The stock of Mercadolibre Inc (NASDAQ:MELI) gapped down by $7.75 today and has $155.15 target or 8.00% below today’s $168.64 share price. The 7 months technical chart setup indicates high risk for the $7.39B company. The gap down was reported on Oct, 13 by Barchart.com. If the $155.15 price target is reached, the company will be worth $591.20M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 1.88M shares traded hands or 362.84% up from the average. Mercadolibre Inc (NASDAQ:MELI) has risen 61.39% since March 10, 2016 and is uptrending. It has outperformed by 53.87% the S&P500.
Analysts await Mercadolibre Inc (NASDAQ:MELI) to report earnings on November, 2. They expect $0.75 EPS, 0.00% or $0.00 from last year’s $0.75 per share. MELI’s profit will be $32.87 million for 56.21 P/E if the $0.75 EPS becomes a reality. After $0.74 actual EPS reported by Mercadolibre Inc for the previous quarter, Wall Street now forecasts 1.35% EPS growth.
Mercadolibre Inc (NASDAQ:MELI) Ratings Coverage
Out of 7 analysts covering MercadoLibre (NASDAQ:MELI), 2 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 29% are positive. MercadoLibre has been the topic of 12 analyst reports since August 6, 2015 according to StockzIntelligence Inc. The company was initiated on Monday, April 25 by Cowen & Co. The stock has “Hold” rating given by HSBC on Wednesday, March 2. As per Friday, August 5, the company rating was maintained by Piper Jaffray. The rating was upgraded by JP Morgan on Friday, September 2 to “Overweight”. JP Morgan maintained the shares of MELI in a report on Monday, March 14 with “Neutral” rating. Goldman Sachs initiated Mercadolibre Inc (NASDAQ:MELI) rating on Tuesday, August 9. Goldman Sachs has “Neutral” rating and $170 price target. The firm has “Hold” rating by Stifel Nicolaus given on Thursday, October 6. The rating was maintained by JP Morgan with “Neutral” on Monday, May 16. The rating was downgraded by Citigroup on Monday, September 28 to “Sell”.
According to Zacks Investment Research, “MercadoLibre is the largest online trading platform in Latin America. We are market leaders in e-commerce in each of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela, based on unique visitors and page views. Additionally, we have recently launched online trading platforms in Costa Rica, the Dominican Republic and Panama. With a market of over Five fifty million people and a region with one of the world’s fastest-growing Internet penetration rates, we provide buyers and sellers a robust online trading environment that fosters the development of a large and growing e-commerce community. We offer a technological and commercial solution that addresses the distinctive cultural and geographic challenges of operating an online trading platform in Latin America.”
Insitutional Activity: The institutional sentiment decreased to 1 in 2016 Q2. Its down 0.41, from 1.41 in 2016Q1. The ratio is negative, as 26 funds sold all Mercadolibre Inc shares owned while 66 reduced positions. 35 funds bought stakes while 57 increased positions. They now own 31.31 million shares or 2.81% less from 32.21 million shares in 2016Q1.
J Goldman L P owns 101,550 shares or 0.75% of their US portfolio. The Illinois-based Zacks Investment Management has invested 0.01% in Mercadolibre Inc (NASDAQ:MELI). Moreover, Agf Invs has 0.01% invested in Mercadolibre Inc (NASDAQ:MELI) for 8,517 shares. Envestnet Asset Management last reported 8,979 shares in the company. Signaturefd Ltd Llc, a Georgia-based fund reported 4 shares. Savings Bank Of America Corporation De last reported 565,688 shares in the company. Walleye Trading Limited Liability Co reported 3,556 shares or 0% of all its holdings. Jpmorgan Chase And last reported 0.01% of its portfolio in the stock. Virginia Retirement Sys Et Al accumulated 0% or 2,300 shares. Wells Fargo & Mn has 388,875 shares for 0.02% of their US portfolio. Zevin Asset Management Limited Liability Corp, a Massachusetts-based fund reported 39,250 shares. Morgan Stanley has 1.55 million shares for 0.08% of their US portfolio. Jane Street Grp Ltd last reported 4,001 shares in the company. Fil, a Bermuda-based fund reported 27,868 shares. Seven Eight Cap Llc has 804 shares for 0.04% of their US portfolio.
Insider Transactions: Since August 9, 2016, the stock had 0 insider purchases, and 4 insider sales for $2.25 million net activity. 3,000 shares with value of $504,810 were sold by Arnt Pedro on Tuesday, August 9. Melamud Marcelo sold 786 shares worth $134,650. Shares for $1.03M were sold by Rabinovich Daniel on Friday, August 19. SPENCE A MICHAEL had sold 3,451 shares worth $583,115 on Tuesday, August 9.
More notable recent Mercadolibre Inc (NASDAQ:MELI) news were published by: Bloomberg.com which released: “EBay to Raise More Than $1 Billion Selling Stake in MercadoLibre” on October 13, 2016, also Fool.com with their article: “Is Mercadolibre Inc. a Buy?” published on April 29, 2016, Fool.com published: “Mercadolibre, Inc. Earnings: Rolling With the Venezuelan Punches” on August 05, 2016. More interesting news about Mercadolibre Inc (NASDAQ:MELI) were released by: Fool.com and their article: “Small Cap Low-Risk Pick No. 5: MercadoLibre Inc.” published on April 08, 2016 as well as Seekingalpha.com‘s news article titled: “MercadoLibre Is Unstoppable” with publication date: October 06, 2016.
MELI Company Profile
MercadoLibre, Inc. (MercadoLibre), incorporated on October 15, 1999, hosts an online commerce platform in Latin America, which is focused on enabling e-commerce and its related services. The Firm provides a portfolio of services facilitating e-commerce transactions in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company’s geographic divisions are Brazil, Argentina, Mexico, Venezuela and other countries (including Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Guatemala, Bolivia, Paraguay, Uruguay and the United States of America (real estate classifieds in the State of Florida only). It also operates online commerce platforms in the Dominican Republic, Panama, Bolivia, Guatemala, Paraguay and Portugal. The Firm offers its users an eco-system of over six related e-commerce services: the MercadoLibre Marketplace, The MercadoLibre Classifieds Service, the MercadoPago payments solution, the MercadoLibre Advertising program (MercadoClics), the MercadoShops online Webstores solution and the Mercado Envios shipping service. The Firm also operates a real estate classified platform that covers some areas of State of Florida in the United States.
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