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

On Monday, shares of Meta Platforms, Inc. (NASDAQ:META) experienced a decline of 0.9% during mid-day trading. The company's stock fell to as low as $571.04, with the last recorded price at $571.38. During the trading session, a total of 2,402,900 shares changed hands, which is a significant drop of 84% compared to the average session volume of 15,143,795 shares. Previously, the stock had closed at $576.47.

Recent Analyst Price Targets

Several brokerages have recently updated their opinions on Meta Platforms. TD Securities increased their target price from $530.00 to $600.00 in a report dated July 10th. DA Davidson began coverage of Meta Platforms on September 10th, assigning a "buy" rating along with a target price of $600.00. Oppenheimer raised its price target from $525.00 to $615.00, providing the stock with an "outperform" rating on August 1st. KeyCorp followed suit by raising their target from $560.00 to $655.00, giving the stock an "overweight" rating on October 9th. Additionally, Bank of America upgraded its price objective from $563.00 to $630.00, also rating it a "buy." As a result, while two analysts have issued sell ratings, three recommend holding the stock, and a strong majority, thirty-five, advocate for buying, including two strong buy ratings. Collectively, the stock has received an average rating of "Moderate Buy" and a consensus price target of $617.37.

Company Financial Metrics

Meta Platforms exhibits a debt-to-equity ratio of 0.12, showcasing financial stability. Their quick ratio stands at 2.83, and the current ratio is also 2.83. The stock's 50-day simple moving average is $546.53, whereas the 200-day simple moving average is $508.77. With a market capitalization of $1.45 trillion, the company has a P/E ratio of 32.96 and a P/E/G ratio of 1.45. The stock has a beta of 1.22, indicating volatility in relation to the market.

Latest Earnings Announcement

Meta Platforms last shared its quarterly earnings data on July 31st, revealing earnings per share (EPS) of $5.16, surpassing the consensus estimate of $4.70 by $0.46. The company generated revenue of $39.07 billion for the quarter, exceeding analyst expectations of $38.26 billion. Notably, Meta's net margin was 34.34%, and it achieved a return on equity of 34.16%. Compared to the same quarter from the previous year, revenue increased by 22.1%, as EPS rose from $3.23 in the previous period. Analysts expect Meta Platforms, Inc. to report an EPS of 21.37 for the current year.

Dividend Information

The company has also declared a quarterly dividend, which was distributed on September 26th. Investors recorded on September 16th received $0.50 per share, corresponding to an annualized dividend of $2.00 and a yield of 0.35%. The ex-dividend date was September 16th. The dividend payout ratio stands at 11.49%, indicating a prudent distribution of earnings.

Insider Transactions

In recent insider activity, CEO Mark Zuckerberg sold 84 shares of Meta stock on October 14th at an average price of $600.00, amounting to a transaction value of $50,400. Following this sale, Zuckerberg directly owns 518,424 shares, valued at approximately $311,054,400, reflecting a negligible change in his ownership. The sale was disclosed in a submission to the SEC. Additionally, insider Jennifer Newstead sold 905 shares on July 23rd at an average price of $489.80, totaling $443,269. Following her transaction, Newstead now owns 35,130 shares worth around $17,206,674. In the last ninety days, insiders have sold a total of 250,816 shares worth $132,421,828, with corporate insiders holding 13.71% of the stock.

Institutional Investor Activity

Institutional trading has seen significant movements as well. Capital Research Global Investors increased its position in Meta Platforms by 14.5% in the first quarter, accumulating 34,597,001 shares worth over $16.79 billion after adding 4,379,826 shares. Jennison Associates LLC also raised their stake by 24.7%, now owning 13,867,398 shares valued at about $6.73 billion after acquiring an additional 2,748,620 shares. Furthermore, Sustainable Growth Advisers LP bought a new stake valued at approximately $595.15 million during the second quarter. Vanguard Group Inc. slightly increased its position by 0.4%, owning 187,180,393 shares worth nearly $90.89 billion after acquiring an extra 831,047 shares. Institutional investors and hedge funds now control approximately 79.91% of the company's stock.

About Meta Platforms

Meta Platforms, Inc. is engaged in developing products that facilitate connection and sharing among individuals through various platforms, including mobile devices, personal computers, virtual reality headsets, and wearables worldwide. The company operates primarily in two segments: Family of Apps, which includes platforms like Facebook, Instagram, Messenger, and WhatsApp; and Reality Labs, focusing on developing next-generation technologies.

Meta, Stocks, Investment