Mercadolibre (NASDAQ:MELI) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “MercadoLibre is currently grappling with margin compression due to increased investments toward free shipping in Brazil, Mexico, Chile and Colombia. This makes us increasingly cautious about the company's future profitability. Increased investments will continue to be a major headwind in the fourth quarter. However, top-line growth continuous, driven by solid momentum across all the key performance metrics. Mercadolibre continues to prudently invest in free shipping, loyalty, product, technology and customer acquisition initiatives, which, in turn, boosts traffic and conversions in its marketplaces. The company’s mobile initiatives are also delivering results. In the past 12 months, the company has outperformed the industry it belongs to.”

Other equities research analysts have also recently issued reports about the company. Susquehanna Bancshares cut their price target on Mercadolibre from $275.00 to $230.00 in a research note on Friday, October 13th. BidaskClub upgraded Mercadolibre from a “hold” rating to a “buy” rating in a research note on Thursday, December 14th. Piper Jaffray Companies reiterated a “buy” rating and issued a $268.00 price target on shares of Mercadolibre in a research note on Monday, October 23rd. KeyCorp reiterated a “buy” rating and issued a $290.00 price target on shares of Mercadolibre in a research note on Tuesday, October 17th. Finally, Stifel Nicolaus reiterated a “buy” rating and issued a $275.00 price target on shares of Mercadolibre in a research note on Wednesday, October 4th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $276.98.

Shares of Mercadolibre (NASDAQ MELI) traded up $9.92 during trading hours on Tuesday, hitting $340.79. The stock had a trading volume of 491,200 shares, compared to its average volume of 456,100. Mercadolibre has a 12 month low of $172.61 and a 12 month high of $341.47. The company has a market capitalization of $14,940.00, a PE ratio of 113.22, a PEG ratio of 4.61 and a beta of 2.05. The company has a current ratio of 1.44, a quick ratio of 1.43 and a debt-to-equity ratio of 0.76.

Mercadolibre (NASDAQ:MELI) last issued its quarterly earnings data on Thursday, November 2nd. The company reported $0.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.07. Mercadolibre had a return on equity of 34.78% and a net margin of 10.91%. The company had revenue of $370.66 million during the quarter, compared to analysts’ expectations of $347.29 million. During the same quarter in the previous year, the company posted $0.88 earnings per share. The business’s revenue was up 60.6% on a year-over-year basis. analysts forecast that Mercadolibre will post 2.42 earnings per share for the current year.

In other news, Director Alejandro Nicolas Aguzin acquired 10,000 shares of the stock in a transaction on Monday, November 27th. The stock was acquired at an average cost of $274.47 per share, for a total transaction of $2,744,700.00. Following the completion of the transaction, the director now directly owns 10,000 shares in the company, valued at $2,744,700. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. 0.36% of the stock is owned by insiders.

Several large investors have recently made changes to their positions in MELI. Rhumbline Advisers acquired a new position in shares of Mercadolibre during the second quarter worth $662,000. Bank of New York Mellon Corp increased its holdings in shares of Mercadolibre by 54.0% during the second quarter. Bank of New York Mellon Corp now owns 41,317 shares of the company’s stock worth $10,365,000 after buying an additional 14,491 shares in the last quarter. Pacer Advisors Inc. acquired a new position in shares of Mercadolibre during the second quarter worth $146,000. Cambridge Investment Research Advisors Inc. acquired a new position in shares of Mercadolibre during the second quarter worth $351,000. Finally, Keybank National Association OH increased its holdings in shares of Mercadolibre by 44.7% during the second quarter. Keybank National Association OH now owns 1,780 shares of the company’s stock worth $447,000 after buying an additional 550 shares in the last quarter. Institutional investors own 89.44% of the company’s stock.

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About Mercadolibre

MercadoLibre, Inc is an e-commerce company. The Company enables commerce through its marketplace platform in Latin America, which is designed to provide users with a portfolio of services to facilitate commercial transactions. Its geographic segments are Brazil, Argentina, Mexico Venezuela and Other Countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America).

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