Meta Platforms, Inc. $META Holdings Boosted by Lakewood Capital Management LP

Key Points

• Lakewood Capital Management increased its Meta position by 63.7% in the second quarter, holding 115,985 shares worth approximately $65.3 million. Institutional investors and hedge funds collectively own 79.91% of Meta’s stock.
• Meta insiders sold 81,758 shares worth about $51.2 million over the past three months, including significant sales by CTO Andrew Bosworth and COO Javier Olivan under pre-arranged Rule 10b5-1 plans.
• Meta reported 28% year-over-year revenue growth to $60.8 billion in its latest quarter, though EPS of $6.18 missed analyst expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $788.88.

Lakewood Capital Management LP lifted its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 63.7% during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 115,985 shares of the social networking company's stock after purchasing an additional 45,130 shares during the period. Meta Platforms comprises about 3.4% of Lakewood Capital Management LP's holdings, making the stock its 9th largest position. Lakewood Capital Management LP's holdings in Meta Platforms were worth $65,333,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Objective Capital Management LLC boosted its stake in Meta Platforms by 2.8% during the 4th quarter. Objective Capital Management LLC now owns 553 shares of the social networking company's stock worth $365,000 after purchasing an additional 15 shares during the period. Watchman Group Inc. increased its stake in Meta Platforms by 0.3% in the first quarter. Watchman Group Inc. now owns 5,091 shares of the social networking company's stock valued at $2,913,000 after purchasing an additional 15 shares during the period. Penney Financial LLC raised its holdings in shares of Meta Platforms by 3.9% in the first quarter. Penney Financial LLC now owns 399 shares of the social networking company's stock valued at $228,000 after buying an additional 15 shares during the last quarter. Barnes Pettey Financial Advisors LLC boosted its stake in shares of Meta Platforms by 1.0% during the first quarter. Barnes Pettey Financial Advisors LLC now owns 1,519 shares of the social networking company's stock worth $869,000 after buying an additional 15 shares during the period. Finally, CWS Financial Advisors LLC grew its holdings in shares of Meta Platforms by 1.7% during the first quarter. CWS Financial Advisors LLC now owns 985 shares of the social networking company's stock worth $564,000 after buying an additional 16 shares during the last quarter. 79.91% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Meta Platforms

In other news, CTO Andrew Bosworth sold 7,848 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total value of $4,379,184.00. Following the completion of the transaction, the chief technology officer owned 828 shares of the company's stock, valued at approximately $462,024. This represents a 90.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 3,348 shares of the business's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $600.97, for a total value of $2,012,047.56. Following the sale, 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 position. 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. In the last three months, insiders sold 81,758 shares of company stock valued at $51,214,020. 13.53% of the stock is owned by insiders.

More Meta Platforms News

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 NASDAQ META opened at $665.75 on Friday. The business has a 50-day moving average of $606.33 and a 200-day moving average of $609.79. The company has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 25.08, a PEG ratio of 1.19 and a beta of 1.25. Meta Platforms, Inc. has a 1-year low of $520.26 and a 1-year high of $790.80. 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 released its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) 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 firm had revenue of $60.80 billion for the quarter, compared to analysts' expectations of $60.22 billion. During the same period last year, the firm earned $7.14 EPS. The business's quarterly revenue was up 28.0% on a year-over-year basis. On average, equities analysts anticipate that Meta Platforms, Inc. will post 27.93 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Monday, September 21st will be paid a dividend of $0.525 per share. The ex-dividend date is Monday, September 21st. This represents a $2.10 annualized dividend and a yield of 0.3%. Meta Platforms's payout ratio is presently 7.91%.

Analyst Ratings Changes

Several brokerages recently weighed in on META. Rothschild & Co Redburn increased their price target on Meta Platforms from $900.00 to $1,000.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Citigroup reissued a "buy" rating and issued a $800.00 price objective on shares of Meta Platforms in a research note on Wednesday. Wolfe Research restated an "outperform" rating and set a $700.00 price objective on shares of Meta Platforms in a research report on Thursday, July 30th. Scotiabank restated a "sector perform" rating and issued a $600.00 target price on shares of Meta Platforms in a research note on Thursday, July 30th. Finally, Weiss Ratings downgraded shares of Meta Platforms from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, June 26th. Four 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's stock. According to data from MarketBeat.com, Meta Platforms has an average rating of "Moderate Buy" and a consensus price target 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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