Hedge Funds Trim MercadoLibre Stake by 277,560 Shares

Hedge funds have reduced their holdings of MercadoLibre Inc. (MELI) by 277,560 shares, a 1.27% decline, between December 31, 2023, and March 31, 2024, potentially signaling a shift in investor sentiment towards the Latin American e-commerce giant, which has reported strong financial results and received optimistic analyst ratings." This description focuses on the primary topic of hedge fund holdings, the main entity of MercadoLibre Inc., the context of the Latin American e-commerce market, and the significant actions and implications of the reduced holdings. The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as a graph showing the decline in hedge fund holdings or an image of MercadoLibre's logo with a subtle hint of uncertainty or caution.

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Bijay Laxmi
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Hedge Funds Trim MercadoLibre Stake by 277,560 Shares

Hedge Funds Trim MercadoLibre Stake by 277,560 Shares

Hedge funds have reduced their holdings of MercadoLibre Inc (MELI) by 277,560 shares, a 1.27% decline, between the December 31, 2023 and March 31, 2024 reporting periods. The total number of shares held by hedge funds decreased from 21,779,661 to 21,502,101 during this time frame.

Why this matters: The reduction in hedge fund holdings of MercadoLibre could signal a shift in investor sentiment towards the company, potentially impacting its stock performance and influencing the broader e-commerce market. As a leading player in Latin American e-commerce, MercadoLibre's fortunes can have far-reaching implications for the region's digital economy.

According to the latest 13F filings for the March 31, 2024 reporting period, 19 hedge funds held positions in MercadoLibre. While six funds increased their stakes and three established new positions, eight funds decreased their holdings. Notable transactions include Nicholas Investment Partners LP purchasing a new stake of 1,454 shares valued at approximately $2.285 million and Mitsubishi UFJ Asset Management Co. Ltd. raising its holdings by 4% to 22,984 shares worth $34.476 million after buying an additional 879 shares.

MercadoLibre's stock has experienced mixed performance recently. MELI shares traded up 0.4% to hit $1,683.91, with a volume of 322,787 shares compared to its average volume of 403,149. The company has a market capitalization of $85.37 billion, a price-to-earnings ratio of 75.38, a PEG ratio of 1.15, and a beta of 1.45. MercadoLibre's 52-week low stands at $1,063.02, with a 52-week high of $1,825.00.

The e-commerce giant reported strong financial results for the latest quarter. MercadoLibre posted earnings per share of $6.78, surpassing analysts' consensus estimates of $6.64 by $0.14. The company generated revenue of $4.33 billion during the quarter, exceeding the consensus estimate of $3.84 billion. Sell-side analysts predict that MercadoLibre will post earnings per share of $33.96 for the current fiscal year.

Several equities analysts have recently weighed in on MercadoLibre. DZ Bank upgraded MELI from a hold rating to a buy rating and set a price target of $1,685.00. Barclays raised their price objective on the stock from $1,800.00 to $2,000.00 and gave the company an overweight rating. UBS Group lowered their target price from $1,900.00 to $1,800.00 while maintaining a buy rating. Citigroup reduced their price target on MercadoLibre from $1,990.00 to $1,940.00 and assigned a buy rating.

MercadoLibre currently has a consensus rating of "Moderate Buy" and an average price target of $1,820.38 among analysts. The reduction in hedge fund holdings, coupled with the company's strong financial performance and optimistic analyst ratings, suggests a mixed sentiment towards MercadoLibre. As the leading e-commerce and fintech platform in Latin America, MercadoLibre's future prospects will likely depend on its ability to maintain growth and profitability in the dynamic digital commerce landscape.

Key Takeaways

  • Hedge funds reduced MercadoLibre holdings by 277,560 shares (1.27%) between Dec 31, 2023, and Mar 31, 2024.
  • 19 hedge funds held positions in MercadoLibre, with 6 increasing stakes and 8 decreasing holdings.
  • MercadoLibre's stock has experienced mixed performance, with a current market capitalization of $85.37 billion.
  • The company reported strong financial results, with earnings per share of $6.78, surpassing analysts' estimates.
  • MercadoLibre has a consensus rating of "Moderate Buy" and an average price target of $1,820.38 among analysts.