New Street slashes price target on MercadoLibre Inc. [MELI] – find out why.

MercadoLibre Inc. [NASDAQ: MELI] closed the trading session at $1226.03 on 11/10/20. The day’s price range saw the stock hit a low of $1,219.14, while the highest price level was $1,325.93. The company report on November 5, 2020 that MercadoLibre, Inc. Reports Third Quarter 2020 Financial Results.

Net Revenues of $1,115.7 million, up 148.5% year-over-year on an FX neutral basis$14.5 billion Total Payment Volume, up 161.2% year-over-year on an FX neutral basis$5.9 billion Gross Merchandise Volume, up 117.1% year-over-year on an FX neutral basis.

MercadoLibre, Inc. (Nasdaq: MELI) (http://www.mercadolibre.com), Latin America’s leading e-commerce technology company, today reported financial results for the quarter ended September 30, 2020.

The stocks have a year to date performance of 114.36 percent and weekly performance of -0.64 percent. The stock has been moved at 59.53 percent over the last six months. The stock has performed 0.85 percent around the most recent 30 days and changed 10.29 percent over the most recent 3-months.

If compared to the average trading volume of 526.68K shares, MELI reached to a volume of 1028526 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about MercadoLibre Inc. [MELI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MELI shares is $1322.59 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MELI stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

New Street have made an estimate for MercadoLibre Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 19, 2020. While these analysts kept the previous recommendation, Jefferies raised their target price from $1190 to $1350. The new note on the price target was released on September 28, 2020, representing the official price target for MercadoLibre Inc. stock. Previously, the target price had yet another raise from $630 to $1300, while Susquehanna kept a Positive rating on MELI stock. On June 09, 2020, analysts increased their price target for MELI shares from 800 to 1100.

The Average True Range (ATR) for MercadoLibre Inc. is set at 73.18, with the Price to Sales ratio for MELI stock in the period of the last 12 months amounting to 17.79. The Price to Book ratio for the last quarter was 34.91, with the Price to Cash per share for the same quarter was set at 69.07. Price to Free Cash Flow for MELI in the course of the last twelve months was 73.06 with Quick ratio for the last quarter at 1.60.

MELI stock trade performance evaluation

MercadoLibre Inc. [MELI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.64. With this latest performance, MELI shares gained by 0.85% in over the last four-week period, additionally plugging by 59.53% over the last 6 months – not to mention a rise of 146.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MELI stock in for the last two-week period is set at 47.68, with the RSI for the last a single of trading hit 43.26, and the three-weeks RSI is set at 49.72 for MercadoLibre Inc. [MELI]. The present Moving Average for the last 50 days of trading for this stock 1,169.67, while it was recorded at 1,359.22 for the last single week of trading, and 897.31 for the last 200 days.

MercadoLibre Inc. [MELI]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and MercadoLibre Inc. [MELI] shares currently have an operating margin of -6.67 and a Gross Margin at +45.80. MercadoLibre Inc.’s Net Margin is presently recorded at -7.49.

Return on Total Capital for MELI is now -7.34, given the latest momentum, and Return on Invested Capital for the company is -8.98. Return on Equity for this stock declined to -14.22, with Return on Assets sitting at -4.90. When it comes to the capital structure of this company, MercadoLibre Inc. [MELI] has a Total Debt to Total Equity ratio set at 48.87. Additionally, MELI Total Debt to Total Capital is recorded at 32.83, with Total Debt to Total Assets ending up at 21.28. Long-Term Debt to Equity for the company is recorded at 40.75, with the Long-Term Debt to Total Capital now at 26.07.

Reflecting on the efficiency of the workforce at the company, MercadoLibre Inc. [MELI] managed to generate an average of -$17,726 per employee. Receivables Turnover for the company is 3.95 with a Total Asset Turnover recorded at a value of 0.65.MercadoLibre Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

Earnings per share (EPS) analysis for MercadoLibre Inc. [MELI] stock

With the latest financial reports released by the company, MercadoLibre Inc. posted -1.11/share EPS, while the average EPS was predicted by analysts to be reported at -0.91/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -22.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MELI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for MercadoLibre Inc. go to 20.50%.

MercadoLibre Inc. [MELI]: Insider Ownership positions

There are presently around $51,076 million, or 86.00% of MELI stock, in the hands of institutional investors. The top three institutional holders of MELI stocks are: BAILLIE GIFFORD & CO with ownership of 4,800,797, which is approximately 3.134% of the company’s market cap and around 12.03% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 3,928,275 shares of the stock with an approximate value of $4.82 billion in MELI stocks shares; and CAPITAL WORLD INVESTORS, currently with $3.01 billion in MELI stock with ownership of nearly 5.082% of the company’s market capitalization.

Positions in MercadoLibre Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 377 institutional holders increased their position in MercadoLibre Inc. [NASDAQ:MELI] by around 4,243,180 shares. Additionally, 283 investors decreased positions by around 3,728,999 shares, while 95 investors held positions by with 33,687,853 shares. The mentioned changes placed institutional holdings at 41,660,032 shares, according to the latest SEC report filing. MELI stock had 137 new institutional investments in for a total of 965,031 shares, while 65 institutional investors sold positions of 287,302 shares during the same period.

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