The stock price of MercadoLibre Inc (NASDAQ: MELI) has plunged by -14.38 when compared to previous closing price of 2117.30, but the company has seen a -11.01% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-07 that MercadoLibre’s Q3 earnings report showed strong revenue growth but lower-than-expected EPS, causing an 8% stock drop due to temporary headwinds. Despite short-term issues, MELI remains fundamentally undervalued with significant long-term growth potential in e-commerce, fintech, and digital advertising in Latin America. The stock’s recent decline presents a buying opportunity, supported by favorable valuation metrics and a robust growth outlook.
Is It Worth Investing in MercadoLibre Inc (NASDAQ: MELI) Right Now?
MercadoLibre Inc (NASDAQ: MELI) has a price-to-earnings ratio that is above its average at 65.53x. The stock has a 36-month beta value of 1.60. Opinions on the stock are mixed, with 4 analysts rating it as a “buy,” 2 as “overweight,” 9 as “hold,” and 0 as “sell.”
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The public float for MELI is 46.91M, and at present, short sellers hold a 1.25% of that float. On November 07, 2024, the average trading volume of MELI was 285.66K shares.
MELI’s Market Performance
MELI stock saw a decrease of -11.01% in the past week, with a monthly decline of -11.48% and a quarterly a decrease of -3.76%. The volatility ratio for the week is 2.08%, and the volatility levels for the last 30 days are 2.15% for MercadoLibre Inc (MELI). The simple moving average for the last 20 days is -11.54% for MELI stock, with a simple moving average of 3.37% for the last 200 days.
Analysts’ Opinion of MELI
Many brokerage firms have already submitted their reports for MELI stocks, with Redburn Atlantic repeating the rating for MELI by listing it as a “Buy.” The predicted price for MELI in the upcoming period, according to Redburn Atlantic is $2800 based on the research report published on October 11, 2024 of the current year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see MELI reach a price target of $2400. The rating they have provided for MELI stocks is “Neutral” according to the report published on October 02nd, 2024.
Raymond James gave a rating of “Outperform” to MELI, setting the target price at $2350 in the report published on September 27th of the current year.
MELI Trading at -11.57% from the 50-Day Moving Average
After a stumble in the market that brought MELI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.14% of loss for the given period.
Volatility was left at 2.15%, however, over the last 30 days, the volatility rate increased by 2.08%, as shares sank -11.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.28% lower at present.
During the last 5 trading sessions, MELI fell by -11.15%, which changed the moving average for the period of 200-days by +2.68% in comparison to the 20-day moving average, which settled at $2,049.19. In addition, MercadoLibre Inc saw 15.35% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MELI starting from Meliga No.1 Limited Partnershi, who proposed sale 100,000 shares at the price of $1883.62 back on Aug 13 ’24. After this action, Meliga No.1 Limited Partnershi now owns shares of MercadoLibre Inc, valued at $188,362,000 using the latest closing price.
Stock Fundamentals for MELI
Current profitability levels for the company are sitting at:
- 0.13 for the present operating margin
- 0.48 for the gross margin
The net margin for MercadoLibre Inc stands at 0.08. The total capital return value is set at 0.31. Equity return is now at value 47.36, with 7.93 for asset returns.
Based on MercadoLibre Inc (MELI), the company’s capital structure generated 0.63 points at debt to capital in total, while cash flow to debt ratio is standing at 0.71. The debt to equity ratio resting at 1.7. The interest coverage ratio of the stock is 8.1.
Currently, EBITDA for the company is 2.23 billion with net debt to EBITDA at 1.17. When we switch over and look at the enterprise to sales, we see a ratio of 5.47. The receivables turnover for the company is 2.23for trailing twelve months and the total asset turnover is 0.87. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.28.
Conclusion
To sum up, MercadoLibre Inc (MELI) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
