MercadoLibre, Inc. (NASDAQ: MELI) experienced a significant surge in its share price, rising by 9.7% during trading on Monday. The stock peaked at $2,168.14 before closing at $2,165.42. Approximately 377,128 shares exchanged hands, marking a decline of 4% from the average daily volume of 391,419 shares. This increase follows a previous closing price of $1,973.70.
Analysts have provided mixed insights regarding MercadoLibre’s stock performance. Weiss Ratings reaffirmed a “buy (B-)” rating on October 31, 2023. In contrast, Benchmark reduced its price target from $2,875.00 to $2,780.00, while maintaining a “buy” rating. BTIG Research also restated its “buy” rating with a price objective of $2,750.00. Conversely, Morgan Stanley raised its price target from $2,850.00 to $2,950.00, assigning an “overweight” rating. Wedbush adjusted its price target downwards from $2,800.00 to $2,700.00, maintaining an “outperform” rating.
Overall, one analyst has issued a “strong buy” rating, sixteen have given a “buy,” two assigned “hold,” and one rated the stock as a “sell.” According to MarketBeat.com, MercadoLibre has an average rating of “moderate buy” with a consensus price target of $2,842.94.
Quarterly Earnings Report
On October 29, 2023, MercadoLibre announced its latest quarterly earnings. The company reported earnings per share (EPS) of $8.32, falling short of analysts’ expectations of $9.88 by $1.56. Despite this, MercadoLibre achieved a return on equity of 39.03% and a net margin of 7.93%. The firm generated revenue of $7.41 billion, surpassing the consensus estimate of $7.19 billion. This figure represents a year-over-year increase of 39.5%, compared to a reported $7.83 EPS during the same period last year.
Analysts predict that MercadoLibre will post an EPS of $43.96 for the current fiscal year, reflecting ongoing confidence in the company’s growth potential.
Insider Activity and Institutional Holdings
In recent insider transactions, Director Henrique Vasoncelos Dubugras sold 845 shares on December 12, 2023, for a total of $1,713,778.30 at an average price of $2,028.14. Another director, Emiliano Calemzuk, sold 45 shares on December 11, 2023, totaling $91,231.65 at an average price of $2,027.37. Following this transaction, Calemzuk holds 257 shares valued at approximately $521,034.09, reflecting a 14.90% decrease in his position. Over the past ninety days, insiders have sold a total of 1,136 shares valued at $2,308,788. Currently, corporate insiders own 0.25% of MercadoLibre’s stock.
Institutional investors have also been active in adjusting their holdings in MercadoLibre. During the second quarter, Jackson Wealth Management LLC acquired a new stake valued at around $499,000. Similarly, Highview Capital Management LLC invested approximately $559,000 in the same period. Ninety One North America Inc. increased its position by 21.5%, now owning 6,094 shares worth $15,927,000. Resona Asset Management Co. Ltd. grew its stake by 4.0%, while Jennison Associates LLC increased its position by 7.0%, holding 1,235,240 shares valued at $3,228,460,000. Notably, institutional investors control approximately 87.62% of MercadoLibre’s stock.
MercadoLibre operates a comprehensive e-commerce and fintech ecosystem that serves consumers and businesses throughout Latin America. The company provides an online marketplace connecting buyers and sellers, along with a range of merchant tools, advertising solutions, and classified services. As the company continues to expand beyond its marketplace roots, it focuses on enhancing digital commerce through logistics and payment services.
