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

MercadoLibre, Inc. (NASDAQ:MELI) hit a new 52-week low on Wednesday after UBS Group lowered their price target on the stock from $1,750.00 to $1,600.00. UBS Group currently has a neutral rating on the stock. MercadoLibre traded as low as $1,465.06 and last traded at $1,482.7180, with a volume of 72,279 shares. The stock had previously closed at $1,490.24.

Other analysts have also recently issued reports about the stock. Susquehanna increased their price target on shares of MercadoLibre to $2,400.00 and gave the company a “positive” rating in a research note on Tuesday, October 6th. Raymond James Financial reissued a “strong-buy” rating on shares of MercadoLibre in a report on Thursday, November 5th. Scotiabank dropped their price objective on shares of MercadoLibre from $2,800.00 to $2,300.00 and set a “sector outperform” rating for the company in a research report on Thursday, November 5th. New Street Research began coverage on MercadoLibre in a report on Wednesday, September 23rd. They set a “buy” rating and a $2,450.00 price objective on the stock. Finally, BTIG Research reduced their price objective on MercadoLibre from $2,150.00 to $2,050.00 and set a “buy” rating on the stock in a report on Thursday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $2,170.62.

MercadoLibre News Roundup

These are some of the MELI news items that stood out recently:

• Neutral Sentiment: Shares fell about 20% from October 5 to November 10 and reached a new 52-week low; one analysis describes a possible technical support bid near $1,500, though that does not resolve concerns about fundamentals. Article: MercadoLibre Stock Fell 20% in a Month After Hitting a New 52-Week Low. Is the Selling Overdone?
• Negative Sentiment: Profitability is the key concern: quarterly EPS of $8.83 missed the $9.27 consensus, while heavy investment spending and margin pressure have raised questions about how much of the strong sales growth will translate into earnings. Article: MercadoLibre stock faces a sharper test of profitable growth
• Negative Sentiment: Analyst actions add pressure. UBS lowered its price target from $1,750 to $1,600 and maintained a neutral rating; JPMorgan also cut its target, while a recent analysis points to further target reductions amid weak technical momentum. UBS rating information Article: MercadoLibre stock price target cut by JPMorgan Article: Analyst cuts meet a soft technical bid near $1,500

Institutional Trading of MercadoLibre

Several institutional investors and hedge funds have recently added to or reduced their stakes in MELI. Wedbush Fund Advisers LLC acquired a new stake in shares of MercadoLibre during the 2nd quarter worth approximately $29,000. Twin Lakes Capital Management LLC acquired a new position in MercadoLibre in the second quarter valued at approximately $31,000. NBT Bank N.A. acquired a new position in MercadoLibre in the third quarter valued at approximately $35,000. Markowski Investments acquired a new position in MercadoLibre in the second quarter valued at approximately $36,000. Finally, Byrne Asset Management LLC bought a new position in MercadoLibre in the third quarter valued at approximately $40,000. 87.62% of the stock is owned by institutional investors.

MercadoLibre Trading Down 2.4%

The stock has a market capitalization of $74.79 billion, a P/E ratio of 39.57, a PEG ratio of 1.08 and a beta of 1.42. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.17 and a quick ratio of 1.10. The business’s 50 day simple moving average is $1,770.75 and its 200-day simple moving average is $1,791.80.

MercadoLibre (NASDAQ:MELI) last issued its earnings results on Wednesday, November 4th. The company reported $8.83 EPS for the quarter, missing the consensus estimate of $9.27 by ($0.44). The business had revenue of $10.75 billion for the quarter, compared to the consensus estimate of $10.69 billion. MercadoLibre had a net margin of 4.91% and a return on equity of 25.15%. The business’s revenue was up 45.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $8.32 EPS. As a group, analysts forecast that MercadoLibre, Inc. will post 37.44 EPS for the current year.

MercadoLibre Company Profile

MercadoLibre, Inc. operates an online commerce and financial technology platform focused on Latin America. Founded in Argentina in 1999, the company connects buyers and sellers through its marketplace, where businesses and individuals can list and purchase a wide range of products. The company’s services also include Mercado Pago, which offers digital payment and financial services for transactions on and off its marketplace. MercadoLibre supports commerce with services such as Mercado Envíos, its shipping and logistics platform, and provides advertising tools for merchants and brands.