Pacer Advisors Inc. Reduces Stake in MercadoLibre, Inc. $MELI

Key Points

• Pacer Advisors cut its MercadoLibre stake by 52.3% in the first quarter, selling 1,947 shares and retaining 1,778 shares valued at approximately $3.07 million. Institutional investors still own 87.62% of the company.
• MercadoLibre reported strong quarterly growth, with revenue rising 49.8% year over year to $10.17 billion and EPS of $9.19, both exceeding analyst expectations. However, EPS declined from $10.31 a year earlier, while margin pressure and increased credit risk remain concerns.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and six Holds producing a Moderate Buy consensus and an average price target of $2,255.33.

Pacer Advisors Inc. reduced its holdings in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 52.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,778 shares of the company's stock after selling 1,947 shares during the period. Pacer Advisors Inc.'s holdings in MercadoLibre were worth $3,074,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Laurel Wealth Advisors LLC purchased a new stake in MercadoLibre in the fourth quarter valued at $26,000. Transamerica Financial Advisors LLC purchased a new position in shares of MercadoLibre during the 4th quarter valued at about $26,000. Purpose Unlimited Inc. purchased a new position in shares of MercadoLibre during the 4th quarter valued at about $28,000. Darwin Wealth Management LLC acquired a new position in shares of MercadoLibre in the 2nd quarter valued at about $29,000. Finally, Curio Wealth LLC acquired a new position in shares of MercadoLibre in the 4th quarter valued at about $30,000. Institutional investors and hedge funds own 87.62% of the company's stock.

MercadoLibre Stock Performance

NASDAQ MELI opened at $1,830.00 on Friday. The stock has a market capitalization of $92.78 billion, a price-to-earnings ratio of 49.77, a PEG ratio of 1.18 and a beta of 1.34. MercadoLibre, Inc. has a twelve month low of $1,495.00 and a twelve month high of $2,548.50. The company has a current ratio of 1.16, a quick ratio of 1.14 and a debt-to-equity ratio of 0.63. The stock has a 50-day moving average of $1,745.36 and a 200 day moving average of $1,796.86.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. 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 return on equity of 27.60% and a net margin of 5.30%.MercadoLibre's quarterly revenue was up 49.8% compared to the same quarter last year. During the same period last year, the company earned $10.31 earnings per share. Sell-side analysts anticipate that MercadoLibre, Inc. will post 41 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

MELI has been the topic of several analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of MercadoLibre in a report on Thursday, July 2nd. Barclays decreased their price target on MercadoLibre from $2,500.00 to $2,300.00 and set an "overweight" rating for the company in a report on Monday, May 11th. Scotiabank dropped their price objective on shares of MercadoLibre from $3,500.00 to $2,800.00 and set a "sector outperform" rating on the stock in a research note on Thursday, May 7th. JPMorgan Chase & Co. cut their target price on shares of MercadoLibre from $2,100.00 to $1,900.00 and set a "neutral" rating for the company in a report on Wednesday, May 13th. Finally, BTIG Research reiterated a "buy" rating and issued a $2,150.00 target price on shares of MercadoLibre in a research note on Thursday. Eleven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, MercadoLibre has a consensus rating of "Moderate Buy" and a consensus target price of $2,255.33.

Insider Activity

In other MercadoLibre news, Director Alejandro Nicolas Aguzin bought 600 shares of the firm's stock in a transaction dated Friday, May 22nd. The shares were purchased at an average price of $1,655.93 per share, for a total transaction of $993,558.00. Following the transaction, the director directly owned 5,355 shares of the company's stock, valued at approximately $8,867,505.15. This represents a 12.62% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.26% of the stock is owned by company insiders.

MercadoLibre News Roundup

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Q2 revenue rose 49.8% year over year to $10.17 billion, exceeding the $9.79 billion consensus estimate, while GAAP EPS of $9.19 also topped expectations. The quarter marked MercadoLibre’s first time surpassing $10 billion in quarterly revenue. Mercado Libre Q2 2026 Revenue Surpasses $10 Billion
• Positive Sentiment: Commerce and fintech engagement continued to strengthen. Lowering Brazil’s free-shipping threshold reportedly converted more monthly shoppers into daily active users, while advertising revenue climbed 73%, supporting customer acquisition and expansion into lower-income markets. Mercado Libre Free Shipping Converts Monthly Shoppers Into Daily Active Users
• Positive Sentiment: Analysts remained constructive: Cantor Fitzgerald raised its price target to $2,300 and maintained an overweight rating, while BTIG reaffirmed its buy rating with a $2,150 target.
• Neutral Sentiment: Management is prioritizing ecosystem scale and user engagement over near-term profitability, investing in free shipping, first-party inventory, credit, card issuance and artificial intelligence. The strategy could deepen MercadoLibre’s competitive moat, but its payoff depends on sustained future growth. MercadoLibre Q2 Earnings Call Focuses on Engagement Over Margin
• Negative Sentiment: Investors focused on profitability concerns: operating margin was 6.7%, and net margin was 4.6%, with reports citing roughly 550 basis points of margin contraction. Strategic spending is also pressuring cash flow, while the expanding credit portfolio brings exposure to rising nonperforming loans and regional economic headwinds.
• Negative Sentiment: Although EPS beat estimates, it declined from $10.31 a year earlier. The combination of margin compression, increased credit risk and a premium valuation has outweighed the otherwise impressive revenue growth, contributing to the stock’s decrease.

MercadoLibre Company Profile

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

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