Rheos Capital Works Inc. Makes New Investment in MercadoLibre, Inc. $MELI

Key Points

• Rheos Capital Works Inc. invested approximately $13,068,000 in MercadoLibre, acquiring 5,000 shares during the second quarter of 2023.
• MercadoLibre reported a 43.06% return on equity with a net margin of 8.52%, despite missing earnings expectations with an EPS of $10.31.
• Analysts have set a target price for MercadoLibre, with Daiwa Capital Markets initiating coverage with a $3,000 target, while consensus estimates give an average target of around $2,810.88.

Rheos Capital Works Inc. bought a new position in MercadoLibre, Inc. (NASDAQ:MELI - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 5,000 shares of the company's stock, valued at approximately $13,068,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Key Financial Inc bought a new stake in shares of MercadoLibre in the 1st quarter worth about $25,000. GW&K Investment Management LLC bought a new stake in MercadoLibre during the first quarter worth approximately $25,000. Close Asset Management Ltd increased its stake in MercadoLibre by 366.7% during the first quarter. Close Asset Management Ltd now owns 14 shares of the company's stock worth $27,000 after acquiring an additional 11 shares during the last quarter. Brooklyn Investment Group raised its position in MercadoLibre by 650.0% during the first quarter. Brooklyn Investment Group now owns 15 shares of the company's stock valued at $29,000 after purchasing an additional 13 shares during the period. Finally, Twin Tree Management LP bought a new stake in shares of MercadoLibre in the 1st quarter valued at approximately $29,000. 87.62% of the stock is currently owned by institutional investors.

MercadoLibre Stock Down 0.8%

Shares of MELI opened at $2,157.82 on Wednesday. The firm has a fifty day moving average price of $2,354.09 and a 200-day moving average price of $2,347.41. The company has a current ratio of 1.20, a quick ratio of 1.18 and a debt-to-equity ratio of 0.61. The firm has a market capitalization of $109.40 billion, a P/E ratio of 53.29, a P/E/G ratio of 1.45 and a beta of 1.46. MercadoLibre, Inc. has a 12-month low of $1,646.00 and a 12-month high of $2,645.22.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its earnings results on Monday, August 4th. The company reported $10.31 EPS for the quarter, missing analysts' consensus estimates of $12.01 by ($1.70). The company had revenue of $6.79 billion during the quarter, compared to the consensus estimate of $6.57 billion. MercadoLibre had a return on equity of 43.06% and a net margin of 8.52%.MercadoLibre's revenue was up 33.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $10.48 earnings per share. Equities research analysts expect that MercadoLibre, Inc. will post 43.96 earnings per share for the current year.

Analysts Set New Price Targets

MELI has been the topic of several analyst reports. Daiwa Capital Markets initiated coverage on MercadoLibre in a research report on Friday, August 1st. They set a "buy" rating and a $3,000.00 target price on the stock. Cantor Fitzgerald lifted their price objective on shares of MercadoLibre from $2,700.00 to $2,900.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 24th. Benchmark reiterated a "buy" rating and set a $2,875.00 price objective on shares of MercadoLibre in a research report on Tuesday, August 5th. Weiss Ratings restated a "buy (b)" rating on shares of MercadoLibre in a report on Wednesday, October 8th. Finally, Wall Street Zen cut shares of MercadoLibre from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $2,810.88.

MercadoLibre Company Profile

MercadoLibre, Inc operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps.

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