MercadoLibre (NASDAQ:MELI) Trading Down 5.1% - What's Next?

Key Points

• MercadoLibre's stock (NASDAQ:MELI) dropped by 5.1% during trading, closing at $2,373.71 with an average daily volume decline of 82% compared to previous trading days.
• Despite the drop, several analysts maintain a strong outlook with price targets ranging from $2,700 to $3,000 and a consensus rating of "Moderate Buy."
• The company reported quarterly earnings per share (EPS) of $10.31, missing analysts' expectations, but achieved a significant revenue increase of 33.8% year-over-year.

Shares of MercadoLibre, Inc. (NASDAQ:MELI - Get Free Report) were down 5.1% during trading on Tuesday . The stock traded as low as $2,410.00 and last traded at $2,373.71. Approximately 71,230 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 385,851 shares. The stock had previously closed at $2,501.31.

Analyst Upgrades and Downgrades

Several research firms have commented on MELI. UBS Group set a $3,000.00 price target on shares of MercadoLibre in a report on Monday, June 2nd. Susquehanna reaffirmed a "positive" rating and set a $2,975.00 price target (up from $2,840.00) on shares of MercadoLibre in a research report on Thursday, June 26th. JPMorgan Chase & Co. lifted their price target on MercadoLibre from $2,600.00 to $2,700.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Citigroup reduced their price target on MercadoLibre from $2,900.00 to $2,850.00 and set a "buy" rating for the company in a research report on Monday, August 18th. Finally, Wall Street Zen cut MercadoLibre from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $2,828.33.

MercadoLibre Price Performance

The firm has a market capitalization of $119.78 billion, a PE ratio of 58.46, a PEG ratio of 1.61 and a beta of 1.49. The stock has a 50-day moving average price of $2,394.29 and a 200 day moving average price of $2,340.65. The company has a quick ratio of 1.18, a current ratio of 1.20 and a debt-to-equity ratio of 0.61.

MercadoLibre (NASDAQ:MELI - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The company reported $10.31 EPS for the quarter, missing analysts' consensus estimates of $12.01 by ($1.70). The business had revenue of $6.79 billion during the quarter, compared to analysts' expectations of $6.57 billion. MercadoLibre had a net margin of 8.52% and a return on equity of 43.06%. The firm's quarterly revenue was up 33.8% compared to the same quarter last year. During the same quarter last year, the firm earned $10.48 earnings per share. Equities analysts forecast that MercadoLibre, Inc. will post 43.96 EPS for the current fiscal year.

Institutional Trading of MercadoLibre

A number of institutional investors and hedge funds have recently made changes to their positions in MELI. Optimize Financial Inc raised its holdings in shares of MercadoLibre by 1.7% in the 1st quarter. Optimize Financial Inc now owns 238 shares of the company's stock valued at $464,000 after purchasing an additional 4 shares during the period. Sonora Investment Management Group LLC raised its holdings in MercadoLibre by 3.1% in the 1st quarter. Sonora Investment Management Group LLC now owns 168 shares of the company's stock valued at $328,000 after acquiring an additional 5 shares during the period. Beacon Capital Management LLC raised its holdings in MercadoLibre by 8.3% in the 1st quarter. Beacon Capital Management LLC now owns 65 shares of the company's stock valued at $127,000 after acquiring an additional 5 shares during the period. Range Financial Group LLC raised its holdings in MercadoLibre by 2.7% in the 2nd quarter. Range Financial Group LLC now owns 188 shares of the company's stock valued at $491,000 after acquiring an additional 5 shares during the period. Finally, E Fund Management Hong Kong Co. Ltd. raised its holdings in MercadoLibre by 26.3% in the 2nd quarter. E Fund Management Hong Kong Co. Ltd. now owns 24 shares of the company's stock valued at $63,000 after acquiring an additional 5 shares during the period. 87.62% of the stock is currently owned by hedge funds and other institutional investors.

About MercadoLibre

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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