Main Street Research LLC Sells 2,636 Shares of Meta Platforms, Inc. $META

Key Points

• Main Street Research LLC trimmed its Meta Platforms stake by 3.0% in the fourth quarter, selling 2,636 shares and ending with 86,547 shares valued at about $57.1 million.
• Meta reported a strong quarterly result, with $10.44 EPS versus $6.67 expected and $56.31 billion in revenue, up 33.1% year over year. The company also announced a quarterly dividend of $0.525 per share.
• Recent developments around Meta’s AI push were mixed but mostly constructive: the company launched an enterprise-focused AI “business agent”, received a strong-buy upgrade from Areté Research, and won a partial legal win in Europe, while security and antitrust concerns remain in the background.

Main Street Research LLC lowered its stake in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 3.0% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 86,547 shares of the social networking company's stock after selling 2,636 shares during the quarter. Meta Platforms comprises 3.2% of Main Street Research LLC's portfolio, making the stock its 14th largest holding. Main Street Research LLC's holdings in Meta Platforms were worth $57,129,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently added to or reduced their stakes in the company. Westchester Capital Management Inc. bought a new stake in Meta Platforms during the third quarter worth approximately $26,000. RHL Group LLC bought a new stake in Meta Platforms during the fourth quarter worth approximately $28,000. Strategic Wealth Advisors LLC bought a new stake in Meta Platforms during the fourth quarter worth approximately $29,000. Key Capital Management INC bought a new stake in Meta Platforms during the fourth quarter worth approximately $48,000. Finally, Entrust Financial LLC bought a new stake in Meta Platforms during the fourth quarter worth approximately $48,000. Institutional investors own 79.91% of the company's stock.

Meta Platforms Stock Up 4.2%

Shares of META stock opened at $622.98 on Thursday. Meta Platforms, Inc. has a 12 month low of $520.26 and a 12 month high of $796.25. The firm has a market cap of $1.58 trillion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 1.06 and a beta of 1.23. The stock has a 50 day moving average of $618.18 and a 200-day moving average of $636.74. The company has a quick ratio of 2.35, a current ratio of 2.35 and a debt-to-equity ratio of 0.24.

Meta Platforms (NASDAQ:META - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The social networking company reported $10.44 EPS for the quarter, topping analysts' consensus estimates of $6.67 by $3.77. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The company had revenue of $56.31 billion during the quarter, compared to analyst estimates of $55.56 billion. During the same period in the previous year, the company earned $6.43 earnings per share. The company's quarterly revenue was up 33.1% compared to the same quarter last year. On average, equities analysts predict that Meta Platforms, Inc. will post 29.35 EPS for the current year.

Meta Platforms Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Monday, June 15th will be paid 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 is Monday, June 15th. Meta Platforms's dividend payout ratio is presently 7.63%.

More Meta Platforms News

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

• Positive Sentiment: Meta launched an enterprise-focused AI “business agent” designed to help companies handle customer inquiries, recommend products, book appointments, and automate daily operations across WhatsApp, Messenger, and Instagram. Investors see this as a new subscription-like revenue opportunity beyond ads. Reuters article
• Positive Sentiment: Coverage from multiple outlets suggested Meta’s AI agent strategy could expand into the business market and help diversify revenue, reinforcing the bull case that the company can monetize AI more effectively. CNBC article
• Positive Sentiment: Areté Research upgraded Meta Platforms (META) from hold to strong-buy and set a $735 target, adding to the favorable analyst tone around the stock. Finviz reference
• Positive Sentiment: Meta also won a partial legal victory in Europe after a court backed its challenge to the EU’s “gatekeeper” designation for Marketplace, which could reduce regulatory pressure on part of the business. Reuters article
• Neutral Sentiment: Meta’s metaverse unit saw another management change, with Metaverse Products Group lead Gabriel Aul quietly leaving and being replaced by Saxs Persson. This is more of an internal reshuffle than a clear stock catalyst. Business Insider article
• Negative Sentiment: Reuters reported that a high-profile hack exposed weaknesses in Meta’s AI support chatbot, highlighting security risks as the company automates sensitive account functions. Reuters article
• Negative Sentiment: State attorneys general also urged a court to revive antitrust claims against Meta, keeping regulatory and legal overhangs in the background. MediaPost article

Insider Activity

In other Meta Platforms news, CTO Andrew Bosworth sold 7,847 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $607.83, for a total value of $4,769,642.01. Following the sale, the chief technology officer owned 414 shares of the company's stock, valued at $251,641.62. The trade was a 94.99% decrease in their position. The sale 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Robert M. Kimmitt sold 504 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $629.29, for a total transaction of $317,162.16. Following the completion of the sale, the director directly owned 3,943 shares in the company, valued at $2,481,290.47. This trade represents a 11.33% 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. Over the last three months, insiders have sold 42,860 shares of company stock valued at $26,555,260. 13.53% of the stock is owned by insiders.

Analyst Ratings Changes

A number of brokerages have issued reports on META. Stifel Nicolaus decreased their target price on Meta Platforms from $805.00 to $780.00 and set a "buy" rating for the company in a research report on Friday, May 1st. Barclays upped their target price on Meta Platforms from $800.00 to $830.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. Mizuho decreased their target price on Meta Platforms from $850.00 to $835.00 and set an "outperform" rating for the company in a research report on Tuesday, May 5th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $725.00 target price (down from $825.00) on shares of Meta Platforms in a research report on Thursday, April 30th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $810.00 target price on shares of Meta Platforms in a research report on Monday. Three analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Meta Platforms currently has a consensus rating of "Moderate Buy" and a consensus target price of $840.60.

About Meta Platforms

Meta Platforms, Inc NASDAQ: META, formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta's core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

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