MercadoLibre (NASDAQ:MELI) Hits New 1-Year Low - What's Next?

Key Points

• Shares hit a new 52-week low, trading as low as $1,593.60 and last at $1,606.92 (down ~1.7%), and are trading well below their 50‑day (~$1,910.64) and 200‑day (~$2,072.11) moving averages.
• Analyst sentiment is mixed: JPMorgan downgraded MELI to neutral and cut its target to $2,100 while UBS trimmed its target to $2,700, yet the consensus is a Moderate Buy with a $2,708.67 average price target — far above the current price.
• Q4 results showed a miss on EPS ($11.03 vs. $11.66 expected) but strong revenue growth ( $8.76B, +44.6% YoY), with a net margin of 6.91% and ROE of 33.73%.

Shares of MercadoLibre, Inc. (NASDAQ:MELI - Get Free Report) hit a new 52-week low during trading on Friday . The company traded as low as $1,593.60 and last traded at $1,606.9150, with a volume of 133460 shares trading hands. The stock had previously closed at $1,630.99.

Wall Street Analyst Weigh In

MELI has been the topic of a number of research analyst reports. JPMorgan Chase & Co. lowered MercadoLibre from an "overweight" rating to a "neutral" rating and dropped their price target for the stock from $2,650.00 to $2,100.00 in a research report on Thursday, March 12th. UBS Group reduced their price objective on shares of MercadoLibre from $2,900.00 to $2,700.00 and set a "buy" rating for the company in a research note on Friday, February 27th. Itau BBA Securities reissued an "outperform" rating on shares of MercadoLibre in a research note on Wednesday, February 25th. Dbs Bank upgraded MercadoLibre from a "hold" rating to a "moderate buy" rating in a report on Tuesday, December 2nd. Finally, Zacks Research upgraded shares of MercadoLibre from a "strong sell" rating to a "hold" rating in a report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $2,708.67.

MercadoLibre Trading Down 1.7%

The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.15 and a current ratio of 1.17. The company has a market capitalization of $81.27 billion, a price-to-earnings ratio of 40.61, a price-to-earnings-growth ratio of 0.83 and a beta of 1.48. The firm has a fifty day moving average price of $1,910.64 and a 200-day moving average price of $2,072.11.

MercadoLibre (NASDAQ:MELI - Get Free Report) last issued its earnings results on Tuesday, February 24th. The company reported $11.03 EPS for the quarter, missing the consensus estimate of $11.66 by ($0.63). MercadoLibre had a net margin of 6.91% and a return on equity of 33.73%. The firm had revenue of $8.76 billion during the quarter, compared to analyst estimates of $8.45 billion. During the same quarter in the previous year, the firm posted $12.61 earnings per share. MercadoLibre's quarterly revenue was up 44.6% compared to the same quarter last year. As a group, equities analysts anticipate that MercadoLibre, Inc. will post 43.96 EPS for the current year.

Hedge Funds Weigh In On MercadoLibre

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Galaxy Digital Capital Management GP LLC bought a new position in shares of MercadoLibre in the 4th quarter valued at $1,571,000. J. Derek Lewis & Associates Inc. acquired a new position in shares of MercadoLibre in the fourth quarter worth approximately $222,000. Purpose Unlimited Inc. bought a new stake in shares of MercadoLibre in the 4th quarter valued at $28,000. Cornerstone Planning LLC bought a new stake in MercadoLibre during the fourth quarter valued at $272,000. Finally, Osbon Capital Management LLC bought a new stake in shares of MercadoLibre during the 4th quarter valued at about $97,000. Institutional investors own 87.62% of the company's stock.

About MercadoLibre

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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