MercadoLibre (NASDAQ:MELI) Shares Gap Down Following Weak Earnings

Shares of MercadoLibre, Inc. (NASDAQ:MELI) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $2,117.30, but opened at $1,920.00. MercadoLibre shares last traded at $1,787.03, with a volume of 840,993 shares traded.

The company reported $7.83 earnings per share for the quarter, missing the consensus estimate of $11.27 by ($3.44). The firm had revenue of $5.31 billion during the quarter, compared to analysts’ expectations of $5.25 billion. MercadoLibre had a return on equity of 43.52% and a net margin of 8.03%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Barclays boosted their target price on shares of MercadoLibre from $2,100.00 to $2,500.00 and gave the company an “overweight” rating in a report on Wednesday, October 2nd. Susquehanna increased their price objective on MercadoLibre from $2,300.00 to $2,350.00 and gave the stock a “positive” rating in a report on Wednesday, August 28th. Bank of America lifted their target price on MercadoLibre from $2,250.00 to $2,500.00 and gave the company a “buy” rating in a report on Thursday, September 12th. Morgan Stanley increased their price target on shares of MercadoLibre from $2,175.00 to $2,500.00 and gave the stock an “overweight” rating in a report on Friday, September 20th. Finally, Citigroup boosted their price objective on shares of MercadoLibre from $2,200.00 to $2,480.00 and gave the company a “buy” rating in a research note on Tuesday, October 22nd. Three equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $2,301.67.

Hedge Funds Weigh In On MercadoLibre

A number of large investors have recently modified their holdings of MELI. Migdal Insurance & Financial Holdings Ltd. raised its position in MercadoLibre by 1,600.0% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 17 shares of the company’s stock worth $28,000 after purchasing an additional 16 shares during the period. Optimum Investment Advisors increased its stake in MercadoLibre by 750.0% in the 3rd quarter. Optimum Investment Advisors now owns 17 shares of the company’s stock worth $35,000 after purchasing an additional 15 shares during the period. Financial Connections Group Inc. bought a new stake in MercadoLibre in the second quarter valued at approximately $36,000. Quarry LP purchased a new stake in shares of MercadoLibre during the second quarter valued at approximately $43,000. Finally, NBC Securities Inc. grew its holdings in shares of MercadoLibre by 35.0% in the third quarter. NBC Securities Inc. now owns 27 shares of the company’s stock worth $55,000 after purchasing an additional 7 shares during the last quarter. 87.62% of the stock is owned by hedge funds and other institutional investors.

MercadoLibre Price Performance

The firm’s fifty day moving average price is $2,055.08 and its 200-day moving average price is $1,819.36. The company has a quick ratio of 1.26, a current ratio of 1.28 and a debt-to-equity ratio of 0.67. The stock has a market cap of $92.08 billion, a P/E ratio of 65.79, a PEG ratio of 1.26 and a beta of 1.61.

About MercadoLibre

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