MercadoLibre, Inc. $MELI Stock: RWC Asset Management LLP Grows Stake

Key Points

• RWC Asset Management increased its MercadoLibre stake by 38.7% in the third quarter, bringing its holdings to 15,264 shares valued at approximately $26.4 million. Institutional investors collectively own 87.62% of the company.
• MercadoLibre’s latest quarterly results exceeded expectations, with EPS of $9.19 versus the $8.65 estimate and revenue of $10.17 billion, up 49.8% year over year.
• MELI shares fell 0.8% to $1,810.15, while analysts maintained a generally positive outlook: 12 rated the stock Buy and six rated it Hold, producing a “Moderate Buy” consensus and an average price target of $2,251.88.

RWC Asset Management LLP grew its stake in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 38.7% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 15,264 shares of the company's stock after purchasing an additional 4,255 shares during the quarter. MercadoLibre makes up approximately 1.0% of RWC Asset Management LLP's investment portfolio, making the stock its 25th largest position. RWC Asset Management LLP's holdings in MercadoLibre were worth $26,384,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of MercadoLibre in the second quarter valued at approximately $2,246,015,000. Janus Henderson Group PLC raised its holdings in shares of MercadoLibre by 1.7% in the first quarter. Janus Henderson Group PLC now owns 614,238 shares of the company's stock valued at $1,062,019,000 after acquiring an additional 10,142 shares in the last quarter. Linonia Partnership LP raised its holdings in shares of MercadoLibre by 325.1% in the second quarter. Linonia Partnership LP now owns 553,788 shares of the company's stock valued at $939,994,000 after acquiring an additional 423,527 shares in the last quarter. Jupiter Topco LLC purchased a new stake in MercadoLibre in the second quarter worth about $917,123,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in MercadoLibre by 7.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 533,816 shares of the company's stock worth $906,094,000 after acquiring an additional 38,871 shares during the period. 87.62% of the stock is currently owned by institutional investors.

MercadoLibre Stock Down 0.8%

MELI stock traded down $14.80 during trading on Friday, reaching $1,810.15. 382,489 shares of the company traded hands, compared to its average volume of 482,945. The business has a 50 day simple moving average of $1,862.02 and a 200 day simple moving average of $1,788.72. MercadoLibre, Inc. has a 12 month low of $1,495.00 and a 12 month high of $2,428.00. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.12. The company has a market capitalization of $91.77 billion, a price-to-earnings ratio of 49.23, a price-to-earnings-growth ratio of 1.28 and a beta of 1.31.

MercadoLibre (NASDAQ:MELI - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $9.19 EPS for the quarter, topping analysts' consensus estimates of $8.65 by $0.54. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The business had revenue of $10.17 billion during the quarter, compared to the consensus estimate of $9.79 billion. During the same period in the previous year, the company posted $10.31 earnings per share. The firm's revenue was up 49.8% on a year-over-year basis. On average, equities research analysts anticipate that MercadoLibre, Inc. will post 38.09 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts have commented on MELI shares. Zacks Research raised shares of MercadoLibre from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. New Street Research began coverage on shares of MercadoLibre in a research report on Wednesday, September 23rd. They issued a "buy" rating and a $2,450.00 price target for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of MercadoLibre in a research note on Tuesday, September 29th. Susquehanna lifted their price objective on shares of MercadoLibre to $2,400.00 and gave the company a "positive" rating in a report on Tuesday, October 6th. Finally, BTIG Research reissued a "buy" rating and issued a $2,150.00 price objective on shares of MercadoLibre in a research note on Thursday, September 3rd. Twelve equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $2,251.88.

MercadoLibre Company Profile

MercadoLibre, Inc is a technology company that operates an online commerce and financial services ecosystem across Latin America. Founded in 1999 by Marcos Galperin, the company initially developed an online marketplace and has expanded into a broad platform connecting buyers and sellers with businesses and consumers.

Its commerce operations include the MercadoLibre marketplace, where users can purchase and sell products across numerous categories. The company also offers supporting services such as Mercado Envíos for shipping and logistics, Mercado Ads for digital advertising, and tools for merchants to manage their online businesses.

MercadoLibre's financial technology business is centered on Mercado Pago, which provides digital payment processing, online checkout, money transfer and account services.

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