MercadoLibre SA (NASDAQ:MELI) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued on Wednesday. The firm presently has a $212.00 target price on the stock. Zacks Investment Research’s price objective points to a potential upside of 13.80% from the company’s current price.
According to Zacks, “MercadoLibre is the largest online trading platform in Latin America. We are market leaders in e-commerce in each of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela, based on unique visitors and page views. Additionally, we have recently launched online trading platforms in Costa Rica, the Dominican Republic and Panama. With a market of over Five fifty million people and a region with one of the world’s fastest-growing Internet penetration rates, we provide buyers and sellers a robust online trading environment that fosters the development of a large and growing e-commerce community. We offer a technological and commercial solution that addresses the distinctive cultural and geographic challenges of operating an online trading platform in Latin America. “
Several other equities analysts have also weighed in on MELI. Piper Jaffray Cos. reissued a “buy” rating and issued a $160.00 target price on shares of MercadoLibre SA in a research note on Friday, July 1st. Goldman Sachs Group Inc. began coverage on MercadoLibre SA in a research report on Tuesday, August 9th. They set a “neutral” rating and a $170.00 price target on the stock. Finally, JPMorgan Chase & Co. raised MercadoLibre SA from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $173.68 to $200.00 in a research report on Friday, September 2nd. Four equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. MercadoLibre SA currently has a consensus rating of “Buy” and a consensus target price of $162.88.
MercadoLibre SA (NASDAQ:MELI) traded up 1.69% during midday trading on Wednesday, reaching $189.44. The company had a trading volume of 129,260 shares. The company’s 50-day moving average is $178.34 and its 200 day moving average is $147.07. MercadoLibre SA has a 52-week low of $84.19 and a 52-week high of $191.76. The company has a market cap of $8.37 billion, a PE ratio of 64.00 and a beta of 2.08.
MercadoLibre SA (NASDAQ:MELI) last released its earnings results on Thursday, August 4th. The company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.59 by $0.23. MercadoLibre SA had a net margin of 18.50% and a return on equity of 38.04%. The company earned $199.60 million during the quarter, compared to analyst estimates of $180.94 million. During the same period in the previous year, the company posted $0.44 EPS. The company’s quarterly revenue was up 29.4% compared to the same quarter last year. On average, equities research analysts forecast that MercadoLibre SA will post $2.76 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Friday, September 30th will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.32%. MercadoLibre SA’s payout ratio is presently 20.34%.
In related news, EVP Daniel Rabinovich sold 6,195 shares of the stock in a transaction dated Friday, August 19th. The stock was sold at an average price of $166.61, for a total transaction of $1,032,148.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Pedro Arnt sold 3,000 shares of the stock in a transaction dated Tuesday, August 9th. The stock was sold at an average price of $168.27, for a total value of $504,810.00. Following the transaction, the vice president now owns 19,129 shares of the company’s stock, valued at $3,218,836.83. The disclosure for this sale can be found here. Corporate insiders own 0.36% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of MELI. IFP Advisors Inc increased its position in MercadoLibre SA by 8.8% in the second quarter. IFP Advisors Inc now owns 765 shares of the company’s stock worth $108,000 after buying an additional 62 shares during the last quarter. Seven Eight Capital LLC purchased a new position in MercadoLibre SA during the second quarter worth about $113,000. Creative Planning increased its position in MercadoLibre SA by 18.4% in the second quarter. Creative Planning now owns 1,126 shares of the company’s stock worth $158,000 after buying an additional 175 shares during the last quarter. Societe Generale purchased a new position in MercadoLibre SA during the second quarter worth about $186,000. Finally, SG Americas Securities LLC purchased a new position in MercadoLibre SA during the second quarter worth about $186,000. Institutional investors and hedge funds own 74.01% of the company’s stock.
MercadoLibre SA Company Profile
MercadoLibre, Inc (MercadoLibre) hosts an online commerce platform in Latin America, which is focused on enabling e-commerce and its related services. The Company provides a portfolio of services facilitating e-commerce transactions. Its geographic segments are Brazil, Argentina, Mexico, Venezuela and other countries (including Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America.
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