why MercadoLibre Inc. [MELI] is a Good Choice for Investors After New Price Target of $2075.71

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MercadoLibre Inc. [NASDAQ: MELI] price plunged by -0.93 percent to reach at -$12.0. The company report on November 16, 2021 that MercadoLibre, Inc. Announces Pricing of Equity Offering.

MercadoLibre, Inc. (Nasdaq: MELI) announced the pricing of an underwritten public offering of 1,000,000 shares of common stock at a public offering price of $1,550.00 per share, for aggregate proceeds before underwriting discount and expenses of $1.55 billion. In addition, the underwriters have a 30-day option to purchase up to an additional 150,000 shares of common stock.


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This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

A sum of 837165 shares traded at recent session while its average daily volume was at 415.85K shares. MercadoLibre Inc. shares reached a high of $1,308.30 and dropped to a low of $1,263.00 until finishing in the latest session at $1273.00.

The one-year MELI stock forecast points to a potential upside of 38.67. The average equity rating for MELI stock is currently 1.90, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on 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 $2075.71 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 1.90. 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.

Scotiabank have made an estimate for MercadoLibre Inc. shares, keeping their opinion on the stock as Sector Outperform, with their previous recommendation back on October 25, 2021. While these analysts kept the previous recommendation, DZ Bank raised their target price to Buy. The new note on the price target was released on July 09, 2021, representing the official price target for MercadoLibre Inc. stock.

The Average True Range (ATR) for MercadoLibre Inc. is set at 63.94, with the Price to Sales ratio for MELI stock in the period of the last 12 months amounting to 10.37. The Price to Book ratio for the last quarter was 513.31, with the Price to Cash per share for the same quarter was set at 39.76. Price to Free Cash Flow for MELI in the course of the last twelve months was 7219.32 with Quick ratio for the last quarter at 1.20.

MELI Stock Performance Analysis:

MercadoLibre Inc. [MELI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -14.41. With this latest performance, MELI shares dropped by -17.59% in over the last four-week period, additionally sinking by -6.05% over the last 6 months – not to mention a drop of -11.55% 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 27.86, with the RSI for the last a single of trading hit 21.90, and the three-weeks RSI is set at 31.62 for MercadoLibre Inc. [MELI]. The present Moving Average for the last 50 days of trading for this stock 1,590.26, while it was recorded at 1,344.04 for the last single week of trading, and 1,586.25 for the last 200 days.

Insight into MercadoLibre Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and MercadoLibre Inc. [MELI] shares currently have an operating margin of +3.21 and a Gross Margin at +41.37. MercadoLibre Inc.’s Net Margin is presently recorded at -0.02.

Return on Total Capital for MELI is now 3.95, given the latest momentum, and Return on Invested Capital for the company is -0.03. Return on Equity for this stock declined to -0.04, with Return on Assets sitting at -0.01. When it comes to the capital structure of this company, MercadoLibre Inc. [MELI] has a Total Debt to Total Equity ratio set at 103.42. Additionally, MELI Total Debt to Total Capital is recorded at 50.84, with Total Debt to Total Assets ending up at 26.17. Long-Term Debt to Equity for the company is recorded at 66.87, with the Long-Term Debt to Total Capital now at 32.87.

Reflecting on the efficiency of the workforce at the company, MercadoLibre Inc. [MELI] managed to generate an average of -$45 per employee. Receivables Turnover for the company is 3.88 with a Total Asset Turnover recorded at a value of 0.70.MercadoLibre Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.

MELI Stock EPS

With the latest financial reports released by the company, MercadoLibre Inc. posted 0.28/share EPS, while the average EPS was predicted by analysts to be reported at 0.17/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 64.70%. 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%.

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MercadoLibre Inc. [MELI] Insider Position Details

There are presently around $50,342 million, or 83.40% of MELI stock, in the hands of institutional investors. The top three institutional holders of MELI stocks are: BAILLIE GIFFORD & CO with ownership of 4,702,313, which is approximately 2.166% of the company’s market cap and around 8.23% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 3,852,298 shares of the stock with an approximate value of $4.9 billion in MELI stocks shares; and CAPITAL WORLD INVESTORS, currently with $2.96 billion in MELI stock with ownership of nearly 3.857% 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 435 institutional holders increased their position in MercadoLibre Inc. [NASDAQ:MELI] by around 2,811,262 shares. Additionally, 396 investors decreased positions by around 2,795,196 shares, while 166 investors held positions by with 33,939,194 shares. The mentioned changes placed institutional holdings at 39,545,652 shares, according to the latest SEC report filing. MELI stock had 109 new institutional investments in for a total of 446,104 shares, while 63 institutional investors sold positions of 491,263 shares during the same period.

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