Mercadolibre Inc Can Burn Your Long Portfolio. Option Traders Are Bearish

 Mercadolibre Inc Can Burn Your Long Portfolio. Option Traders Are Bearish

In today’s session Mercadolibre Inc (MELI) recorded an unusually high (512) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious MELI decrease. With 512 contracts traded and 734 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: MELI161021P00160000 closed last at: $0.95 or 20.8% down. About 131,609 shares traded hands. Mercadolibre Inc (NASDAQ:MELI) has risen 48.33% since March 15, 2016 and is uptrending. It has outperformed by 42.84% the S&P500.

Analysts await Mercadolibre Inc (NASDAQ:MELI) to report earnings on November, 2. They expect $0.75 earnings per share, 0.00% or $0.00 from last year’s $0.75 per share. MELI’s profit will be $33.30 million for 56.01 P/E if the $0.75 EPS becomes a reality. After $0.74 actual earnings per share 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. $185 is the highest target while $120 is the lowest. The $157.60 average target is -6.21% below today’s ($168.04) stock price. MercadoLibre has been the topic of 12 analyst reports since August 6, 2015 according to StockzIntelligence Inc. Stifel Nicolaus maintained Mercadolibre Inc (NASDAQ:MELI) on Thursday, October 6 with “Hold” rating. JP Morgan upgraded the stock to “Overweight” rating in Friday, September 2 report. On Monday, May 16 the stock rating was maintained by JP Morgan with “Neutral”. The firm earned “Hold” rating on Wednesday, March 2 by HSBC. The firm has “Neutral” rating by Goldman Sachs given on Tuesday, August 9. Cowen & Co initiated it with “Market Perform” rating and $120 target price in Monday, April 25 report. Citigroup downgraded Mercadolibre Inc (NASDAQ:MELI) on Monday, September 28 to “Sell” rating. The stock of Mercadolibre Inc (NASDAQ:MELI) has “Overweight” rating given on Friday, August 5 by Piper Jaffray. The company was maintained on Monday, March 14 by JP Morgan.

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 Q2 2016. Its down 0.41, from 1.41 in 2016Q1. The ratio fall, 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.
Moreover, Everpoint Asset Management Ltd Limited Liability Company has 0.14% invested in Mercadolibre Inc (NASDAQ:MELI) for 50,000 shares. Products Prtn Lc last reported 0.58% of its portfolio in the stock. State Of New Jersey Common Pension Fund D holds 76,477 shares or 0.05% of its portfolio. Boston Private Wealth Lc accumulated 10,430 shares or 0.06% of the stock. Comerica Commercial Bank last reported 47,780 shares in the company. First Mercantile owns 10,200 shares or 0.18% of their US portfolio. Creative Planning has invested 0% of its portfolio in Mercadolibre Inc (NASDAQ:MELI). Moreover, Jennison Ltd Liability Corp has 0.05% invested in Mercadolibre Inc (NASDAQ:MELI) for 353,461 shares. Massachusetts Financial Serv Communication Ma holds 0% or 2,793 shares in its portfolio. Signaturefd Ltd Llc accumulated 0% or 4 shares. Jpmorgan Chase, a New York-based fund reported 146,366 shares. Ahl Prtn Llp accumulated 0.02% or 3,240 shares. Geode Mngmt Ltd Co holds 17,729 shares or 0% of its portfolio. Next Fincl Group Inc last reported 25 shares in the company. Telemus Cap Ltd Company accumulated 1,534 shares or 0.03% of the stock.

Insider Transactions: Since August 9, 2016, the stock had 0 insider buys, and 4 selling transactions for $2.25 million net activity. 786 shares with value of $134,650 were sold by Melamud Marcelo on Monday, August 15. Arnt Pedro sold $504,810 worth of stock. Rabinovich Daniel also sold $1.03 million worth of Mercadolibre Inc (NASDAQ:MELI) shares. $583,115 worth of shares were sold by SPENCE A MICHAEL on Tuesday, August 9.

MercadoLibre, Inc. hosts an online commerce platform in Latin America, which is focused on enabling e-commerce and its related services. The company has a market cap of $7.46 billion. The Firm provides a portfolio of services facilitating e-commerce transactions. It has a 56.77 P/E ratio. 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.

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.

More 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 Livetradingnews.com published the news titled: “Mercadolibre Inc(NASDAQ:MELI) Trending Below Average” on October 14, 2016. Seekingalpha.com‘s news article titled: “MercadoLibre Is Unstoppable” with publication date: October 06, 2016 was also an interesting one.

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