Meta Platforms, Inc. $META Shares Purchased by SWS Partners

Key Points

• SWS Partners increased its Meta stake by 34.1% in the second quarter, owning 8,938 shares valued at approximately $5.04 million. Institutional investors and hedge funds collectively hold 79.91% of Meta’s stock.
• Meta reported 28% year-over-year revenue growth to $60.8 billion, though quarterly EPS of $6.18 fell short of the $7.19 analyst consensus. AI investment is supporting growth prospects but is also pressuring margins and free cash flow.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and $785.22 target price, while Wedbush remains neutral with a $595 target. Recent insider activity was negative, with insiders selling nearly $19.2 million of stock over three months.

SWS Partners raised its holdings in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 34.1% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 8,938 shares of the social networking company's stock after purchasing an additional 2,274 shares during the quarter. Meta Platforms accounts for about 1.1% of SWS Partners' holdings, making the stock its 24th biggest position. SWS Partners' holdings in Meta Platforms were worth $5,035,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. RHL Group LLC purchased a new stake in shares of Meta Platforms in the fourth quarter valued at approximately $28,000. Advantage Trust Co acquired a new position in Meta Platforms during the second quarter worth $28,000. Strategic Wealth Advisors LLC purchased a new position in Meta Platforms in the fourth quarter worth $29,000. Niles Investment Management LLC purchased a new position in Meta Platforms in the fourth quarter worth $29,000. Finally, Axiom Investment Management LLC purchased a new position in Meta Platforms in the first quarter worth $36,000. Institutional investors and hedge funds own 79.91% of the company's stock.

Key Meta Platforms News

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

• Positive Sentiment: New AI model strengthens product narrative: Meta launched Muse Spark 1.3, described as its most advanced AI model, supporting the view that the company is intensifying competition with leading AI developers and could create new monetization opportunities. Meta Platforms unveils most powerful AI model
• Positive Sentiment: $18 billion settlement removes a major overhang: The settlement of lawsuits alleging harm to children provides greater legal visibility. Analysts believe limits on teen usage should have a limited effect on revenue and that resolving the case could clear the way for accelerated AI-product launches. Meta settlement could clear the way for new AI product launches
• Positive Sentiment: Valuation is attracting buyers: Articles characterize META as undervalued at roughly 16–20 times forward earnings, well below its historical valuation, despite 28% recent revenue growth and resilient user engagement. Morgan Stanley analysts see potential for substantial upside if AI improves advertising and product growth. Meta stock looks undervalued
• Positive Sentiment: Advertising outlook remains favorable: An analyst report argues that AI-powered targeting and engagement could help Meta challenge Google for leadership in digital advertising, adding to the stock’s growth appeal. Meta versus Google digital advertising outlook
• Neutral Sentiment: Analyst stance remains cautious: Wedbush reaffirmed a neutral rating with a $595 price target, suggesting limited near-term upside despite the improving legal and AI backdrop.
• Negative Sentiment: AI spending is pressuring cash flow: Meta’s latest results showed margin compression and sharply lower free cash flow as capital expenditures increased, creating concern that returns on its large AI investments may take time.
• Negative Sentiment: Trust and safety issues persist: Meta disabled cameras on thousands of AI glasses after detecting tampering with recording lights, while it also removed scam advertisements in India linked to malware and stolen banking credentials. These incidents could increase regulatory and reputational pressure.

Meta Platforms Price Performance

META stock opened at $592.85 on Thursday. 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 quick ratio of 2.23 and a current ratio of 2.23. The stock's 50 day moving average price is $593.48 and its 200 day moving average price is $609.41. The firm has a market cap of $1.51 trillion, a P/E ratio of 22.33, a PEG ratio of 1.00 and a beta of 1.25.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its earnings results on Wednesday, July 29th. The social networking company reported $6.18 EPS for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). The company had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. Meta Platforms's quarterly revenue was up 28.0% compared to the same quarter last year. During the same quarter last year, the company posted $7.14 EPS. On average, sell-side analysts expect that Meta Platforms, Inc. will post 28.17 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have commented on META shares. Royal Bank Of Canada restated an "outperform" rating and set a $810.00 target price on shares of Meta Platforms in a research report on Monday, June 1st. Citigroup cut their price target on shares of Meta Platforms from $850.00 to $800.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Wedbush reiterated a "neutral" rating and issued a $595.00 price objective on shares of Meta Platforms in a research note on Tuesday. Bank of America decreased their price objective on shares of Meta Platforms from $835.00 to $810.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Finally, KeyCorp lowered their target price on shares of Meta Platforms from $790.00 to $780.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $785.22.

Insiders Place Their Bets

In related news, CFO Susan J. Li sold 9,196 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $550.61, for a total value of $5,063,409.56. Following the completion of the transaction, the chief financial officer owned 13,186 shares of the company's stock, valued at approximately $7,260,343.46. The trade was a 41.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 500 shares of the business's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $561.56, for a total transaction of $280,780.00. Following the completion of the transaction, the director directly owned 2,943 shares of the company's stock, valued at $1,652,671.08. The trade was a 14.52% 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. Over the last three months, insiders sold 32,987 shares of company stock valued at $19,202,995. Insiders own 13.53% of the company's stock.

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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