MercadoLibre, Inc. (MELI) Stock: Here’s What’s Happening

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MercadoLibre, Inc. (MELI) is working its way for to the top in the market in today’s trading session. The stock, focused on the service space, is currently trading at $497.37 after heading up -1.41% so far today. In terms of service sector stocks, there are several aspects that have the ability to generate gains in the market. News is one of the most common reasons for movement. Here are the recent stories associated with MELI:

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Mar-20-19 11:41AM 2 Fintech Stocks on Our Radar Now
09:15AM Fed Takes Center Stage as Stocks Take a Break
Mar-19-19 07:19AM [$$] Argentinian Company Wants to Build the Amazon of Latin America
Mar-18-19 09:30AM ASOMY vs. MELI: Which Stock Is the Better Value Option?
Mar-17-19 11:00AM MercadoLibre green lights crypto ban following PayPal investment

Nonetheless, when making a decision with regard to investing, prospective investors should look at much more than just news, especially in the ever highly complex service industry. Here’s what’s happening with MercadoLibre, Inc..

How MELI Has Been Trending

Although a move up in a single session, like the move that we’re seeing from MercadoLibre, Inc. may make some investors upset, a single session move alone should not be the reason for a decision to, or not to, invest in a company. It is generally a good idea to take a look at trends just a single trading session. When it comes to MELI, below are the returns that we’ve seen:

  • Past Seven Days – Throughout the last five trading sessions, MELI has seen a change in price in the amount of 1.77%.
  • Past Month – The return on investment from MercadoLibre, Inc. over the last 30 days comes to 36.27%.
  • Past 3 Months – In the past three months, the company has produced a ROI that comes to 59.21%
  • Past Six Months – In the past six months, we’ve seen a change of 57.49% from the company.
  • YTD – Since the open of this year MELI has generated a return of 69.84%.
  • Full Year – Lastly, over the last full year, we have seen performance in the amount of 37.45% out of MELI. Over this period of time, the stock has sold at a high of -3.40% and a low price of 93.14%.

Key Ratios

Looking at a few ratios associated with a stock can give investors a view of how dangerous and/or potentially profitable a pick might be. Here are a few of the most important ratios to consider when looking at MELI.

Short Ratio – The short ratio is a tool that’s used by investors to measure the level of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is headed for the top. Across the sector, strong service stocks can come with a lower short ratio. However, we also see quite a few short squeezes in the industry. Nonetheless, in regard to MercadoLibre, Inc., it’s short ratio comes to 4.88.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they mature based on quick assets or current assets. do have positive quick and current ratios. As far as MELI, the quick and current ratios total up to 1.30 and 1.30 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price. In the case of MercadoLibre, Inc., the book to share value ratio is 7.45.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. As it relates to MELI, the cash to share value ratio works out to 19.75.

What Are Big Money Players Doing With MercadoLibre, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in MELI, here’s what we’re seeing:

Institutions own 96.00% of the company. Institutional interest has moved by -2.26% over the past three months. When it comes to insiders, those who are close to the company currently own 9.16% percent of MELI shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Analyst Opinions Of MercadoLibre, Inc.

While it’s not a good idea to blindly follow the opinions of analysts, it is a smart idea to use their analysis when validating your own due diligence before making investment decisions in the service industry. Below you’ll find the recent moves that we’ve seen from analysts when it comes to MELI.

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Mar-15-19 Downgrade Stifel Buy → Hold
Mar-08-19 Downgrade Susquehanna Neutral → Negative
Feb-05-19 Resumed Goldman Buy
Dec-18-18 Initiated KeyBanc Capital Mkts Sector Weight
Aug-22-18 Upgrade Stifel Hold → Buy $380

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $2.74. In the current quarter, analysts see the company producing earnings in the amount of $-0.13. Over the last 5 years, MELI has generated revenue in the amount of $25.00% with earnings coming in at -18.20%. On a quarter over quarter basis, earnings have seen movement of 96.70% and revenue has seen movement of 19.50%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 45.67M shares of MercadoLibre, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, MELI has a float of 40.99M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to MELI, the short percent of the float is 8.39%.

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