Meta Platforms, Inc. $META Position Raised by Geode Capital Management LLC

Key Points

• Geode Capital Management increased its Meta Platforms stake by 1.7% in the fourth quarter, bringing its holdings to 52.8 million shares worth about $34.7 billion.
• Meta shares were down 5.5% in recent trading, with the stock pressured by reports of a possible large equity raise for AI infrastructure and delays in rolling out new AI products.
• Despite the recent weakness, Meta posted strong quarterly results with EPS of $10.44 and revenue of $56.31 billion, while analysts still generally rate the stock a Moderate Buy with a consensus target near $840.60.

Geode Capital Management LLC grew its stake in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 1.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 52,806,712 shares of the social networking company's stock after purchasing an additional 878,396 shares during the period. Meta Platforms comprises approximately 2.1% of Geode Capital Management LLC's investment portfolio, making the stock its 7th largest holding. Geode Capital Management LLC owned 2.09% of Meta Platforms worth $34,734,628,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of META. Vanguard Group Inc. boosted its position in Meta Platforms by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company's stock worth $132,015,115,000 after purchasing an additional 7,269,279 shares in the last quarter. State Street Corp boosted its position in Meta Platforms by 1.9% in the 2nd quarter. State Street Corp now owns 86,925,674 shares of the social networking company's stock worth $64,158,971,000 after purchasing an additional 1,650,435 shares in the last quarter. Danske Bank A S acquired a new position in shares of Meta Platforms during the 3rd quarter worth approximately $1,191,175,000. PFA Pension Forsikringsaktieselskab acquired a new position in shares of Meta Platforms during the 4th quarter worth approximately $813,994,000. Finally, Concentrum Wealth Management raised its stake in shares of Meta Platforms by 948.7% during the 3rd quarter. Concentrum Wealth Management now owns 1,243,577 shares of the social networking company's stock worth $913,000 after buying an additional 1,124,998 shares during the period. Hedge funds and other institutional investors own 79.91% of the company's stock.

Meta Platforms News Roundup

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

• Negative Sentiment: Meta is reportedly weighing a large stock sale to fund AI infrastructure, sparking dilution concerns and pressuring the shares. Article: Meta weighs big equity raising after blockbuster Google deal
• Negative Sentiment: Meta’s AI rollout has faced another delay, with the Muse Spark developer API still lacking a launch date, raising questions about when the company can monetize its AI investments. Article: Meta repeatedly pushes back new AI model release for developers
• Negative Sentiment: Privacy concerns resurfaced after reports that Meta smart glasses could use facial-recognition-style “faceprint” tracking, which could invite regulatory scrutiny and consumer backlash. Article: Code Reveals Meta Smart Glasses Can Use 'Faceprint' Tracking, Raising Privacy Alarms
• Negative Sentiment: Meta is also battling renewed policy and legal pressure in Australia over proposed payments for news, adding another regulatory overhang. Article: Meta accuses Australia of breaching FTA, invokes US 'trade action'
• Neutral Sentiment: Meta continues to receive bullish long-term commentary from some analysts and investors who view it as a major AI and advertising platform, but that optimism is being overshadowed today by funding and execution concerns. Article: Analyst Sees Multi-Billion Dollar Potential In Meta Platforms’ Subscription Model

Meta Platforms Stock Down 5.5%

Shares of NASDAQ:META opened at $593.00 on Friday. The business has a 50-day moving average price of $618.83 and a 200 day moving average price of $636.57. The company has a current ratio of 2.35, a quick ratio of 2.35 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $1.50 trillion, a price-to-earnings ratio of 21.56, a PEG ratio of 1.11 and a beta of 1.23. Meta Platforms, Inc. has a 12-month low of $520.26 and a 12-month high of $796.25.

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

Meta Platforms Dividend Announcement

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 issued a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Monday, June 15th. Meta Platforms's dividend payout ratio (DPR) is 7.63%.

Wall Street Analysts Forecast Growth

META has been the subject of several research analyst reports. Wolfe Research reduced their target price on Meta Platforms from $850.00 to $800.00 and set an "outperform" rating for the company in a research note on Friday, April 10th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Meta Platforms in a research note on Friday, March 27th. Mizuho reduced their target price on Meta Platforms from $850.00 to $835.00 and set an "outperform" rating for the company in a research note on Tuesday, May 5th. Cantor Fitzgerald reduced their target price on Meta Platforms from $850.00 to $750.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. Finally, Stifel Nicolaus reduced their target price on Meta Platforms from $805.00 to $780.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Three research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $840.60.

Insider Transactions at Meta Platforms

In related news, CFO Susan J. Li sold 9,195 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $607.84, for a total transaction of $5,589,088.80. Following the completion of the transaction, the chief financial officer directly owned 13,186 shares in the company, valued at $8,014,978.24. This trade represents a 41.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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, COO Javier Olivan sold 2,778 shares of the firm's stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $629.45, for a total value of $1,748,612.10. Following the transaction, the chief operating officer owned 10,557 shares of the company's stock, valued at $6,645,103.65. This trade represents a 20.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 42,860 shares of company stock valued at $26,555,260. Insiders own 13.53% of the company's stock.

Meta Platforms Company Profile

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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