MercadoLibre, Inc. (NASDAQ:MELI) experienced a significant share price increase of 9.7% during trading on Monday, reaching a high of $2,168.14. The stock closed at $2,165.42, following a previous close of $1,973.70. Approximately 377,128 shares exchanged hands, marking a 4% decrease from the average daily trading volume of 391,419 shares.
Analyst Insights and Ratings
Recent analyst reports provide a mixed outlook for MercadoLibre. On October 31, 2023, Weiss Ratings reaffirmed a “buy (B-)” rating for the company. Meanwhile, Benchmark revised its price target from $2,875.00 to $2,780.00 while maintaining a “buy” rating as of October 30, 2023. BTIG Research also reiterated a “buy” rating, setting its price objective at $2,750.00.
Morgan Stanley raised its price target from $2,850.00 to $2,950.00 and assigned an “overweight” rating on November 3, 2023. Conversely, Wedbush lowered its target price from $2,800.00 to $2,700.00, while maintaining an “outperform” rating. Currently, one analyst rates the stock as a Strong Buy, while sixteen support a Buy rating, two suggest Hold, and one indicates Sell. MarketBeat.com reports an average rating of “Moderate Buy” with a consensus price target of $2,842.94.
Recent Earnings Performance
MercadoLibre’s latest quarterly earnings report, released on October 29, 2023, revealed earnings per share (EPS) of $8.32, falling short of analysts’ expectations of $9.88 by $1.56. Despite this miss, the company’s revenue reached $7.41 billion, surpassing the consensus estimate of $7.19 billion. This figure represents a year-over-year revenue increase of 39.5%, although EPS decreased from $7.83 in the same period last year.
Looking ahead, analysts predict that MercadoLibre will report an EPS of 43.96 for the current fiscal year.
Insider Trading and Institutional Activity
In related news, insider transactions indicate some shifts in ownership. On December 12, 2023, Director Henrique Vasoncelos Dubugras sold 845 shares at an average price of $2,028.14, totaling approximately $1,713,778.30. Director Emiliano Calemzuk sold 45 shares on December 11, 2023, at an average price of $2,027.37, generating around $91,231.65. Following this transaction, Calemzuk directly owns 257 shares, valued at $521,034.09. Over the past ninety days, insiders have sold a total of 1,136 shares worth approximately $2,308,788. Currently, corporate insiders control 0.25% of the company’s stock.
Institutional investors have also been active. Jackson Wealth Management LLC acquired a new stake in MercadoLibre valued at approximately $499,000 during the second quarter. Highview Capital Management LLC DE purchased shares worth around $559,000. Additionally, Ninety One North America Inc. increased its holdings by 21.5%, now owning 6,094 shares valued at $15,927,000.
Other notable movements include Resona Asset Management Co. Ltd., which grew its stake by 4.0%, and Jennison Associates LLC, which increased its position by 7.0%. Collectively, hedge funds and institutional investors hold 87.62% of MercadoLibre’s stock.
MercadoLibre continues to evolve as a leading e-commerce and fintech platform in Latin America, connecting consumers and businesses through its comprehensive marketplace. As the company navigates its financial landscape, both analysts and investors will be closely monitoring its performance and strategic decisions moving forward.
