Meta Platforms, Inc. $META Shares Sold by Focused Alpha LLC

Key Points

• Focused Alpha LLC reduced its Meta stake by 58.7% in the third quarter, selling 1,892 shares and retaining 1,331 shares worth approximately $965,000. Institutional investors and hedge funds collectively own 79.91% of Meta.
• Meta reported a strong quarter, with revenue rising 26.1% year over year to $64.60 billion and earnings of $7.40 per share, exceeding analyst expectations of $6.54. Analysts remain broadly bullish, with a consensus rating of “Moderate Buy” and an average price target of $833.12.
• Shares opened at $642.62, while investors continue to weigh Meta’s AI opportunity against sharply rising capital expenditures, negative free cash flow, and ongoing legal and regulatory risks.

Focused Alpha LLC cut its holdings in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 58.7% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,331 shares of the social networking company's stock after selling 1,892 shares during the period. Focused Alpha LLC's holdings in Meta Platforms were worth $965,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. tru Independence LLC raised its stake in Meta Platforms by 4.6% during the 3rd quarter. tru Independence LLC now owns 1,157 shares of the social networking company's stock worth $839,000 after buying an additional 51 shares during the period. Parkway Wealth Management Group LLC increased its holdings in shares of Meta Platforms by 17.6% during the third quarter. Parkway Wealth Management Group LLC now owns 447 shares of the social networking company's stock valued at $324,000 after acquiring an additional 67 shares in the last quarter. Freedom Day Solutions LLC bought a new stake in shares of Meta Platforms during the third quarter valued at approximately $368,000. Eagle Wealth Advisors LLC raised its position in shares of Meta Platforms by 1.9% during the third quarter. Eagle Wealth Advisors LLC now owns 5,601 shares of the social networking company's stock worth $4,062,000 after purchasing an additional 104 shares during the period. Finally, Sumitomo Mitsui DS Asset Management Company Ltd raised its position in shares of Meta Platforms by 0.9% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 364,682 shares of the social networking company's stock worth $264,460,000 after purchasing an additional 3,185 shares during the period. 79.91% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on META shares. Cantor Fitzgerald increased their target price on Meta Platforms from $840.00 to $860.00 and gave the stock an "overweight" rating in a report on Thursday. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Meta Platforms from $750.00 to $820.00 and gave the company a "buy" rating in a research note on Friday, September 25th. KeyCorp upped their price objective on shares of Meta Platforms from $900.00 to $905.00 and gave the stock an "overweight" rating in a report on Thursday. Sanford C. Bernstein restated an "outperform" rating and set a $800.00 price objective (down from $850.00) on shares of Meta Platforms in a report on Thursday, July 30th. Finally, DZ Bank reaffirmed a "buy" rating on shares of Meta Platforms in a research note on Thursday, July 30th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $833.12.

Meta Platforms Stock Down 1.0%

META stock opened at $642.62 on Friday. The stock has a 50-day simple moving average of $664.40 and a two-hundred day simple moving average of $629.72. The firm has a market capitalization of $1.64 trillion, a PE ratio of 21.91, a PEG ratio of 1.16 and a beta of 1.19. Meta Platforms, Inc. has a twelve month low of $520.26 and a twelve month high of $779.82. The company has a quick ratio of 2.23, a current ratio of 1.90 and a debt-to-equity ratio of 0.30.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its earnings results on Wednesday, October 21st. The social networking company reported $7.40 earnings per share for the quarter, topping analysts' consensus estimates of $6.54 by $0.86. Meta Platforms had a net margin of 31.15% and a return on equity of 30.73%. The business had revenue of $64.60 billion for the quarter, compared to analyst estimates of $63.34 billion. During the same quarter in the prior year, the firm posted $7.25 EPS. Meta Platforms's revenue was up 26.1% on a year-over-year basis. On average, equities analysts predict that Meta Platforms, Inc. will post 28.01 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were given a dividend of $0.5250 per share. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Monday, September 21st. Meta Platforms's payout ratio is 7.91%.

Key Meta Platforms News

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

• Positive Sentiment: Strong Q3 operating performance: Meta reported $64.6 billion in revenue, up 26% year over year, and adjusted earnings of $7.40 per share versus expectations of roughly $6.54. AI-driven recommendations and advertising tools are improving engagement, ad pricing and conversions. META Q3 Earnings Beat Estimates
• Positive Sentiment: Muse adoption supports the AI thesis: Meta’s Muse AI agent has surpassed 10 million downloads, strengthening the case that the company could eventually monetize AI through subscriptions, enterprise services and additional advertising. However, meaningful revenue contribution is expected later, potentially from 2027 onward. Meta Muse Adoption
• Positive Sentiment: Analysts remain broadly constructive: UBS, Citigroup, Mizuho, JPMorgan, Bank of America and other firms raised or reaffirmed bullish ratings and price targets, citing resilient advertising growth and long-term AI potential. Some investors, including commentator Mike Khouw, view the selloff as a buying opportunity. Why Mike Khouw Is Buying Meta
• Neutral Sentiment: New Class C shares and a 2-for-1 split: Meta plans to issue one non-voting Class C share for each Class A and Class B share. The move should improve trading liquidity and give Mark Zuckerberg greater flexibility to sell shares or finance AI investment without surrendering voting control, but it does not by itself create economic value for shareholders. Meta’s New Non-Voting Shares
• Neutral Sentiment: Commercial terms delayed: Meta postponed controversial terms that publishers and advertisers said could authorize broader web scraping, moving implementation to November 20 from October 30. The delay may reduce near-term friction, though the underlying regulatory and customer concerns remain. Meta Delays Commercial Terms
• Negative Sentiment: AI spending is the main pressure: Meta lifted the lower end of its 2026 capital-expenditure forecast to $135 billion, with spending potentially reaching $145 billion. Free cash flow turned negative as infrastructure investment accelerated, while credit-default-swap costs reached records. Investors are questioning when Muse and other AI projects will generate returns. Meta AI Spending and Free Cash Flow
• Negative Sentiment: Legal and regulatory risks remain significant: Meta faces a $25 billion New Mexico privacy judgment, additional lawsuits alleging harm to children and scam advertising, and rising legal costs. The company plans to appeal the New Mexico ruling, but the liabilities add uncertainty and pressure margins. Meta New Mexico Privacy Judgment

Insider Transactions at Meta Platforms

In related news, insider Christopher K. Cox sold 40,000 shares of Meta Platforms stock in a transaction on Monday, September 21st. The stock was sold at an average price of $712.76, for a total transaction of $28,510,400.00. Following the completion of the sale, the insider owned 184,516 shares of the company's stock, valued at approximately $131,515,624.16. This trade represents a 17.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Aaron Anderson sold 3,240 shares of Meta Platforms stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $618.06, for a total value of $2,002,514.40. Following the sale, the chief accounting officer directly owned 6,271 shares of the company's stock, valued at $3,875,854.26. This represents a 34.07% 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. In the last quarter, insiders have sold 149,906 shares of company stock valued at $102,347,409. Corporate insiders own 13.53% of the company's stock.

Meta Platforms Company Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company's principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.

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