MercadoLibre, Inc. $MELI Stock: Vestor Capital LLC Cuts Holdings

Key Points

• Vestor Capital cut its MercadoLibre stake by 7% in Q3, selling 3,650 shares and retaining 48,400 shares worth about $83.7 million; MELI represents 2.4% of its portfolio.
• MercadoLibre’s Q3 revenue rose 45.1% year over year to $10.75 billion, topping estimates, but EPS of $8.83 missed consensus of $9.27 as shipping costs and expansion spending weighed on profitability.
• Analysts’ consensus rating remains Moderate Buy, with an average price target of $2,180, though some firms have recently lowered their targets.

Vestor Capital LLC cut its stake in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 7.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 48,400 shares of the company's stock after selling 3,650 shares during the quarter. MercadoLibre accounts for 2.4% of Vestor Capital LLC's portfolio, making the stock its 11th largest holding. Vestor Capital LLC owned 0.10% of MercadoLibre worth $83,661,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of the stock. Y.D. More Investments Ltd lifted its holdings in shares of MercadoLibre by 24.0% during the first quarter. Y.D. More Investments Ltd now owns 31 shares of the company's stock valued at $53,000 after purchasing an additional 6 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its stake in MercadoLibre by 2.9% in the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 212 shares of the company's stock worth $367,000 after purchasing an additional 6 shares in the last quarter. Moody National Bank Trust Division increased its stake in MercadoLibre by 0.8% in the 2nd quarter. Moody National Bank Trust Division now owns 733 shares of the company's stock worth $1,244,000 after purchasing an additional 6 shares in the last quarter. Dynamic Advisor Solutions LLC raised its holdings in MercadoLibre by 0.5% during the 2nd quarter. Dynamic Advisor Solutions LLC now owns 1,227 shares of the company's stock worth $2,083,000 after buying an additional 6 shares during the period. Finally, Matrix Trust Co raised its holdings in MercadoLibre by 1.3% during the 3rd quarter. Matrix Trust Co now owns 458 shares of the company's stock worth $792,000 after buying an additional 6 shares during the period. 87.62% of the stock is currently owned by institutional investors and hedge funds.

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 Up 1.5%

MercadoLibre stock opened at $1,532.68 on Tuesday. The firm has a market cap of $77.71 billion, a PE ratio of 41.11, a P/E/G ratio of 1.22 and a beta of 1.42. 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 firm's 50 day moving average price is $1,799.34 and its two-hundred day moving average price is $1,801.93. MercadoLibre, Inc. has a twelve month low of $1,469.01 and a twelve month high of $2,342.00.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued 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). MercadoLibre had a net margin of 4.91% and a return on equity of 25.93%. The company had revenue of $10.75 billion for the quarter, compared to analyst estimates of $10.69 billion. During the same period last year, the business earned $8.32 EPS. The company's quarterly revenue was up 45.1% on a year-over-year basis. On average, research analysts predict that MercadoLibre, Inc. will post 38.21 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms have recently issued reports on MELI. New Street Research initiated coverage on MercadoLibre in a report on Wednesday, September 23rd. They issued a "buy" rating and a $2,450.00 target price for the company. Susquehanna lifted their price target on MercadoLibre to $2,400.00 and gave the company a "positive" rating in a report on Tuesday, October 6th. Scotiabank lowered their price target on MercadoLibre from $2,800.00 to $2,300.00 and set a "sector outperform" rating on the stock in a report on Thursday, November 5th. Zacks Research raised MercadoLibre from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Finally, Citigroup raised MercadoLibre from a "neutral" rating to a "buy" rating and reduced their price objective for the stock from $2,100.00 to $2,050.00 in a research note on Tuesday, October 27th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, MercadoLibre currently has a consensus rating of "Moderate Buy" and an average price target of $2,180.00.

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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