MercadoLibre (NASDAQ:MELI) Shares Gap Down on Disappointing Earnings

MercadoLibre, Inc. (NASDAQ:MELI)’s share price 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.

The company reported $7.83 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $11.27 by ($3.44). The business had revenue of $5.31 billion during the quarter, compared to analyst estimates of $5.25 billion. MercadoLibre had a net margin of 7.57% and a return on equity of 42.61%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Barclays increased their price target on MercadoLibre from $2,100.00 to $2,500.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 2nd. Raymond James began coverage on MercadoLibre in a report on Friday, September 27th. They set an “outperform” rating and a $2,350.00 target price for the company. BTIG Research reduced their price objective on MercadoLibre from $2,250.00 to $2,200.00 and set a “buy” rating for the company in a research note on Thursday. JPMorgan Chase & Co. downgraded MercadoLibre from an “overweight” rating to a “neutral” rating and set a $2,400.00 price objective for the company. in a research note on Wednesday, October 2nd. Finally, StockNews.com lowered MercadoLibre from a “buy” rating to a “hold” rating in a research report on Saturday, August 10th. Three research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $2,309.67.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Planning Capital Management Corp boosted its position in MercadoLibre by 9.1% during the third quarter. Planning Capital Management Corp now owns 60 shares of the company’s stock valued at $123,000 after purchasing an additional 5 shares during the last quarter. Mount Lucas Management LP lifted its position in shares of MercadoLibre by 3.6% in the third quarter. Mount Lucas Management LP now owns 143 shares of the company’s stock valued at $293,000 after buying an additional 5 shares during the last quarter. O Dell Group LLC lifted its position in shares of MercadoLibre by 2.1% in the first quarter. O Dell Group LLC now owns 294 shares of the company’s stock valued at $445,000 after buying an additional 6 shares during the last quarter. Belpointe Asset Management LLC lifted its position in shares of MercadoLibre by 1.0% in the second quarter. Belpointe Asset Management LLC now owns 618 shares of the company’s stock valued at $1,016,000 after buying an additional 6 shares during the last quarter. Finally, Ameritas Investment Partners Inc. lifted its position in shares of MercadoLibre by 0.4% in the second quarter. Ameritas Investment Partners Inc. now owns 1,472 shares of the company’s stock valued at $2,419,000 after buying an additional 6 shares during the last quarter. 87.62% of the stock is owned by institutional investors and hedge funds.

MercadoLibre Stock Performance

The company has a market cap of $94.91 billion, a P/E ratio of 66.06, a price-to-earnings-growth ratio of 1.30 and a beta of 1.61. 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 50 day moving average price of $2,046.45 and a two-hundred day moving average price of $1,822.55.

MercadoLibre Company Profile

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.