Magellan Asset Management Ltd Sells 327,961 Shares of Meta Platforms, Inc. $META

Key Points

• Magellan Asset Management cut its Meta position by 64.7%, selling 327,961 shares and retaining 179,071 shares valued at approximately $100.9 million. Institutional investors collectively own 79.91% of Meta.
• Meta reported quarterly EPS of $6.18, missing estimates of $7.19, although revenue rose 28% year over year to $60.8 billion and exceeded expectations. The company also declared a quarterly dividend of $0.525 per share.
• Analyst sentiment remains positive, with Meta carrying a “Moderate Buy” consensus rating and an average price target of $788.88, despite continued insider selling and legal concerns related to fraudulent advertisements.

Magellan Asset Management Ltd cut its position in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 64.7% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 179,071 shares of the social networking company's stock after selling 327,961 shares during the quarter. Meta Platforms accounts for about 2.3% of Magellan Asset Management Ltd's portfolio, making the stock its 16th largest holding. Magellan Asset Management Ltd's holdings in Meta Platforms were worth $100,869,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Mission Financial Group LLC bought a new position in Meta Platforms in the second quarter valued at about $637,000. Benchmark Investment Advisors LLC lifted its holdings in shares of Meta Platforms by 1.8% in the second quarter. Benchmark Investment Advisors LLC now owns 9,110 shares of the social networking company's stock worth $5,132,000 after acquiring an additional 163 shares during the last quarter. LM Advisors LLC lifted its holdings in shares of Meta Platforms by 67.1% in the second quarter. LM Advisors LLC now owns 15,715 shares of the social networking company's stock worth $8,851,000 after acquiring an additional 6,312 shares during the last quarter. Clear Harbor Asset Management LLC boosted its stake in shares of Meta Platforms by 1.1% in the 2nd quarter. Clear Harbor Asset Management LLC now owns 19,731 shares of the social networking company's stock valued at $11,114,000 after purchasing an additional 211 shares in the last quarter. Finally, Davis Asset Management L.P. boosted its stake in shares of Meta Platforms by 0.4% in the 2nd quarter. Davis Asset Management L.P. now owns 517,000 shares of the social networking company's stock valued at $291,221,000 after purchasing an additional 2,000 shares in the last quarter. Institutional investors own 79.91% of the company's stock.

Insiders Place Their Bets

In other Meta Platforms news, COO Javier Olivan sold 946 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $657.73, for a total value of $622,212.58. Following the transaction, the chief operating officer directly owned 10,716 shares in the company, valued at $7,048,234.68. The trade was a 8.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis Mahoney sold 1,559 shares of Meta Platforms stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total transaction of $869,922.00. Following the completion of the sale, the insider directly owned 1,957 shares in the company, valued at $1,092,006. This trade represents a 44.34% decrease in their position. 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 81,758 shares of company stock valued at $51,214,020. Company insiders own 13.53% of the company's stock.

Meta Platforms Trading Up 1.3%

NASDAQ:META opened at $682.31 on Friday. The company has a market cap of $1.74 trillion, a PE ratio of 25.70, a PEG ratio of 1.17 and a beta of 1.25. Meta Platforms, Inc. has a one year low of $520.26 and a one year high of $790.80. The firm has a 50-day moving average of $606.40 and a 200-day moving average of $609.40. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Meta Platforms (NASDAQ:META - Get Free Report) last posted 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). The company had revenue of $60.80 billion during the quarter, compared to the consensus estimate of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The firm's revenue for the quarter was up 28.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $7.14 EPS. As a group, equities research analysts expect that Meta Platforms, Inc. will post 27.93 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The business also recently declared 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 dividend yield of 0.3%. The ex-dividend date of this dividend is Monday, September 21st. Meta Platforms's payout ratio is 7.91%.

Meta Platforms News Summary

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

• Positive Sentiment: Bank of America maintained a Buy view, estimating Meta could save approximately $8.5 billion in 2027 by shifting AI workloads to its in-house MTIA chips. Meta reportedly plans to deploy newer chips in 2027, potentially reducing dependence on Nvidia and improving AI margins. Meta Can Save $8.5 Billion in 2027 by Using Its Own MTIA Chips
• Positive Sentiment: Meta’s Muse AI agent and the new Meta One subscription are strengthening the investment case that the company can diversify beyond advertising. Meta One combines higher AI usage limits and features across Facebook, Instagram and WhatsApp, creating a potential recurring-revenue stream. Meta Platforms: Get In Before September 23
• Positive Sentiment: Analyst optimism remains a near-term catalyst. Citi identified Meta Connect on September 23 as a possible trigger for additional product announcements and investor enthusiasm, while Rosenblatt reiterated a Buy rating with an $886 price target. Meta Event Next Week Could Spark Stock Gains, Says Citi
• Neutral Sentiment: Meta is expanding Muse’s capabilities, including phone calls, as it competes with emerging AI-agent providers. The move could improve user engagement and monetization, but competition and the execution required to turn usage into paid revenue remain significant. Rival AI Agents and Meta’s Muse Add Calling
• Negative Sentiment: A German court ruled Meta liable for fraudulent third-party advertisements on Facebook and Instagram, ordering the company to remove such content and pay damages. The decision could increase legal costs and raise concerns about platform-monitoring obligations. German Court Rules Meta Liable for Fake Ads
• Negative Sentiment: Consumer advocate Clark Howard said Meta declined to remove a deepfake advertisement using his likeness. The episode adds reputational and regulatory risk as Meta attempts to control AI-generated scams and fraudulent advertising. Facebook Told Clark Howard a Deepfake Ad Meets Its Standards
• Negative Sentiment: Chief Product Officer Christopher Cox sold 20,000 Meta shares worth about $13.5 million. The transaction was made under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but insider selling can still weigh modestly on sentiment. SEC Insider Trading Filing

Analyst Ratings Changes

A number of research firms have weighed in on META. Bank of America decreased their target price on shares of Meta Platforms from $835.00 to $810.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Rothschild & Co Redburn upped their price target on Meta Platforms from $900.00 to $1,000.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Scotiabank reissued a "sector perform" rating and issued a $600.00 price target on shares of Meta Platforms in a research note on Thursday, July 30th. JPMorgan Chase & Co. upgraded shares of Meta Platforms from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $640.00 to $820.00 in a report on Thursday, September 10th. Finally, Erste Group Bank raised Meta Platforms from a "hold" rating to a "buy" rating in a research report on Tuesday, July 7th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Meta Platforms presently has an average rating of "Moderate Buy" and an average target price of $788.88.

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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