Compass Wealth Management LLC Purchases New Position in Meta Platforms, Inc. $META

Key Points

• Compass Wealth Management initiated a Meta Platforms position of 5,179 shares worth approximately $3.76 million in the third quarter. Institutional investors collectively own about 79.9% of Meta’s outstanding stock.
• Meta exceeded quarterly expectations, reporting $7.40 in EPS and $64.60 billion in revenue, up 26.1% year over year. The company also pays a $0.525 quarterly dividend, equivalent to a 0.3% yield.
• Wall Street remains generally bullish, with a “Moderate Buy” consensus rating and an average price target of $833.12, although several analysts recently lowered their targets.

Compass Wealth Management LLC purchased a new position in Meta Platforms, Inc. (NASDAQ:META - Free Report) in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 5,179 shares of the social networking company's stock, valued at approximately $3,756,000.

Several other hedge funds have also recently modified their holdings of META. Corient Private Wealth LP boosted its holdings in shares of Meta Platforms by 723.1% during the 2nd quarter. Corient Private Wealth LP now owns 8,801,764 shares of the social networking company's stock valued at $4,957,946,000 after acquiring an additional 7,732,446 shares during the last quarter. Jupiter Topco LLC purchased a new position in shares of Meta Platforms during the second quarter valued at approximately $2,948,486,000. State Street Corp raised its holdings in shares of Meta Platforms by 4.0% during the second quarter. State Street Corp now owns 92,033,963 shares of the social networking company's stock valued at $51,841,811,000 after purchasing an additional 3,510,123 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Meta Platforms by 14.6% during the first quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company's stock valued at $12,036,491,000 after purchasing an additional 2,673,494 shares during the last quarter. Finally, Amundi lifted its position in Meta Platforms by 18.1% during the first quarter. Amundi now owns 11,858,972 shares of the social networking company's stock valued at $6,784,873,000 after purchasing an additional 1,815,017 shares during the period. Hedge funds and other institutional investors own 79.91% of the company's stock.

Meta Platforms Stock Performance

NASDAQ:META opened at $612.49 on Thursday. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.30. Meta Platforms, Inc. has a 12-month low of $520.26 and a 12-month high of $779.82. The stock has a 50-day moving average price of $667.08 and a 200 day moving average price of $632.53. The stock has a market capitalization of $1.56 trillion, a P/E ratio of 20.88, a P/E/G ratio of 1.12 and a beta of 1.19.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The social networking company reported $7.40 EPS for the quarter, topping the consensus estimate of $6.54 by $0.86. The business had revenue of $64.60 billion for the quarter, compared to analysts' expectations of $63.34 billion. Meta Platforms had a net margin of 31.15% and a return on equity of 30.73%. The business's quarterly revenue was up 26.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $7.25 EPS. Equities research analysts forecast that Meta Platforms, Inc. will post 28.98 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were issued a $0.5250 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms's payout ratio is 7.16%.

More Meta Platforms News

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

• Positive Sentiment: Meta priced a $25 billion Class A common-stock offering and a $12.5 billion mandatory convertible preferred-stock offering, with proceeds earmarked for its artificial-intelligence infrastructure. The common offering reportedly attracted demand several times greater than the shares available, suggesting institutional interest in Meta’s AI strategy. Meta offering pricing
• Positive Sentiment: Nvidia plans to invest $3 billion in Meta and expand its partnership around Meta’s Muse AI assistant and models. The deal provides third-party validation for Meta’s AI ambitions and may help secure access to Nvidia hardware. Nvidia invests in Meta partnership
• Positive Sentiment: Meta’s core advertising business remains strong: ad impressions increased 10% year over year, average ad prices rose 14%, and AI improvements reportedly lifted app-ad conversions by 9.6%. Early adoption of Muse and new AI experiments such as Waddle World could create future commerce and subscription revenue. Meta AI risk and reward
• Neutral Sentiment: Meta delayed indefinitely the rollout of new commercial terms after publisher objections. The move could reduce near-term conflict but leaves unresolved questions about the company’s relationship with media organizations and use of publisher content. Meta delays commercial terms
• Negative Sentiment: The major concern is dilution: Meta is pursuing nearly $98 billion in equity financing, including new common and convertible preferred securities. Investors appear worried that the funding will reduce per-share value even if it finances long-term AI growth. Meta stock analysis and dilution
• Negative Sentiment: AI investment is weighing heavily on near-term financials. Capital expenditures reached $34.9 billion, producing negative free cash flow of $2.1 billion, while higher spending and legal costs pressured margins. This has led some analysts to downgrade the stock, despite revenue exceeding expectations. Meta AI spending downgrade
• Negative Sentiment: Meta COO Javier Olivan sold shares worth approximately $1.0 million in two transactions. Both sales were executed under a pre-arranged Rule 10b5-1 plan, reducing their significance as a signal of management’s outlook. SEC insider transaction filing

Wall Street Analyst Weigh In

A number of equities research analysts have commented on META shares. Guggenheim reaffirmed a "buy" rating and issued a $850.00 target price on shares of Meta Platforms in a research report on Thursday, October 22nd. Roth Capital lowered their price target on Meta Platforms from $820.00 to $750.00 and set a "buy" rating on the stock in a report on Monday, August 3rd. Daiwa Securities Group lowered their price target on Meta Platforms from $790.00 to $687.00 and set a "buy" rating on the stock in a report on Tuesday, August 4th. Tigress Financial restated a "strong-buy" rating and issued a $945.00 price target (down from $995.00) on shares of Meta Platforms in a research note on Thursday, September 24th. Finally, Robert W. Baird cut their price objective on Meta Platforms from $830.00 to $750.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $833.12.

Insider Activity

In other news, CAO Aaron Anderson sold 3,240 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $618.06, for a total transaction of $2,002,514.40. Following the transaction, the chief accounting officer owned 6,271 shares of the company's stock, valued at approximately $3,875,854.26. This represents a 34.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Zuckerberg sold 27,474 shares of the company's stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $777.44, for a total value of $21,359,386.56. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 150,015 shares of company stock worth $102,464,300. Company insiders own 13.53% of the company's stock.

Meta Platforms Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company's principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.

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