MercadoLibre Inc. (NASDAQ:MELI) finished Friday with a subtraction of -$57.06 to close at $1330.00, a downside of -4.11 percent. An average of 584,160 shares of common stock have been traded in the last five days. There was a gain of $33.84 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 643,600 shares traded, while the 50-day average volume stands at 565,530.
MELI stock has increased by 15.98% in the last month. The company shares reached their 1-month lowest point of $1,126.84 on 07/14/23. With the stock rallying to its 52-week high on 08/10/23, shares of the company touched a low of $754.76 and a high of $1388.39 in 52 weeks. It has reached a new high 19 times so far this year and achieved 57.17% or $483.76 in price. In spite of this, the price is down -4.21% from the 52-week high.
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Insider Transactions
MELI stock investors should be aware that MercadoLibre Inc. (MELI) stock had its last reported insider trading activity 157 days ago on Mar 08. In this transaction, the insider spent $187,500. Executive VP Corporate Affairs, de la Serna Juan Martin, disposed of 150 shares at a price of $1265.00 on Mar 07. The insider now owns more than $189,750 worth of shares. Prior to that, Director Calemzuk Emiliano went on to Sale 150 shares at $1256.00 each on Mar 07. An amount of $188,400 was transacted.
Valuation Metrics
MercadoLibre Inc. (MELI) has a trailing price-to-earnings (P/E) ratio of 89.18. The stock’s beta is 1.50. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.61, the price-to-book (PB) ratio at 29.63, and the price-to-cash flow ratio at 16.56.
Financial Health
The quick ratio of MercadoLibre Inc. for the three months ended June 29 was 1.30, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.10 and a total debt to equity ratio of 2.12 for the quarter ending June 29. MercadoLibre Inc.’s EBITDA margin for the year ending June 29 is 12.94%, while its operating margin for the same period stands at 12.70%. Its gross profit as reported stood at $5.16 billion compared to revenue of $10.54 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, MercadoLibre Inc.’s return on assets was 5.50%.
Earnings Surprise
For the three-month period that ended June 29, MercadoLibre Inc. had $2.84 billion in cash and short-term investments compared to $2.48 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $262.0 million in the quarter, while revenues were grew 53.05%. The analyst consensus anticipated MercadoLibre Inc.’s latest quarter earnings to come in at $4.54 per share, but it turned out to be $5.16, a 13.70% surprise. For the quarter, EBITDA amounted to $686.0 million. Shareholders own equity worth $50.09 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at MercadoLibre Inc. (MELI) price momentum. RSI 9-day as of the close on 11 August was 58.11%, suggesting the stock is Neutral, with historical volatility in this time frame at 84.68%.
As of today, MELI’s price is $1,343.38 +2.61% or $33.84 from its 5-day moving average. MELI is currently trading +17.11% higher than its 20-day SMA and +12.45% higher than its 100-day SMA. However, the stock’s current price level is +7.34% above the SMA50 and +60.79% above the SMA200.
The stochastic %K and %D were 82.96% and 83.69%, respectively, and the average true range (ATR) was 57.02. With the 14-day stochastic at 75.51% and the average true range at 53.92, the RSI (14) stands at 57.69%. The stock has reached 41.98 on the 9-day MACD Oscillator while the 14-day reading was at 78.78.
Analyst Ratings
BofA Securities downgraded MercadoLibre Inc. (NASDAQ: MELI) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for MercadoLibre Inc. (MELI) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell MELI, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 16 others rate it as a “buy”.
What is MELI’s price target for the next 12 months?
Analysts predict a range of price targets between $1350.00 and $2180.00, with a median target of $1600.00. Taking a look at these predictions, the average price target given by analysts for MercadoLibre Inc. (MELI) stock is $1634.49.
