Campbell Newman Asset Management Inc. Sells 1,450 Shares of Meta Platforms, Inc. $META

Key Points

• Campbell Newman Asset Management reduced its Meta position by 33.5%, selling 1,450 shares and retaining 2,878 shares valued at approximately $1.62 million. Institutional investors still own nearly 80% of Meta’s stock.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year and above estimates, but earnings per share of $6.18 missed the $7.19 consensus. The company declared a quarterly dividend of $0.525 per share, or a 0.3% annualized yield.
• Meta’s AI initiatives offer potential catalysts, including strong early adoption of its Muse agent and projected savings from internally developed AI chips, but investors remain concerned about rising AI infrastructure costs, legal scrutiny and insider selling.

Campbell Newman Asset Management Inc. lessened its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 33.5% in the second quarter, according to its most recent filing with the SEC. The firm owned 2,878 shares of the social networking company's stock after selling 1,450 shares during the quarter. Campbell Newman Asset Management Inc.'s holdings in Meta Platforms were worth $1,621,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in META. Field & Main Bank bought a new position in Meta Platforms during the second quarter worth $4,146,000. SPX Gestao de Recursos Ltda bought a new stake in Meta Platforms during the second quarter valued at $13,965,000. Archer Investment Corp bought a new stake in Meta Platforms during the second quarter valued at $3,924,000. Kimelman & Baird LLC grew its holdings in Meta Platforms by 8.0% during the 2nd quarter. Kimelman & Baird LLC now owns 1,109 shares of the social networking company's stock worth $625,000 after acquiring an additional 82 shares during the period. Finally, North Star Asset Management Inc. acquired a new stake in Meta Platforms during the 2nd quarter worth about $9,891,000. Institutional investors own 79.91% of the company's stock.

Meta Platforms Stock Performance

NASDAQ META opened at $665.75 on Monday. The company has a market cap of $1.70 trillion, a price-to-earnings ratio of 25.08, a P/E/G ratio of 1.16 and a beta of 1.25. Meta Platforms, Inc. has a 52 week low of $520.26 and a 52 week high of $790.80. The business has a 50 day moving average price of $606.33 and a 200-day moving average price of $609.48. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32.

Meta Platforms (NASDAQ:META - Get Free Report) last issued its earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The firm had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. During the same period in the previous year, the company earned $7.14 earnings per share. Meta Platforms's revenue for the quarter was up 28.0% compared to the same quarter last year. As a group, equities analysts expect that Meta Platforms, Inc. will post 27.93 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Monday, September 21st will be paid a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Monday, September 21st. Meta Platforms's payout ratio is 7.91%.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta’s Muse personal AI agent reached No. 1 on Apple’s U.S. free-app chart, surpassing ChatGPT roughly one week after launch. Its ability to handle shopping, bookings, email and phone calls could give Meta a significant consumer-AI growth platform and strengthen the case for future subscriptions or commerce revenue. Meta's Muse tops Apple's US free app chart
• Positive Sentiment: Bank of America said Meta’s internally developed MTIA AI chips could save approximately $8.5 billion in 2027 by reducing reliance on third-party processors. Custom silicon could improve the economics of Meta’s expanding AI infrastructure over time. Meta Can Save $8.5 Billion in 2027 by Using Its Own MTIA Chips
• Positive Sentiment: Analyst support and upcoming product announcements remain potential catalysts. Rosenblatt reiterated a Buy rating, while investors are looking ahead to Meta Connect on September 23 for additional AI, glasses and subscription details. Meta Earns Buy Rating from Rosenblatt Securities
• Neutral Sentiment: Muse’s early popularity is encouraging, but analysts disagree on its financial impact. The generous free tier may accelerate adoption while delaying revenue and increasing computing costs; consumer distrust of Meta and the need to provide sensitive account data could also limit paid conversion. Meta’s Muse Agent Has Wall Street Divided on Its AI Potential
• Negative Sentiment: Investors are taking profits after META rose roughly 23%–24% over the past month. Valuation and expectations have risen quickly, increasing sensitivity to any evidence that AI spending will not generate near-term earnings growth.
• Negative Sentiment: Meta’s AI investment program is placing significant pressure on cash flow. Articles highlighted a more than 90% decline in free cash flow as capital expenditures rise, raising concerns about the payback period for data centers, chips and other infrastructure. Meta Versus Oracle: AI Capex Payback Velocity
• Negative Sentiment: Legal and reputational pressure is increasing. A German court held Meta liable for fraudulent third-party ads, while regulators and its Oversight Board criticized safeguards against deepfakes and nonconsensual filming involving its smart glasses. These issues could increase compliance costs and threaten user trust. German Court Rules Meta Liable for Fake Ads
• Negative Sentiment: Chief Product Officer Christopher Cox sold 20,000 shares worth approximately $13.5 million under a pre-arranged Rule 10b5-1 plan. The planned nature reduces the signal, but the sale may still weigh modestly on sentiment. SEC Insider Trading Filing

Analysts Set New Price Targets

A number of brokerages have recently issued reports on META. Truist Financial dropped their price objective on Meta Platforms from $770.00 to $763.00 and set a "buy" rating on the stock in a research note on Thursday, August 27th. BNP Paribas Exane initiated coverage on Meta Platforms in a research note on Tuesday, June 2nd. They set an "outperform" rating for the company. Citigroup reiterated a "buy" rating and issued a $800.00 target price on shares of Meta Platforms in a report on Wednesday. Phillip Securities raised Meta Platforms to a "strong-buy" rating in a research note on Monday, August 3rd. Finally, TD Cowen cut their price target on Meta Platforms from $800.00 to $750.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, Meta Platforms has an average rating of "Moderate Buy" and a consensus target price of $788.88.

Insider Activity

In other news, COO Javier Olivan sold 3,348 shares of Meta Platforms stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $600.97, for a total transaction of $2,012,047.56. Following the completion of the transaction, the chief operating officer directly owned 9,498 shares in the company, valued at $5,708,013.06. This trade represents a 26.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan J. Li sold 9,196 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the sale, the chief financial officer directly owned 13,186 shares of the company's stock, valued at approximately $7,260,343.46. The trade was a 41.09% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 81,758 shares of company stock valued at $51,214,020. 13.53% of the stock is currently owned by insiders.

Meta Platforms Profile

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company's principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

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