MercadoLibre (NASDAQ:MELI) Shares Gap Up Following Earnings Beat

MercadoLibre, Inc. (NASDAQ:MELIGet Rating)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $890.87, but opened at $1,006.50. MercadoLibre shares last traded at $1,050.00, with a volume of 24,522 shares changing hands.

The company reported $2.43 EPS for the quarter, beating analysts’ consensus estimates of $1.68 by $0.75. MercadoLibre had a net margin of 2.68% and a return on equity of 21.93%. During the same quarter in the previous year, the company posted $1.37 EPS.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on MELI. KGI Securities began coverage on shares of MercadoLibre in a report on Monday, June 6th. They set an “outperform” rating on the stock. StockNews.com raised shares of MercadoLibre from a “sell” rating to a “hold” rating in a report on Thursday. Jefferies Financial Group decreased their target price on shares of MercadoLibre from $850.00 to $800.00 in a report on Thursday, July 21st. Stifel Nicolaus decreased their target price on shares of MercadoLibre from $1,200.00 to $1,000.00 in a report on Friday, July 15th. Finally, TheStreet raised shares of MercadoLibre from a “d+” rating to a “c-” rating in a report on Friday, May 6th. Two analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,392.00.

Institutional Trading of MercadoLibre

A number of hedge funds have recently added to or reduced their stakes in the business. Capital Research Global Investors increased its holdings in shares of MercadoLibre by 20.5% during the fourth quarter. Capital Research Global Investors now owns 4,641,606 shares of the company’s stock valued at $6,258,766,000 after acquiring an additional 789,308 shares in the last quarter. Jennison Associates LLC grew its stake in shares of MercadoLibre by 20.7% during the 1st quarter. Jennison Associates LLC now owns 2,459,395 shares of the company’s stock worth $2,925,401,000 after purchasing an additional 421,186 shares during the period. Capital International Investors grew its stake in shares of MercadoLibre by 79.5% during the 4th quarter. Capital International Investors now owns 858,798 shares of the company’s stock worth $1,158,679,000 after purchasing an additional 380,242 shares during the period. Norges Bank acquired a new stake in shares of MercadoLibre during the 4th quarter worth approximately $476,577,000. Finally, Schroder Investment Management Group lifted its position in shares of MercadoLibre by 107.8% during the 4th quarter. Schroder Investment Management Group now owns 623,745 shares of the company’s stock valued at $841,058,000 after buying an additional 323,642 shares in the last quarter. 79.61% of the stock is owned by hedge funds and other institutional investors.

MercadoLibre Stock Down 1.0 %

The stock has a market cap of $51.63 billion, a PE ratio of 216.66 and a beta of 1.68. The company has a current ratio of 1.40, a quick ratio of 1.36 and a debt-to-equity ratio of 1.66. The business has a 50-day moving average price of $737.27 and a 200-day moving average price of $924.67.

MercadoLibre Company Profile

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MercadoLibre, Inc operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago FinTech, 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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