Meta Platforms, Inc. $META Shares Bought by Caisse de depot et placement du Quebec

Key Points

• Caisse de dépôt et placement du Québec increased its Meta stake by 20.1% in the second quarter, adding 408,244 shares to hold 2.44 million shares worth approximately $1.38 billion. Institutional investors and hedge funds collectively own 79.91% of Meta.
• Meta reported quarterly revenue of $60.80 billion, up 28% year over year and above estimates, but earnings per share of $6.18 missed the $7.19 consensus forecast. The company also declared a quarterly dividend of $0.525 per share, equivalent to a 0.3% annualized yield.
• Meta’s AI initiatives offer potential growth catalysts, including strong early adoption of its Muse assistant and possible savings from internally developed chips, but investors face concerns over rising AI infrastructure spending, declining free cash flow, legal pressures and insider share sales.

Caisse de depot et placement du Quebec raised its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 20.1% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 2,442,888 shares of the social networking company's stock after purchasing an additional 408,244 shares during the quarter. Meta Platforms accounts for 2.0% of Caisse de depot et placement du Quebec's portfolio, making the stock its 6th largest position. Caisse de depot et placement du Quebec owned approximately 0.10% of Meta Platforms worth $1,376,054,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of META. RHL Group LLC purchased a new stake in Meta Platforms in the fourth quarter valued at approximately $28,000. Advantage Trust Co acquired a new stake in Meta Platforms during the 2nd quarter valued at approximately $28,000. Niles Investment Management LLC acquired a new stake in Meta Platforms during the 4th quarter valued at approximately $29,000. Axiom Investment Management LLC purchased a new stake in shares of Meta Platforms in the 1st quarter valued at $36,000. Finally, Bayban boosted its holdings in shares of Meta Platforms by 100.0% in the 1st quarter. Bayban now owns 70 shares of the social networking company's stock valued at $40,000 after acquiring an additional 35 shares during the last quarter. 79.91% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Meta Platforms news, COO Javier Olivan sold 946 shares of the business's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $657.73, for a total transaction of $622,212.58. Following the completion of the sale, the chief operating officer directly owned 10,716 shares in the company, valued at approximately $7,048,234.68. The trade was a 8.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 20,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $675.23, for a total value of $13,504,600.00. Following the transaction, the insider directly owned 224,516 shares of the company's stock, valued at $151,599,938.68. The trade was a 8.18% 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. Insiders sold a total of 81,758 shares of company stock worth $51,214,020 in the last quarter. 13.53% of the stock is owned by insiders.

Meta Platforms Trading Down 2.4%

Shares of NASDAQ:META opened at $665.75 on Friday. The firm has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 25.08, a price-to-earnings-growth ratio of 1.16 and a beta of 1.25. The business's 50 day moving average price is $606.33 and its 200-day moving average price is $609.79. 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, Inc. has a 1 year low of $520.26 and a 1 year high of $790.80.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its quarterly earnings data 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 net margin of 29.83% and a return on equity of 33.18%. The company had revenue of $60.80 billion for the quarter, compared to analysts' expectations of $60.22 billion. During the same period in the previous year, the business earned $7.14 earnings per share. The business's revenue for the quarter was up 28.0% on a year-over-year basis. On average, equities research analysts forecast that Meta Platforms, Inc. will post 27.93 earnings per share 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 paid a $0.525 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. 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 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

Analyst Ratings Changes

META has been the subject of several recent research reports. Arete Research set a $735.00 target price on shares of Meta Platforms and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Weiss Ratings downgraded Meta Platforms from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. BNP Paribas Exane initiated coverage on Meta Platforms in a research note on Tuesday, June 2nd. They set an "outperform" rating for the company. Citizens Jmp decreased their price objective on Meta Platforms from $800.00 to $770.00 and set a "market outperform" rating for the company in a report on Thursday, July 30th. Finally, KeyCorp lowered their target price on Meta Platforms from $790.00 to $780.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Four investment 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 a consensus target price of $788.88.

About Meta Platforms

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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