Does MercadoLibre Inc.’s (NASDAQ:MELI) Current Price Make It Worth Investing In?

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During the last session, MercadoLibre Inc. (NASDAQ:MELI)’s traded shares were 0.84 million, with the beta value of the company hitting 1.42. At the end of the trading day, the stock’s price was $1273.00, reflecting an intraday loss of -0.93% or -$12.0. The 52-week high for the MELI share is $2020.00, that puts it down -58.68 from that peak though still a striking 0.83% gain since the share price plummeted to a 52-week low of $1262.38. The company’s market capitalization is $64.97B, and the average trade volume was 415.85K shares over the past three months.

MercadoLibre Inc. (MELI) received a consensus recommendation of a Buy from analysts. That translates to a mean rating of 1.90. MELI has a Sell rating from 0 analyst(s) out of 22 analysts who have looked at this stock. 3 analyst(s) recommend to Hold the stock while 1 suggest Overweight, and 18 recommend a Buy rating for it. 0 analyst(s) has rated the stock Underweight. Company’s earnings per share (EPS) for the current quarter are expected to be $1.25.

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MercadoLibre Inc. (MELI) registered a -0.93% downside in the last session and has traded in the red over the past 5 sessions. The stock plummet -0.93% in intraday trading to $1273.00 this Wednesday, 11/24/21, hitting a weekly high. The stock’s 5-day price performance is -14.41%, and it has moved by -17.59% in 30 days. Based on these gigs, the overall price performance for the year is -11.55%.

The consensus price target of analysts on Wall Street is $2108.95, which implies an increase of 39.64% to the stock’s current value. The extremes of the forecast give a target low and a target high price of $1600.00 and $2500.00 respectively. As a result, MELI is trading at a discount of -96.39% off the target high and -25.69% off the low.

MercadoLibre Inc. (MELI) estimates and forecasts

Statistics show that MercadoLibre Inc. has outperformed its competitors in share price, compared to the industry in which it operates. MercadoLibre Inc. (MELI) shares have gone down -6.05% during the last six months, with a year-to-date growth rate more than the industry average at 4,512.50% against 5.10. Yet analysts are ramping up their growth forecast for the fiscal year 2021. Revenue is predicted to grow 346.40% this quarter and then jump 184.30% in the quarter after that. In the rating firms’ projections, revenue will increase 69.90% compared to the previous financial year.

Revenue for the current quarter is expected to be $1.83 billion as predicted by 12 analyst(s). Meanwhile, a consensus of 12 analyst(s) estimates revenue growth to $2 billion by the end of Dec 2021. As per earnings report from last fiscal year’s results, sales for the corresponding quarters totaled $972.31 million and $1.33 billion respectively. In this case, analysts expect current quarter sales to grow by 88.30% and then jump by 50.90% in the coming quarter.

An analysis of the company’s performance over the past 5 years shows that the company’s earnings shrunk an estimated -14.90%. While earnings are projected to return 99.60% in 2021, the next five years will return 20.50% per annum.

MELI Dividends

MercadoLibre Inc. is due to release its next quarterly earnings between November 02 and November 08. However, it is important to remember that the dividend yield ratio is merely an indicator meant to only serve as guidance.

MercadoLibre Inc. (NASDAQ:MELI)’s Major holders

MercadoLibre Inc. insiders own 8.23% of total outstanding shares while institutional holders control 83.00%, with the float percentage being 90.44%. Baillie Gifford and Company is the largest shareholder of the company, while 1,359 institutions own stock in it. As of Mar 30, 2021, the company held over 4.64 million shares (or 9.30% of all shares), a total value of $6.83 billion in shares.

The next largest institutional holding, with 3.35 million shares, is of Capital Research Global Investors’s that is approximately 6.73% of outstanding shares. At the market price on Mar 30, 2021, these shares were valued at $4.94 billion.

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Also, the Mutual Funds coming in first place with the largest holdings of MercadoLibre Inc. (MELI) shares are Europacific Growth Fund and Vanguard International Growth Fund. Data provided on Dec 30, 2020 indicates that Europacific Growth Fund owns about 2.64 million shares. This amounts to just over 5.29 percent of the company’s overall shares, with a $4.42 billion market value. The same data shows that the other fund manager holds slightly less at 1.87 million, or about 3.76% of the stock, which is worth about $3.07 billion.