MercadoLibre (NASDAQ:MELI) Posts Earnings Results, Misses Estimates By $1.70 EPS

Key Points

• MercadoLibre reported earnings of $10.31 per share for the quarter, falling short of the consensus estimate of $12.01 by $1.70.
• The company's stock closed at $2,395.83, with analysts maintaining a generally positive outlook, reflected in its average rating of "Moderate Buy" and a consensus price target of $2,707.50.
• Approximately 87.62% of MercadoLibre's shares are held by hedge funds and institutional investors, indicating strong institutional interest in the stock.

MercadoLibre (NASDAQ:MELI - Get Free Report) posted its quarterly earnings data on Monday. The company reported $10.31 earnings per share (EPS) for the quarter, missing the consensus estimate of $12.01 by ($1.70), Zacks reports. MercadoLibre had a net margin of 9.21% and a return on equity of 48.46%.

MercadoLibre Stock Performance

MELI traded up $19.91 during trading on Monday, reaching $2,395.83. The company's stock had a trading volume of 557,159 shares, compared to its average volume of 390,466. MercadoLibre has a 52-week low of $1,646.00 and a 52-week high of $2,645.22. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.18 and a current ratio of 1.20. The company's fifty day moving average price is $2,455.84 and its 200-day moving average price is $2,229.19. The company has a market capitalization of $121.47 billion, a price-to-earnings ratio of 58.92, a price-to-earnings-growth ratio of 1.41 and a beta of 1.46.

Wall Street Analysts Forecast Growth

MELI has been the subject of a number of recent analyst reports. Morgan Stanley reissued an "overweight" rating on shares of MercadoLibre in a research report on Thursday, May 1st. Wall Street Zen cut shares of MercadoLibre from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. The Goldman Sachs Group lifted their price objective on MercadoLibre from $2,640.00 to $3,000.00 and gave the stock a "buy" rating in a report on Wednesday, May 14th. JPMorgan Chase & Co. raised their target price on shares of MercadoLibre from $2,250.00 to $2,600.00 and gave the stock a "neutral" rating in a research report on Thursday, May 22nd. Finally, Citigroup reiterated a "buy" rating on shares of MercadoLibre in a research note on Friday, June 6th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $2,707.50.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in MELI. Focus Partners Wealth lifted its stake in MercadoLibre by 42.0% in the first quarter. Focus Partners Wealth now owns 602 shares of the company's stock valued at $1,176,000 after buying an additional 178 shares during the last quarter. Empowered Funds LLC grew its position in MercadoLibre by 6.9% in the first quarter. Empowered Funds LLC now owns 760 shares of the company's stock worth $1,483,000 after buying an additional 49 shares during the last quarter. Finally, Bison Wealth LLC purchased a new stake in MercadoLibre during the fourth quarter valued at about $206,000. 87.62% of the stock is owned by hedge funds and other institutional investors.

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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