Meta Platforms (NASDAQ:META) Stock Price Down 0.9% - Should You Sell?

On Monday, stocks of Meta Platforms, Inc. (NASDAQ:META) experienced a decrease of 0.9% during mid-day trading. The shares hit a low of $571.04 before settling at $571.38. A total of 2,402,900 shares changed hands, which is significantly lower by 84% from the typical trading volume of 15,143,795 shares. The previous closing price was $576.47.

Analysts Set New Price Targets

Recently, several brokerages have provided updates regarding Meta Platforms. TD Securities revised their target price upwards from $530.00 to $600.00 in a report issued on July 10th. DA Davidson began covering shares on September 10th and assigned a 'buy' rating with a target price of $600.00. Oppenheimer increased their target from $525.00 to $615.00 while giving an 'outperform' designation on August 1st. KeyCorp raised their price target from $560.00 to $655.00 with an 'overweight' rating in a report dated October 9th. Bank of America also lifted their target price from $563.00 to $630.00, maintaining a 'buy' rating from their last report on September 26th. In total, two analysts rated the stock as a sell, three as hold, thirty-five as buy, and two as strong buy. The consensus rating is currently classified as 'Moderate Buy' with an average price target of $617.37.

Meta Platforms Price Performance

The financial health of Meta can be illustrated by key ratios: the company’s debt-to-equity ratio is 0.12, and both its quick and current ratios stand at 2.83. The 50-day simple moving average is $546.53, while the 200-day moving average is $508.77. Meta Platforms holds a market capitalization of $1.45 trillion, with a price-to-earnings ratio of 32.96 and a P/E/G ratio of 1.45, and a beta of 1.22.

In the last quarterly earnings announcement from July 31st, Meta Platforms reported earnings per share (EPS) of $5.16, exceeding the estimated $4.70 by $0.46. The revenue for the quarter reached $39.07 billion, surpassing analysts’ expectations of $38.26 billion. The company demonstrated a net margin of 34.34% and a return on equity of 34.16%. Compared to the previous year's quarter, the revenue saw an increase of 22.1%. Analysts generally expect Meta Platforms, Inc. to post EPS of 21.37 for the current year.

Meta Platforms Announces Dividend

The company also declared a quarterly dividend paid on September 26th, with a distribution of $0.50 to shareholders of record as of September 16th. This translates to an annualized dividend of $2.00, resulting in a dividend yield of 0.35%. The ex-dividend date was September 16th, and the current dividend payout ratio is 11.49%.

Insider Buying and Selling at Meta Platforms

In recent insider trading activity, CEO Mark Zuckerberg sold 84 shares on October 14th at an average price of $600.00, totaling $50,400. Post-transaction, he retains ownership of 518,424 shares, valued around $311,054,400, reflecting a negligible decrease in his stock position. This sale was reported through a legal filing with the SEC. Furthermore, insider Jennifer Newstead sold 905 shares on July 23rd for approximately $443,269. Following this transaction, she owns 35,130 shares worth about $17,206,674. In the past 90 days, insiders have sold a total of 250,816 shares, amounting to $132,421,828. Corporate insiders hold 13.71% of the stock.

Institutional Trading of Meta Platforms

A variety of institutional investors have adjusted their positions in Meta Platforms recently. Capital Research Global Investors increased their stake by 14.5% in the first quarter, now owning 34,597,001 shares valued at $16.8 billion. Jennison Associates LLC also increased its ownership by 24.7%, acquiring a total of 13,867,398 shares worth $6.73 billion. Sustainable Growth Advisers LP purchased a new stake valued at approximately $595.15 million during the second quarter. Global Assets Advisory LLC invested $515.38 million in Meta during the first quarter. Vanguard Group Inc. grew its holding by 0.4%, now owning 187,180,393 shares worth $90.89 billion. Overall, institutional investors and hedge funds own 79.91% of Meta's outstanding shares.

About Meta Platforms

Meta Platforms, Inc. specializes in developing products that facilitate connections and sharing experiences through mobile devices, personal computers, virtual reality headsets, and wearables. The company operates via two key segments: Family of Apps and Reality Labs. The Family of Apps segment includes popular platforms such as Facebook, Instagram, Messenger, and WhatsApp, catering to various communication and social sharing needs.

In conclusion, while Meta Platforms’ recent stock price has faced a slight decline, analysts remain optimistic about its future prospects. Investors should carefully consider their strategies moving forward, particularly in light of the company's strong earnings and growth potential. Each investment decision should be based on individual risk tolerance and market analysis.

Meta, Stocks, Investment