratio of 40.50, a P/E/G ratio of 1.06 and a beta of 1.42.

MercadoLibre (NASDAQ:MELI - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported $8.83 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $9.27 by ($0.44). The company had revenue of $10.75 billion during the quarter, compared to the consensus estimate of $10.69 billion. MercadoLibre had a net margin of 4.91% and a return on equity of 25.93%. The business's quarterly revenue was up 45.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $8.32 EPS. Equities analysts expect 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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