Shares of MercadoLibre, Inc. (NASDAQ:MELI) experienced a significant increase of 9.7% during mid-day trading on Monday, reaching a peak of $2,168.14 before closing at $2,165.42. Approximately 377,128 shares changed hands, reflecting a 4% decline from its average daily volume of 391,419 shares. The stock had previously closed at $1,973.70, marking a notable rebound.
Analyst Ratings Overview
Analysts have been actively discussing MercadoLibre, with several recent reports influencing perceptions of the stock. Weiss Ratings reaffirmed a “buy (B-)” rating on October 31, 2023. Benchmark revised their price target from $2,875.00 to $2,780.00, maintaining a “buy” rating in a report dated October 30, 2023.
BTIG Research also reiterated a “buy” rating, setting a target price of $2,750.00 on December 4, 2023. Meanwhile, Morgan Stanley increased their price objective from $2,850.00 to $2,950.00, labeling the stock as “overweight” on November 3, 2023. In contrast, Wedbush lowered their target from $2,800.00 to $2,700.00 while keeping an “outperform” rating on December 19, 2023.
The current consensus indicates that one analyst rates the stock as a Strong Buy, while sixteen analysts have assigned a Buy rating. Two analysts suggest holding, and one recommends selling. According to data from MarketBeat.com, MercadoLibre currently holds a “Moderate Buy” average rating with a price target of $2,842.94.
Quarterly Earnings Report
On October 29, 2023, MercadoLibre announced its quarterly earnings, reporting earnings per share (EPS) at $8.32, which fell short of analysts’ consensus estimates of $9.88 by $1.56. The company achieved a return on equity of 39.03% and a net margin of 7.93%. Revenue for the quarter reached $7.41 billion, exceeding the expected $7.19 billion. This figure represents a robust 39.5% increase compared to the same period last year, where the EPS was reported at $7.83. Analysts predict that MercadoLibre, Inc. will achieve an EPS of 43.96 for the current fiscal year.
Insider transactions have also been notable. On December 12, 2023, Director Henrique Vasoncelos Dubugras sold 845 shares of the company at an average price of $2,028.14, totaling approximately $1,713,778.30. Additionally, Director Emiliano Calemzuk sold 45 shares on December 11, 2023, at an average price of $2,027.37, resulting in a transaction of $91,231.65. Following this sale, Calemzuk holds a total of 257 shares, valued at approximately $521,034.09. Over the past ninety days, insiders have sold a total of 1,136 shares worth $2,308,788, with corporate insiders owning 0.25% of the company’s stock.
Institutional investor activity has also played a role in MercadoLibre’s stock dynamics. Jackson Wealth Management LLC acquired a new stake valued at approximately $499,000 during the second quarter. Highview Capital Management LLC DE also purchased shares valued at around $559,000 during the same period. Notably, Ninety One North America Inc. increased its position by 21.5%, now holding 6,094 shares worth $15,927,000 after an additional purchase of 1,080 shares. Resona Asset Management Co. Ltd. expanded its stake by 4.0%, attaining 15,308 shares valued at $39,900,000. Finally, Jennison Associates LLC increased its holdings by 7.0%, owning 1,235,240 shares worth approximately $3,228,460,000.
Currently, institutional investors control 87.62% of MercadoLibre’s stock, highlighting strong interest in the company.
MercadoLibre operates a comprehensive e-commerce and fintech ecosystem, catering to both consumers and businesses throughout Latin America. The company has evolved from its marketplace roots to encompass a variety of digital commerce solutions, offering a platform that connects buyers and sellers alongside logistics and payment services. As the company continues to grow, its performance remains closely monitored by investors and analysts alike.
