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

Key Points

• MercadoLibre hit a new 52-week low after BTIG cut its price target from $2,650 to $2,400 (while keeping a Buy rating); shares dropped as low as $1,631.18 and last traded around $1,665 on elevated volume.
• Despite recent target reductions from several firms, the consensus remains a “Moderate Buy” with an average price target near $2,708.67 and most analysts still rating the stock Buy or better.
• In the latest quarter MercadoLibre beat revenue expectations with 44.6% year-over-year growth to $8.76 billion but missed on EPS ($11.03 vs. $11.66 expected), signaling top-line strength alongside earnings pressure.

MercadoLibre, Inc. (NASDAQ:MELI - Get Free Report)'s stock price reached a new 52-week low during trading on Friday after BTIG Research lowered their price target on the stock from $2,650.00 to $2,400.00. BTIG Research currently has a buy rating on the stock. MercadoLibre traded as low as $1,631.18 and last traded at $1,665.0560, with a volume of 110667 shares traded. The stock had previously closed at $1,666.93.

Other analysts have also issued research reports about the stock. Dbs Bank upgraded shares of MercadoLibre from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, December 2nd. Zacks Research upgraded shares of MercadoLibre from a "strong sell" rating to a "hold" rating in a report on Friday, February 6th. Barclays dropped their target price on shares of MercadoLibre from $2,900.00 to $2,600.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 25th. Morgan Stanley decreased their price target on shares of MercadoLibre from $2,800.00 to $2,600.00 and set an "overweight" rating for the company in a research note on Monday, March 9th. Finally, Wedbush dropped their price target on MercadoLibre from $2,600.00 to $2,400.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 25th. One equities research 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. According to data from MarketBeat.com, MercadoLibre has an average rating of "Moderate Buy" and a consensus target price of $2,708.67.

Institutional Investors Weigh In On MercadoLibre

A number of hedge funds have recently made changes to their positions in MELI. Darwin Wealth Management LLC purchased a new position in shares of MercadoLibre during the second quarter valued at approximately $29,000. Laurel Wealth Advisors LLC purchased a new position in shares of MercadoLibre in the 4th quarter valued at approximately $26,000. Transamerica Financial Advisors LLC purchased a new position in MercadoLibre during the fourth quarter valued at $26,000. Steigerwald Gordon & Koch Inc. bought a new position in shares of MercadoLibre in the 3rd quarter worth about $35,000. Finally, Curio Wealth LLC purchased a new position in shares of MercadoLibre during the fourth quarter valued at approximately $30,000. 87.62% of the stock is currently owned by institutional investors.

MercadoLibre Stock Performance

The business has a 50-day moving average price of $1,959.01 and a 200 day moving average price of $2,099.04. The stock has a market capitalization of $84.50 billion, a P/E ratio of 42.22, a PEG ratio of 0.83 and a beta of 1.48. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.15 and a current ratio of 1.17.

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

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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