MercadoLibre (NASDAQ:MELI) Reaches New 12-Month Low on Analyst Downgrade

Key Points

• MercadoLibre hit a new 52-week low after Benchmark cut its price target from $2,780 to $2,380, even while keeping a buy rating. The stock traded as low as $1,591.15.
• Other analysts also trimmed their outlooks, including Wedbush, Scotiabank, Cantor Fitzgerald, Barclays, and Daiwa Securities, contributing to a consensus rating of Moderate Buy with a $2,452 average target price.
• The company recently reported mixed quarterly results: revenue rose 49% year over year to $8.85 billion, but earnings per share came in below estimates at $8.23 versus $8.75 expected.

Shares of MercadoLibre, Inc. (NASDAQ:MELI - Get Free Report) hit a new 52-week low during trading on Monday after Benchmark lowered their price target on the stock from $2,780.00 to $2,380.00. Benchmark currently has a buy rating on the stock. MercadoLibre traded as low as $1,591.15 and last traded at $1,564.3970, with a volume of 197256 shares trading hands. The stock had previously closed at $1,632.52.

Several other equities analysts have also recently weighed in on MELI. Wedbush cut their target price on shares of MercadoLibre from $2,600.00 to $2,400.00 and set an "outperform" rating for the company in a research note on Wednesday, February 25th. Scotiabank cut their target price on shares of MercadoLibre from $3,500.00 to $2,800.00 and set a "sector outperform" rating for the company in a research note on Thursday. Cantor Fitzgerald cut their target price 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. Daiwa Securities Group cut shares of MercadoLibre from a "buy" rating to a "hold" rating and set a $1,800.00 target price for the company. in a research note on Friday. Finally, Barclays cut their target price on shares of MercadoLibre from $2,600.00 to $2,500.00 and set an "overweight" rating for the company in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $2,452.00.

Hedge Funds Weigh In On MercadoLibre

A number of institutional investors and hedge funds have recently made changes to their positions in MELI. Capital Research Global Investors grew its stake in shares of MercadoLibre by 22.5% in the 4th quarter. Capital Research Global Investors now owns 2,225,031 shares of the company's stock worth $4,481,812,000 after buying an additional 408,939 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in shares of MercadoLibre by 803.4% during the 4th quarter. Assenagon Asset Management S.A. now owns 333,455 shares of the company's stock worth $671,665,000 after purchasing an additional 296,543 shares during the period. Norges Bank purchased a new position in shares of MercadoLibre during the 4th quarter worth about $597,045,000. Marshall Wace LLP boosted its stake in shares of MercadoLibre by 184.8% during the 4th quarter. Marshall Wace LLP now owns 311,818 shares of the company's stock worth $628,083,000 after purchasing an additional 202,322 shares during the period. Finally, Flossbach Von Storch SE boosted its stake in shares of MercadoLibre by 1,669.4% during the 3rd quarter. Flossbach Von Storch SE now owns 181,719 shares of the company's stock worth $424,666,000 after purchasing an additional 171,449 shares during the period. 87.62% of the stock is owned by hedge funds and other institutional investors.

MercadoLibre Stock Performance

The company has a current ratio of 1.17, a quick ratio of 1.15 and a debt-to-equity ratio of 0.68. The business's 50 day moving average is $1,755.81 and its 200 day moving average is $1,967.33. The stock has a market capitalization of $80.07 billion, a PE ratio of 41.74, a PEG ratio of 0.83 and a beta of 1.41.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released 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). MercadoLibre had a return on equity of 30.84% and a net margin of 6.04%.The firm had revenue of $8.85 billion for the quarter, compared to analysts' expectations of $8.29 billion. During the same period in the prior year, the firm posted $9.74 earnings per share. MercadoLibre's revenue for the quarter was up 49.0% on a year-over-year basis. On average, equities research analysts predict that MercadoLibre, Inc. will post 47.84 earnings per share for the current fiscal year.

MercadoLibre Company 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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