Envestnet Portfolio Solutions Inc. Boosts Stake in Meta Platforms, Inc. $META

Key Points

• Envestnet Portfolio Solutions increased its Meta stake by 6.4% in the second quarter, adding 7,184 shares to reach 119,557 shares valued at approximately $67.3 million. Institutional investors collectively own nearly 80% of Meta’s stock.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year, but earnings per share of $6.18 fell short of the $7.19 analyst consensus. The company also declared a $0.525 quarterly dividend, equivalent to a 0.3% annualized yield.
• Analysts maintain a generally positive view, with Meta carrying a “Moderate Buy” consensus rating and an average price target of $787.86. Investor focus remains on monetizing its AI initiatives, while concerns include heavy AI spending, insider selling and growing competition in personal AI agents.

Envestnet Portfolio Solutions Inc. lifted its holdings in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 6.4% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 119,557 shares of the social networking company's stock after acquiring an additional 7,184 shares during the period. Envestnet Portfolio Solutions Inc.'s holdings in Meta Platforms were worth $67,330,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in META. Envestnet Asset Management Inc. grew its holdings in shares of Meta Platforms by 2.0% in the second quarter. Envestnet Asset Management Inc. now owns 3,236,516 shares of the social networking company's stock valued at $1,823,088,000 after purchasing an additional 64,136 shares in the last quarter. State Street Corp raised its stake in 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 in the last quarter. Silicon Valley Capital Partners lifted its position in Meta Platforms by 13.9% during the second quarter. Silicon Valley Capital Partners now owns 74,799 shares of the social networking company's stock valued at $42,134,000 after purchasing an additional 9,114 shares during the last quarter. Premier Financial Group bought a new position in shares of Meta Platforms in the 2nd quarter valued at about $96,000. Finally, Wellington Altus USA Inc. grew its position in Meta Platforms by 8.0% in the second quarter. Wellington Altus USA Inc. now owns 1,069 shares of the social networking company's stock worth $612,000 after acquiring an additional 79 shares in the last quarter. Institutional investors own 79.91% of the company's stock.

Meta Platforms Price Performance

META opened at $725.93 on Friday. The business has a fifty day moving average of $622.86 and a 200 day moving average of $615.28. The stock has a market cap of $1.85 trillion, a P/E ratio of 27.34, a PEG ratio of 1.26 and a beta of 1.19. 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, Inc. has a 52-week low of $520.26 and a 52-week high of $779.82.

Meta Platforms (NASDAQ:META - Get Free Report) last released 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 business had revenue of $60.80 billion during the quarter, compared to analysts' expectations of $60.22 billion. During the same quarter in the previous year, the business earned $7.14 EPS. The business's revenue for the quarter was up 28.0% on a year-over-year basis. As a group, sell-side analysts anticipate that Meta Platforms, Inc. will post 27.94 EPS for the current year.

Meta Platforms Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Monday, September 21st were paid a $0.5250 dividend. This represents a $2.10 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Monday, September 21st. Meta Platforms's dividend payout ratio (DPR) is currently 7.91%.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta’s free Muse personal AI agent has reportedly surpassed 5 million downloads, reinforcing the company’s lead in consumer AI. JPMorgan says Meta’s free-access strategy could pressure subscription-based rivals and potentially create a valuable new advertising and commerce channel. Zuckerberg's Free AI Agent Hit 5 Million Downloads
• Positive Sentiment: Analysts and commentators remain optimistic that Meta can convert AI adoption into revenue. The company is expanding its Muse platform for small businesses, linking AI tools with advertising, sales and operations, which could improve ad targeting and accelerate advertiser spending. META Expands Muse for Small Businesses
• Positive Sentiment: A recent analyst upgrade helped support the stock, while strategists describe Meta as a potential beneficiary of the next phase of the AI trade because it is using AI to strengthen an existing advertising business rather than relying solely on infrastructure spending. Meta Stock Jumps Following Analyst Upgrade
• Positive Sentiment: Meta reportedly signed a $27 billion AI-capacity agreement with Nebius, highlighting continued demand for computing resources and the company’s commitment to scaling its AI capabilities. Nebius Group Signs AI Capacity Deal with Meta
• Neutral Sentiment: Meta’s strong September performance reflected enthusiasm over Muse, which reportedly outpaced ChatGPT in Apple’s App Store downloads. However, investors are now focused on how quickly the company can monetize the service and whether the recent rally has already priced in much of the good news. Meta Stock Enjoys Best Month on AI Momentum
• Negative Sentiment: OpenAI’s launch of Dots introduces a significant competitor in personal AI agents. Google, Apple and other startups are also entering the market, raising questions about customer retention, pricing and the cost of defending Muse’s early lead. OpenAI Follows Meta into Personal AI Agents
• Negative Sentiment: Investors remain concerned about Meta’s more than $130 billion AI investment program, declining free cash flow and the possibility that data-center capacity will eventually exceed demand. A report also questioned the company’s use of tax credits for AI data-center costs, creating potential tax and reputational exposure. How Meta Uses AI Data Centers to Avoid Federal Taxes
• Negative Sentiment: Reports of insider selling, including transactions by CEO Mark Zuckerberg and COO Javier Olivan under a pre-arranged trading plan, may weigh modestly on sentiment, although the sales do not necessarily indicate deteriorating fundamentals. Meta Platforms Insider Sold Shares
• Negative Sentiment: Meta has also disputed claims that Muse accessed private messages without permission. Even if the allegation is unfounded, renewed privacy concerns could increase regulatory scrutiny and slow adoption of the product. Meta Disputes Muse Privacy Claim

Analyst Upgrades and Downgrades

META has been the topic of a number of recent research reports. Canaccord Genuity Group upped their price objective on Meta Platforms from $930.00 to $950.00 and gave the company a "buy" rating in a research report on Friday, September 25th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $800.00 target price (down from $850.00) on shares of Meta Platforms in a report on Thursday, July 30th. BNP Paribas Exane cut their target price on Meta Platforms from $955.00 to $855.00 and set an "outperform" rating on the stock in a research report on Thursday, July 30th. TD Cowen increased their price target on Meta Platforms from $750.00 to $865.00 and gave the company a "buy" rating in a report on Friday, September 25th. Finally, Daiwa Securities Group lowered their price target on Meta Platforms from $790.00 to $687.00 and set a "buy" rating for the company in a research report on Tuesday, August 4th. Three research analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, Meta Platforms currently has a consensus rating of "Moderate Buy" and an average price target of $787.86.

Insider Buying and Selling

In related news, insider Christopher Cox sold 40,000 shares of Meta Platforms stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $712.76, for a total transaction of $28,510,400.00. Following the completion of the sale, the insider owned 184,516 shares in the company, valued at $131,515,624.16. This trade represents a 17.82% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan Li sold 9,196 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the completion of the sale, the chief financial officer directly owned 13,186 shares of the company's stock, valued at approximately $7,260,343.46. This trade represents 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. Insiders have sold a total of 151,882 shares of company stock worth $103,032,319 over the last ninety days. 13.53% of the stock is owned by insiders.

About Meta Platforms

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company operates a global family of apps that includes Facebook, Instagram, Messenger, WhatsApp and Threads, enabling users to connect, communicate, share content and discover communities.

Meta generates most of its business through digital advertising displayed across its platforms. Its products serve individuals, creators, businesses and organizations in markets around the world, while its advertising tools help businesses reach audiences based on factors such as interests, activity and demographics.

Through its Reality Labs division, Meta develops virtual and augmented reality hardware, software and services, including the Meta Quest line of headsets and related experiences.

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