MercadoLibre (NASDAQ:MELI) Hits New 1-Year Low – Time to Sell?

MercadoLibre, Inc. (NASDAQ:MELI)’s share price hit a new 52-week low on Friday . The company traded as low as $1,593.60 and last traded at $1,606.9150, with a volume of 133460 shares traded. The stock had previously closed at $1,630.99.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on MELI shares. Barclays lowered their price objective on MercadoLibre from $2,900.00 to $2,600.00 and set an “overweight” rating for the company in a research report on Wednesday, February 25th. Morgan Stanley decreased their target price on MercadoLibre from $2,800.00 to $2,600.00 and set an “overweight” rating for the company in a research note on Monday, March 9th. UBS Group lowered their target price on MercadoLibre from $2,900.00 to $2,700.00 and set a “buy” rating for the company in a report on Friday, February 27th. Dbs Bank raised MercadoLibre from a “hold” rating to a “moderate buy” rating in a research note on Tuesday, December 2nd. Finally, Zacks Research upgraded MercadoLibre from a “strong sell” rating to a “hold” rating in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, MercadoLibre has an average rating of “Moderate Buy” and a consensus price target of $2,708.67.

MercadoLibre Stock Performance

The stock has a market cap of $81.10 billion, a P/E ratio of 40.60, a P/E/G ratio of 0.81 and a beta of 1.48. The company has a fifty day moving average price of $1,901.13 and a 200 day moving average price of $2,064.78. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.17 and a quick ratio of 1.15.

MercadoLibre (NASDAQ:MELI) last issued its earnings results on Tuesday, February 24th. The company reported $11.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $11.66 by ($0.63). MercadoLibre had a return on equity of 33.73% and a net margin of 6.91%.The firm had revenue of $8.76 billion during the quarter, compared to the consensus estimate of $8.45 billion. During the same quarter in the prior year, the business earned $12.61 earnings per share. MercadoLibre’s revenue for the quarter was up 44.6% on a year-over-year basis. On average, equities analysts expect that MercadoLibre, Inc. will post 43.96 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Galaxy Digital Capital Management GP LLC acquired a new position in shares of MercadoLibre during the fourth quarter valued at about $1,571,000. J. Derek Lewis & Associates Inc. acquired a new stake in shares of MercadoLibre in the 4th quarter worth about $222,000. Purpose Unlimited Inc. acquired a new stake in shares of MercadoLibre in the 4th quarter worth about $28,000. Cornerstone Planning LLC bought a new position in MercadoLibre in the 4th quarter valued at about $272,000. Finally, Osbon Capital Management LLC bought a new position in MercadoLibre in the 4th quarter valued at about $97,000. 87.62% of the stock is owned by institutional investors.

MercadoLibre Company Profile

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.