MercadoLibre, Inc. $MELI Stock: Perpetual Ltd Cuts Holdings

Key Points

• Perpetual Ltd reduced its MercadoLibre stake by 11.7% in the third quarter, selling 4,951 shares and retaining 37,486 shares worth approximately $64.8 million. Institutional investors still own 87.62% of MELI.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $2,245.62; Susquehanna raised its target to $2,400.
• MercadoLibre reported strong growth, with quarterly revenue rising 49.8% year over year to $10.17 billion and EPS beating estimates, though operating income fell 17% as the company reinvested in expansion, creating margin concerns.

Perpetual Ltd lowered its stake in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 11.7% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 37,486 shares of the company's stock after selling 4,951 shares during the quarter. MercadoLibre comprises approximately 1.0% of Perpetual Ltd's investment portfolio, making the stock its 27th largest holding. Perpetual Ltd owned about 0.07% of MercadoLibre worth $64,796,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Purpose Unlimited Inc. acquired a new position in MercadoLibre during the 4th quarter valued at approximately $28,000. 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 stake in shares of MercadoLibre during the second quarter worth $31,000. Hanson & Doremus Investment Management purchased a new stake in shares of MercadoLibre during the first quarter valued at $35,000. Finally, Markowski Investments purchased a new stake in shares of MercadoLibre during the second quarter valued at $36,000. 87.62% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Susquehanna upped their target price on MercadoLibre to $2,400.00 and gave the company a "positive" rating in a research report on Tuesday, October 6th. Weiss Ratings restated a "hold (c)" rating on shares of MercadoLibre in a research note on Tuesday, September 29th. Citigroup reaffirmed a "neutral" rating on shares of MercadoLibre in a research report on Tuesday. BTIG Research reaffirmed a "buy" rating and set a $2,150.00 price target on shares of MercadoLibre in a research report 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 research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $2,245.62.

Key Stories Impacting MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: MercadoLibre’s integrated commerce and fintech model continues to gain traction. 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 investment analyses remain bullish, citing strong commerce and fintech growth, positive cash flow, a healthy balance sheet and potential catalysts including quick commerce, pharmacy, social commerce and further fintech expansion. Payment volume reportedly exceeded $100 billion, while Brazil’s large revenue contribution could benefit from easing inflation and interest rates. MercadoLibre: Making The Right Investment Moves, Near 13% FCF Yield MercadoLibre's Accelerated Ecosystem Growth At The Cost Of Margins
• Neutral Sentiment: Eagle Capital highlighted MercadoLibre as a structural, long-term opportunity, suggesting investors should focus on durable business fundamentals rather than short-term market volatility. This reinforces the long-term case but does not represent a new company-specific catalyst. MercadoLibre: Focusing on Structural Opportunity Over Short-Term Investment Noise
• Neutral Sentiment: Recent trading attention has increased as investors look ahead to earnings and the expansion of MercadoLibre’s cross-border logistics network. Short-term performance has improved, although longer-term returns and upcoming results remain important tests for the valuation. MercadoLibre: What Is Behind The Growing Attention Now?
• Negative Sentiment: MercadoLibre’s latest quarter showed a significant profitability trade-off: revenue and financial income increased about 50% to $10.17 billion, but operating income declined 17% to $683 million as management reinvested in growth. Investors may view the strategy as attractive for scale but concerning if margin pressure persists. MercadoLibre Trades Profit for Scale
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $2,300 to $2,200, signaling more cautious near-term expectations despite maintaining an “overweight” rating and implying substantial upside from recent trading levels. Cantor Fitzgerald Issues Pessimistic Forecast for MercadoLibre

MercadoLibre Trading Up 0.1%

NASDAQ MELI opened at $1,892.44 on Tuesday. The company has a market capitalization of $95.94 billion, a PE ratio of 51.47, a P/E/G ratio of 1.32 and a beta of 1.31. The company has a fifty day moving average of $1,864.26 and a 200 day moving average of $1,778.45. MercadoLibre, Inc. has a 1 year low of $1,495.00 and a 1 year high of $2,428.00. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.12 and a quick ratio of 1.10.

MercadoLibre (NASDAQ:MELI - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $9.19 EPS for the quarter, beating the consensus estimate of $8.65 by $0.54. The company had revenue of $10.17 billion for the quarter, compared to analyst estimates of $9.79 billion. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The firm's revenue was up 49.8% on a year-over-year basis. During the same period in the prior year, the company earned $10.31 earnings per share. Research analysts forecast that MercadoLibre, Inc. will post 38.29 earnings per share for the current year.

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.

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