WCM Investment Management LLC Sells 487,291 Shares of MercadoLibre, Inc. $MELI

Key Points

• WCM Investment Management nearly exited its MercadoLibre position in the first quarter, cutting its stake by 99.9% and selling 487,291 shares. It ended the period with just 270 shares valued at about $437,000.
• MercadoLibre reported mixed quarterly results, with earnings of $8.23 per share below estimates but revenue of $8.85 billion above expectations. Revenue rose 49% year over year, and analysts now expect about 41 EPS for the current fiscal year.
• Wall Street remains generally constructive on the stock, with a Moderate Buy consensus and an average price target of $2,258.67. Recent analyst moves included both target cuts and target increases, reflecting some caution despite continued growth prospects.

WCM Investment Management LLC cut its holdings in shares of MercadoLibre, Inc. (NASDAQ:MELI - Free Report) by 99.9% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 270 shares of the company's stock after selling 487,291 shares during the period. WCM Investment Management LLC's holdings in MercadoLibre were worth $437,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Dimensional Fund Advisors LP increased its holdings in MercadoLibre by 7.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 355 shares of the company's stock worth $614,000 after purchasing an additional 25 shares in the last quarter. Scarborough Advisors LLC lifted its holdings in shares of MercadoLibre by 33.3% in the first quarter. Scarborough Advisors LLC now owns 40 shares of the company's stock valued at $69,000 after purchasing an additional 10 shares in the last quarter. Parallel Advisors LLC lifted its holdings in shares of MercadoLibre by 15.3% in the first quarter. Parallel Advisors LLC now owns 1,562 shares of the company's stock valued at $2,701,000 after purchasing an additional 207 shares in the last quarter. SEB Asset Management AB purchased a new position in shares of MercadoLibre during the first quarter valued at approximately $162,578,000. Finally, Swiss National Bank boosted its position in shares of MercadoLibre by 7.1% during the first quarter. Swiss National Bank now owns 133,920 shares of the company's stock valued at $231,550,000 after buying an additional 8,890 shares during the last quarter. Institutional investors and hedge funds own 87.62% of the company's stock.

MercadoLibre Stock Performance

NASDAQ:MELI opened at $1,822.65 on Wednesday. The company has a market capitalization of $92.41 billion, a price-to-earnings ratio of 48.10, a PEG ratio of 1.13 and a beta of 1.35. The business has a 50 day moving average of $1,692.28 and a 200 day moving average of $1,818.66. 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, Inc. has a 1-year low of $1,495.00 and a 1-year high of $2,548.50.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $8.23 EPS for the quarter, missing analysts' consensus estimates of $8.75 by ($0.52). The business had revenue of $8.85 billion for 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 firm's revenue was up 49.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $9.74 earnings per share. On average, sell-side analysts predict that MercadoLibre, Inc. will post 41 earnings per share for the current fiscal year.

Insider Activity

In other MercadoLibre news, Director Alejandro Nicolas Aguzin bought 600 shares of MercadoLibre stock in a transaction that occurred on Friday, May 22nd. The shares were bought at an average price of $1,655.93 per share, with a total value of $993,558.00. Following the acquisition, the director owned 5,355 shares in the company, valued at approximately $8,867,505.15. This trade represents a 12.62% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.26% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on MELI shares. Benchmark reduced their target price on shares of MercadoLibre from $2,780.00 to $2,380.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Weiss Ratings reissued a "hold (c)" rating on shares of MercadoLibre in a research report on Thursday, July 2nd. Citigroup boosted their price target on shares of MercadoLibre from $1,950.00 to $2,000.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th. JPMorgan Chase & Co. reduced their price objective on shares of MercadoLibre from $2,100.00 to $1,900.00 and set a "neutral" rating for the company in a research report on Wednesday, May 13th. Finally, Cantor Fitzgerald decreased their price objective on shares of MercadoLibre from $2,400.00 to $2,350.00 and set an "overweight" rating for the company in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.