Principal Financial Group Inc. Acquires 1,384 Shares of MercadoLibre, Inc. $MELI

Key Points

• Principal Financial Group increased its stake in MercadoLibre by 2.5% in the first quarter, buying 1,384 additional shares and bringing its total holding to 56,021 shares worth about $96.9 million.
• MercadoLibre’s stock was down 1.7% in the session cited, with shares opening at $1,842.50 and the company carrying a market cap of about $93.4 billion.
• The company’s latest earnings showed strong revenue growth of 49% year over year to $8.85 billion, but EPS of $8.23 missed analyst expectations; analysts still mostly rate the stock a Moderate Buy with a consensus target price of $2,258.67.

Principal Financial Group Inc. lifted its stake in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 2.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 56,021 shares of the company's stock after acquiring an additional 1,384 shares during the period. Principal Financial Group Inc. owned approximately 0.11% of MercadoLibre worth $96,861,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of the stock. Capital Research Global Investors increased its holdings in shares of MercadoLibre by 22.5% during the 4th quarter. Capital Research Global Investors now owns 2,225,031 shares of the company's stock worth $4,481,812,000 after purchasing an additional 408,939 shares during the period. Assenagon Asset Management S.A. grew its position in MercadoLibre by 803.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 333,455 shares of the company's stock worth $671,665,000 after buying an additional 296,543 shares in the last quarter. Norges Bank bought a new position in MercadoLibre during the fourth quarter valued at about $597,045,000. Marshall Wace LLP raised its holdings in MercadoLibre by 184.8% in the 4th quarter. Marshall Wace LLP now owns 311,818 shares of the company's stock valued at $628,083,000 after acquiring an additional 202,322 shares in the last quarter. Finally, Baillie Gifford & Co. lifted its position in shares of MercadoLibre by 4.9% in the 4th quarter. Baillie Gifford & Co. now owns 3,481,563 shares of the company's stock worth $7,012,773,000 after acquiring an additional 164,120 shares during the period. 87.62% of the stock is currently owned by institutional investors and hedge funds.

MercadoLibre Stock Down 1.7%

Shares of MELI opened at $1,842.50 on Thursday. The company has a market capitalization of $93.41 billion, a P/E ratio of 48.63, a PEG ratio of 1.15 and a beta of 1.35. MercadoLibre, Inc. has a one year low of $1,495.00 and a one year high of $2,548.50. The business's 50 day simple moving average is $1,678.53 and its 200-day simple moving average is $1,823.79. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.16 and a quick ratio of 1.14.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $8.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.75 by ($0.52). The business had revenue of $8.85 billion during the quarter, compared to the consensus estimate of $8.29 billion. MercadoLibre had a net margin of 6.04% and a return on equity of 29.58%. The company's revenue for the quarter was up 49.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $9.74 EPS. As a group, sell-side analysts predict that MercadoLibre, Inc. will post 41 EPS for the current fiscal year.

MercadoLibre News Summary

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Analyst chatter remains constructive overall, with Zacks noting MercadoLibre was upgraded from “strong sell” to “hold,” and other reports highlighting a favorable average brokerage rating and continued solid credit performance in Mercado Pago Brazil. Article Title
• Positive Sentiment: MercadoLibre is being viewed as a promising fintech and e-commerce growth story, with recent commentary citing strong engagement, cross-border trade growth, and improving scale across Latin America. Article Title
• Neutral Sentiment: The company released investor-relations podcast content focused on Mercado Pago Brazil, credit quality, and growth opportunities, which helps reinforce management’s long-term strategy but does not appear to be a major new catalyst. Article Title
• Neutral Sentiment: Several articles frame MELI as potentially attractive on valuation after a pullback, but these are largely opinion pieces rather than direct new business updates. Article Title
• Negative Sentiment: Bearish pressure comes from reports emphasizing MercadoLibre’s heavy spending on free shipping, fulfillment, and credit-card growth, which may keep margins under pressure in the near term even as revenue growth stays strong. Article Title

Insider Transactions at MercadoLibre

In related news, Director Alejandro Nicolas Aguzin acquired 600 shares of the firm's stock in a transaction on Friday, May 22nd. The shares were purchased at an average price of $1,655.93 per share, with a total value of $993,558.00. Following the acquisition, the director directly owned 5,355 shares in the company, valued at $8,867,505.15. The trade was a 12.62% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. 0.26% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. JPMorgan Chase & Co. cut their target price on MercadoLibre from $2,100.00 to $1,900.00 and set a "neutral" rating for the company in a research note on Wednesday, May 13th. The Goldman Sachs Group set a $2,100.00 price objective on shares of MercadoLibre in a research note on Wednesday, May 13th. Scotiabank decreased their target price on shares of MercadoLibre from $3,500.00 to $2,800.00 and set a "sector outperform" rating on the stock in a research report on Thursday, May 7th. Benchmark dropped their price target on shares of MercadoLibre from $2,780.00 to $2,380.00 and set a "buy" rating for the company in a research report on Friday, May 8th. Finally, Morgan Stanley decreased their price objective on MercadoLibre from $2,600.00 to $2,450.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $2,258.67.

MercadoLibre 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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