MercadoLibre, Inc. $MELI Stock Sold by Allspring Global Investments Holdings LLC

Key Points

• Allspring Global Investments cut its MercadoLibre stake by 28% in Q3, selling 20,925 shares and ending the period with 53,820 shares valued at about $90.7 million.
• Q3 revenue rose 45.1% year over year to $10.75 billion, exceeding estimates, but EPS of $8.83 missed the $9.27 consensus; shipping and expansion costs are weighing on profitability.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus rating and an average target price of $2,180, though several firms recently lowered their targets.

Allspring Global Investments Holdings LLC lessened its stake in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 28.0% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 53,820 shares of the company's stock after selling 20,925 shares during the period. Allspring Global Investments Holdings LLC owned approximately 0.11% of MercadoLibre worth $90,693,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the stock. CORDA Investment Management LLC. bought a new position in shares of MercadoLibre during the second quarter valued at about $1,241,000. Deutsche Bank AG purchased a new position in shares of MercadoLibre in the second quarter worth about $279,445,000. State Street Corp lifted its stake in shares of MercadoLibre by 7.7% in the 2nd quarter. State Street Corp now owns 459,748 shares of the company's stock valued at $780,372,000 after acquiring an additional 32,734 shares during the last quarter. Allianz Asset Management GmbH lifted its stake in shares of MercadoLibre by 72.5% in the 2nd quarter. Allianz Asset Management GmbH now owns 102,614 shares of the company's stock valued at $174,176,000 after acquiring an additional 43,130 shares during the last quarter. Finally, Nykredit A S bought a new stake in shares of MercadoLibre in the 2nd quarter valued at about $43,261,000. Institutional investors own 87.62% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently issued reports on MELI. Zacks Research upgraded MercadoLibre from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Cantor Fitzgerald lowered their price objective on MercadoLibre from $2,200.00 to $2,000.00 and set an "overweight" rating for the company in a research report on Thursday, November 5th. Susquehanna increased their price objective on MercadoLibre to $2,400.00 and gave the company a "positive" rating in a research note on Tuesday, October 6th. JPMorgan Chase & Co. cut their target price on MercadoLibre from $2,150.00 to $1,850.00 and set a "neutral" rating on the stock in a research note on Monday. Finally, BTIG Research reduced their price target on MercadoLibre from $2,150.00 to $2,050.00 and set a "buy" rating on the stock in a report on Thursday, November 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $2,180.00.

MercadoLibre News Summary

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

MercadoLibre Stock Performance

Shares of MELI opened at $1,532.68 on Tuesday. 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 $77.71 billion, a P/E ratio of 46.67, a P/E/G ratio of 1.22 and a beta of 1.42. The business's 50 day moving average price is $1,799.34 and its 200-day moving average price is $1,801.93. MercadoLibre, Inc. has a 52 week low of $1,469.01 and a 52 week high of $2,342.00.

MercadoLibre (NASDAQ:MELI - Get Free Report) last announced its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $10.69 billion. MercadoLibre had a net margin of 4.91% and a return on equity of 25.93%. The firm's quarterly revenue was up 45.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $8.32 EPS. Equities research analysts anticipate that MercadoLibre, Inc. will post 38.21 earnings per share for the current fiscal year.

About MercadoLibre

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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