Meta Platforms (NASDAQ:META) Trading Up 3% – Still a Buy?

Meta Platforms, Inc. (NASDAQ:META) shares were up 3% during mid-day trading on Monday . The stock traded as high as $603.58 and last traded at $600.29. Approximately 17,059,060 shares traded hands during mid-day trading, an increase of 3% from the average daily volume of 16,613,209 shares. The stock had previously closed at $582.90.

More Meta Platforms News

Here are the key news stories impacting Meta Platforms this week:

• Positive Sentiment: Several articles argue Meta’s heavy AI spending could pay off, with comparisons to SpaceX-style “invest now, monetize later” strategies and a potential new cloud-computing business built on excess AI infrastructure. Meta Platforms’ New Cloud Business Could Be a Game Changer for Its Stock
• Positive Sentiment: Investor commentary remains constructive ahead of Meta’s earnings, with some analysts and contributors saying the recent pullback is a buying opportunity and highlighting continued strength in the core ads business. What you need to know ahead of Meta Platforms’ earnings release
• Positive Sentiment: Meta’s Threads app continues to gain traction, with one report saying it has reached 500 million users, reinforcing the company’s ability to build scale beyond Facebook and Instagram. How Meta’s Threads Became as Popular as X
• Neutral Sentiment: Articles about Meta restricting engineers from using Anthropic’s Claude and OpenAI’s Codex suggest tighter internal AI controls, but the market impact is unclear. Here’s Why Meta Platforms, Inc. (META) is Restricting Engineers from Using Anthropic’s Claude
• Negative Sentiment: Meta is facing fresh scrutiny in India after reports that Instagram approved or hosted child abuse-related ads/content, prompting government demands to remove the material. That raises regulatory and brand-risk concerns. Meta’s woes deepen in India as child abuse ads on Instagram draw government ire
• Negative Sentiment: Another AI-related article notes rising competition in smart glasses and consumer hardware, including a new rival backed by major Chinese investors, which could pressure Meta’s wearables ambitions over time. Apple veteran’s Chinese smart-glasses firm becomes unicorn as Tencent, Meituan fund rival to Meta

Analyst Ratings Changes

A number of equities analysts have weighed in on META shares. Wolfe Research reduced their price target on Meta Platforms from $850.00 to $800.00 and set an “outperform” rating for the company in a research report on Friday, April 10th. Stifel Nicolaus reduced their target price on shares of Meta Platforms from $805.00 to $780.00 and set a “buy” rating for the company in a report on Friday, May 1st. Piper Sandler began coverage on shares of Meta Platforms in a research note on Tuesday, June 2nd. They issued an “overweight” rating on the stock. Barclays increased their price objective on shares of Meta Platforms from $800.00 to $830.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Finally, Bank of America reduced their price target on Meta Platforms from $885.00 to $820.00 and set a “buy” rating for the company in a research report on Monday, April 20th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $840.64.

Meta Platforms Price Performance

The company has a 50 day moving average price of $602.79 and a 200 day moving average price of $628.06. The company has a current ratio of 2.35, a quick ratio of 2.35 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $1.52 trillion, a P/E ratio of 21.82, a P/E/G ratio of 1.03 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last issued its quarterly earnings data on Wednesday, April 29th. The social networking company reported $10.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.67 by $3.77. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The company had revenue of $56.31 billion during the quarter, compared to analysts’ expectations of $55.56 billion. During the same quarter in the previous year, the company posted $6.43 earnings per share. The business’s revenue was up 33.1% on a year-over-year basis. On average, equities analysts predict that Meta Platforms, Inc. will post 29.46 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were given a dividend of $0.525 per share. The ex-dividend date was Monday, June 15th. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. Meta Platforms’s dividend payout ratio (DPR) is currently 7.63%.

Insider Activity

In other Meta Platforms news, insider Curtis J. Mahoney sold 2,079 shares of the firm’s stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $609.92, for a total value of $1,268,023.68. Following the sale, the insider owned 1,118 shares of the company’s stock, valued at approximately $681,890.56. This trade represents a 65.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan J. Li sold 9,195 shares of the business’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $607.84, for a total value of $5,589,088.80. Following the transaction, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at $8,014,978.24. This trade represents a 41.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 39,013 shares of company stock valued at $24,115,999 in the last three months. Company insiders own 13.53% of the company’s stock.

Institutional Trading of Meta Platforms

Hedge funds have recently added to or reduced their stakes in the stock. RHL Group LLC acquired a new position in shares of Meta Platforms in the fourth quarter valued at approximately $28,000. Strategic Wealth Advisors LLC acquired a new position in Meta Platforms in the 4th quarter valued at approximately $29,000. Niles Investment Management LLC bought a new position in shares of Meta Platforms during the fourth quarter valued at $29,000. Axiom Investment Management LLC acquired a new stake in Meta Platforms in the first quarter valued at $36,000. Finally, Bayban grew its position in shares of Meta Platforms by 100.0% in the 1st quarter. Bayban now owns 70 shares of the social networking company’s stock valued at $40,000 after buying an additional 35 shares during the last quarter. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms Company Profile

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.