Meta Platforms (NASDAQ:META) Trading Up 8.8% – Time to Buy?

Meta Platforms, Inc. (NASDAQ:META) shares shot up 8.8% during mid-day trading on Wednesday . The company traded as high as $628.28 and last traded at $612.91. 45,078,607 shares changed hands during trading, an increase of 172% from the average session volume of 16,566,590 shares. The stock had previously closed at $563.29.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta’s reported cloud business could turn surplus AI capacity into a new source of revenue, giving investors a clearer path to monetizing its massive infrastructure spending. Reuters: Zuckerberg says AI agent development going slower than expected
• Positive Sentiment: Wall Street commentary has been upbeat, with some analysts and media reports arguing the AI compute strategy could materially boost revenue and support a higher valuation. CNBC: Meta’s push into cloud computing means Wall Street has to prepare for lower margins
• Neutral Sentiment: Meta is still facing execution risk: CEO Mark Zuckerberg said AI agents have progressed more slowly than expected, showing the company’s AI ambitions are still early and not yet proven. Reuters: Zuckerberg says AI agent development going slower than expected
• Negative Sentiment: India’s request to delay WhatsApp username rollout over fraud concerns could slow one of Meta’s messaging monetization and privacy initiatives in a key market. TechXplore: India asks Meta to hold WhatsApp username rollout over fraud fears

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Mizuho cut their price target on shares of Meta Platforms from $850.00 to $835.00 and set an “outperform” rating on the stock in a research report on Tuesday, May 5th. Arete Research set a $735.00 price objective on Meta Platforms and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Barclays lifted their target price on Meta Platforms from $800.00 to $830.00 and gave the stock an “overweight” rating in a report on Thursday, April 30th. Guggenheim decreased their target price on Meta Platforms from $850.00 to $800.00 and set a “buy” rating for the company in a research note on Thursday, April 30th. Finally, Raymond James Financial raised Meta Platforms from an “underperform” rating to an “outperform” rating in a research report on Tuesday, June 2nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $840.64.

Meta Platforms Stock Performance

The company has a quick ratio of 2.35, a current ratio of 2.35 and a debt-to-equity ratio of 0.24. The firm has a market capitalization of $1.47 trillion, a P/E ratio of 21.19, a P/E/G ratio of 1.08 and a beta of 1.25. The stock has a fifty day moving average of $604.62 and a 200-day moving average of $628.52.

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

Meta Platforms Dividend Announcement

The business 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 yield of 0.4%. Meta Platforms’s dividend payout ratio is presently 7.63%.

Insider Buying and Selling

In other news, CFO Susan J. Li sold 9,195 shares of the company’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $607.84, for a total transaction of $5,589,088.80. Following the completion of the transaction, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at approximately $8,014,978.24. This represents a 41.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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. Also, insider Curtis J. Mahoney sold 2,079 shares of Meta Platforms stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $609.92, for a total transaction of $1,268,023.68. Following the completion of the sale, the insider directly 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 39,013 shares of company stock worth $24,115,999 in the last 90 days. 13.53% of the stock is owned by company insiders.

Institutional Investors Weigh In On Meta Platforms

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in META. RHL Group LLC acquired a new position in Meta Platforms during the 4th quarter valued at about $28,000. Strategic Wealth Advisors LLC purchased a new position in shares of Meta Platforms during the fourth quarter worth about $29,000. Axiom Investment Management LLC purchased a new position in shares of Meta Platforms in the 1st quarter valued at approximately $36,000. Safe Harbor Fiduciary LLC acquired a new position in shares of Meta Platforms during the 4th quarter worth $42,000. Finally, Bayban lifted its stake in shares of Meta Platforms by 100.0% during the first 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 period. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

About Meta Platforms

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.