MercadoLibre Inc (MELI): A Technical Analysis

MercadoLibre Inc (NASDAQ: MELI) has a higher price-to-earnings ratio of 79.68x compared to its average ratio. MELI has 36-month beta value of 1.66. Analysts have mixed views on the stock, with 15 analysts rating it as a “buy,” 6 as “overweight,” 3 as “hold,” and 0 as “sell.”

The public float for MELI is 47.00M, and currently, short sellers hold a 1.35% ratio of that float. The average trading volume of MELI on February 21, 2025 was 372.97K shares.

MELI) stock’s latest price update

The stock of MercadoLibre Inc (NASDAQ: MELI) has increased by 7.01 when compared to last closing price of 2110.47.Despite this, the company has seen a gain of 9.31% in its stock price over the last five trading days. fool.com reported 2025-02-21 that Collectively, Wall Street analysts have issued more than 12,000 individual ratings on stocks in the S&P 500. By aggregating the median fair value estimates on every company, FactSet Research builds what is known as a “bottom-up” target price for the entire index.

MELI’s Market Performance

MercadoLibre Inc (MELI) has seen a 9.31% rise in stock performance for the week, with a 24.19% gain in the past month and a 17.87% surge in the past quarter. The volatility ratio for the week is 2.96%, and the volatility levels for the past 30 days are at 2.93% for MELI. The simple moving average for the past 20 days is 12.87% for MELI’s stock, with a 20.95% simple moving average for the past 200 days.

Analysts’ Opinion of MELI

Many brokerage firms have already submitted their reports for MELI stocks, with New Street repeating the rating for MELI by listing it as a “Buy.” The predicted price for MELI in the upcoming period, according to New Street is $2300 based on the research report published on January 30, 2025 of the current year 2025.

Raymond James, on the other hand, stated in their research note that they expect to see MELI reach a price target of $2250. The rating they have provided for MELI stocks is “Strong Buy” according to the report published on January 21st, 2025.

Redburn Atlantic gave a rating of “Buy” to MELI, setting the target price at $2800 in the report published on October 11th of the previous year.

MELI Trading at 20.71% 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 able to rebound, for now settling with 4.47% of gains for the given period.

Volatility was left at 2.93%, however, over the last 30 days, the volatility rate increased by 2.96%, as shares surge +23.77% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +16.24% upper at present.

During the last 5 trading sessions, MELI rose by +9.55%, which changed the moving average for the period of 200-days by +38.81% in comparison to the 20-day moving average, which settled at $2,001.15. In addition, MercadoLibre Inc saw 32.82% 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 Calemzuk Emiliano, who sale 50 shares at the price of $1984.98 back on Nov 29 ’24. After this action, Calemzuk Emiliano now owns 238 shares of MercadoLibre Inc, valued at $99,249 using the latest closing price.

Calemzuk Emiliano, the Director of MercadoLibre Inc, proposed sale 50 shares at $2084.60 during a trade that took place back on Nov 27 ’24, which means that Calemzuk Emiliano is holding shares at $104,230 based on the most recent closing price.

Stock Fundamentals for MELI

Current profitability levels for the company are sitting at:

  • 0.11 for the present operating margin
  • 0.45 for the gross margin

The net margin for MercadoLibre Inc stands at 0.08. The total capital return value is set at 0.25. Equity return is now at value 42.62, with 7.42 for asset returns.

Based on MercadoLibre Inc (MELI), the company’s capital structure generated 0.61 points at debt to capital in total, while cash flow to debt ratio is standing at 0.91. The debt to equity ratio resting at 1.58. The interest coverage ratio of the stock is 10.36.

Currently, EBITDA for the company is 2.29 billion with net debt to EBITDA at 1.6. When we switch over and look at the enterprise to sales, we see a ratio of 6.44. The receivables turnover for the company is 85.31for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.25.

Conclusion

To put it simply, MercadoLibre Inc (MELI) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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