Dearborn Partners LLC Makes New $711,000 Investment in Meta Platforms, Inc. $META

Key Points

• Dearborn Partners initiated a Meta Platforms position worth approximately $711,000 by purchasing 1,263 shares in the second quarter. Institutional investors own 79.91% of Meta, with several other funds also increasing their holdings.
• Wall Street sentiment remains positive overall, with Meta carrying a “Moderate Buy” consensus rating and an average price target of $788.88. JPMorgan recently upgraded the stock to “overweight” and raised its target to $820.
• Investors face potential risks from elevated AI infrastructure spending, sharply lower free cash flow, and insider selling; executives sold 81,758 shares worth about $51.2 million in the last quarter.

Dearborn Partners LLC acquired a new stake in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 1,263 shares of the social networking company's stock, valued at approximately $711,000.

Several other hedge funds have also added to or reduced their stakes in the stock. Fairtree Asset Management Pty Ltd increased its holdings in Meta Platforms by 18.6% in the 2nd quarter. Fairtree Asset Management Pty Ltd now owns 18,777 shares of the social networking company's stock worth $10,577,000 after buying an additional 2,939 shares in the last quarter. Madison Wealth Partners Inc lifted its stake in Meta Platforms by 33.6% during the 2nd quarter. Madison Wealth Partners Inc now owns 3,031 shares of the social networking company's stock valued at $1,707,000 after acquiring an additional 763 shares during the period. Sone Capital Management LLC lifted its stake in Meta Platforms by 38.2% during the 2nd quarter. Sone Capital Management LLC now owns 16,059 shares of the social networking company's stock valued at $9,046,000 after acquiring an additional 4,440 shares during the period. Lakewood Capital Management LP boosted its holdings in shares of Meta Platforms by 63.7% during the 2nd quarter. Lakewood Capital Management LP now owns 115,985 shares of the social networking company's stock valued at $65,333,000 after acquiring an additional 45,130 shares during the last quarter. Finally, Abbot Financial Management Inc. boosted its holdings in shares of Meta Platforms by 53.5% during the 2nd quarter. Abbot Financial Management Inc. now owns 2,845 shares of the social networking company's stock valued at $1,603,000 after acquiring an additional 991 shares during the last quarter. 79.91% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, COO Javier Olivan sold 3,348 shares of Meta Platforms stock in a transaction on Monday, July 6th. The stock was sold at an average price of $600.97, for a total transaction of $2,012,047.56. Following the transaction, the chief operating officer directly owned 9,498 shares in the company, valued at approximately $5,708,013.06. The trade was a 26.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 20,000 shares of the business's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $650.28, for a total value of $13,005,600.00. Following the sale, the insider directly owned 244,516 shares of the company's stock, valued at $159,003,864.48. This represents a 7.56% 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. Insiders sold 81,758 shares of company stock worth $51,214,020 in the last quarter. Company insiders own 13.53% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on META shares. Weiss Ratings downgraded shares of Meta Platforms from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. JPMorgan Chase & Co. raised Meta Platforms from a "neutral" rating to an "overweight" rating and increased their price target for the company from $640.00 to $820.00 in a report on Thursday, September 10th. Wolfe Research restated an "outperform" rating and issued a $700.00 price target on shares of Meta Platforms in a research note on Thursday, July 30th. Bank of America cut their price objective on Meta Platforms from $835.00 to $810.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Finally, Phillip Securities upgraded Meta Platforms to a "strong-buy" rating in a research report on Monday, August 3rd. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, Meta Platforms presently has an average rating of "Moderate Buy" and an average price target of $788.88.

Meta Platforms News Roundup

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

Meta Platforms Price Performance

Shares of META stock opened at $665.75 on Monday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. Meta Platforms, Inc. has a 12 month low of $520.26 and a 12 month high of $790.80. The stock has a market cap of $1.70 trillion, a P/E ratio of 25.08, a P/E/G ratio of 1.16 and a beta of 1.25. The company has a 50 day simple moving average of $606.33 and a two-hundred day simple moving average of $609.48.

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

Meta Platforms Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Monday, September 21st will be issued a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Monday, September 21st. Meta Platforms's dividend payout ratio (DPR) is currently 7.91%.

Meta Platforms Company 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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