Impax Asset Management Increases Stake in MercadoLibre by 4.5%

Impax Asset Management Group plc has increased its holdings in MercadoLibre, Inc. (NASDAQ:MELI) by 4.5%, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now owns a total of 2,035 shares after acquiring an additional 87 shares in the second quarter. As of the latest SEC filing, Impax’s stake in MercadoLibre is valued at approximately $5,319,000.

A number of other institutional investors have also adjusted their positions in MercadoLibre. Notably, GW&K Investment Management LLC entered a new position in the first quarter, valued at $25,000. Close Asset Management Ltd significantly increased its stake by 366.7%, owning 14 shares worth $27,000 after purchasing an additional 11 shares. Similarly, Highline Wealth Partners LLC boosted its holdings by 366.7% in the second quarter, now owning 14 shares valued at $37,000. Brooklyn Investment Group expanded its position by 650.0%, now holding 15 shares worth $29,000 after acquiring 13 additional shares. Twin Tree Management LP also purchased shares earlier this year, with a new position valued at around $29,000. Currently, institutional investors hold 87.62% of MercadoLibre’s stock.

Analysts Adjust Price Targets

Recent reports from several research analysts indicate mixed sentiment on MercadoLibre’s stock. Cantor Fitzgerald has lowered its target price from $2,900.00 to $2,750.00, while maintaining an “overweight” rating. Susquehanna has similarly adjusted its price objective from $2,975.00 to $2,900.00 with a “positive” rating. Meanwhile, Morgan Stanley increased its target from $2,850.00 to $2,950.00, also assigning an “overweight” rating. Barclays raised its target price from $2,800.00 to $2,900.00 with an “overweight” rating, while Wedbush boosted its target from $2,700.00 to $2,800.00, giving the stock an “outperform” rating. Overall, one analyst rates the stock as a Strong Buy, thirteen as Buy, and two as Hold. According to MarketBeat.com, MercadoLibre has a consensus rating of “Moderate Buy” with an average target price of $2,861.25.

Company Performance and Financial Outlook

On October 29, 2023, MercadoLibre announced its quarterly earnings, reporting earnings per share of $8.32, which fell short of analysts’ expectations of $9.88 by $1.56. The company achieved a net margin of 7.93% and a return on equity of 41.35%. Revenue for the quarter stood at $7.41 billion, exceeding forecasts of $7.19 billion. This marks a 39.5% increase in revenue year-over-year, although earnings per share have decreased from $7.83 in the same period last year. Analysts predict that MercadoLibre will post an average of 43.96 earnings per share for the current fiscal year.

MercadoLibre operates various online commerce platforms in the United States, including the Mercado Libre Marketplace, which allows businesses and individuals to conduct online sales. Additionally, it offers the Mercado Pago FinTech platform, facilitating transactions both on and off its marketplaces.

For those interested in tracking further developments and institutional holdings in MercadoLibre, resources such as HoldingsChannel.com provide insights into the latest 13F filings and insider trades.