Meta Platforms, Inc. $META Shares Sold by L2 Asset Management LLC

Key Points

• L2 Asset Management reduced its Meta Platforms stake by 18.4% in the second quarter, selling 3,131 shares and retaining 13,886 shares valued at approximately $7.82 million.
• Institutional investors continue to dominate Meta’s ownership, holding roughly 79.91% of outstanding shares, while several smaller funds recently initiated or increased positions.
• Meta’s stock opened at $665.75, but investor sentiment is mixed: AI products and custom chips offer growth potential, while heavy AI-related capital spending, legal concerns and recent insider selling create risks. Analysts maintain a “Moderate Buy” consensus, with an average price target of $788.88.

L2 Asset Management LLC trimmed its holdings in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 18.4% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 13,886 shares of the social networking company's stock after selling 3,131 shares during the period. L2 Asset Management LLC's holdings in Meta Platforms were worth $7,822,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. RHL Group LLC acquired a new stake in shares of Meta Platforms in the 4th quarter valued at about $28,000. Advantage Trust Co bought a new position in shares of Meta Platforms during the second quarter worth about $28,000. Niles Investment Management LLC acquired a new position in Meta Platforms in the fourth quarter worth about $29,000. Axiom Investment Management LLC bought a new stake in Meta Platforms in the first quarter valued at about $36,000. Finally, Bayban increased its holdings in Meta Platforms by 100.0% in the first quarter. Bayban now owns 70 shares of the social networking company's stock valued at $40,000 after buying an additional 35 shares during the last quarter. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

Key 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 Stock Performance

META stock opened at $665.75 on Friday. The company has a 50-day simple moving average of $606.33 and a 200 day simple moving average of $609.79. The company has a market capitalization of $1.70 trillion, a P/E ratio of 25.08, a PEG ratio of 1.19 and a beta of 1.25. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. Meta Platforms, Inc. has a fifty-two week low of $520.26 and a fifty-two week high of $790.80.

Meta Platforms (NASDAQ:META - Get Free Report) last released its quarterly 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 the consensus estimate of $60.22 billion. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The firm's quarterly revenue was up 28.0% compared to the same quarter last year. During the same quarter last year, the firm posted $7.14 earnings per share. Sell-side analysts predict that Meta Platforms, Inc. will post 27.93 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend

The company also recently disclosed 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 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 is currently 7.91%.

Analyst Ratings Changes

A number of research analysts have commented on META shares. DA Davidson reduced their target price on Meta Platforms from $850.00 to $700.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Robert W. Baird dropped their price target on Meta Platforms from $830.00 to $750.00 and set an "outperform" rating on the stock in a research report on Thursday, July 30th. Evercore restated an "outperform" rating on shares of Meta Platforms in a research note on Thursday, July 30th. Susquehanna decreased their price objective on shares of Meta Platforms from $900.00 to $650.00 and set a "positive" rating for the company in a report on Thursday, July 30th. Finally, Scotiabank reiterated a "sector perform" rating and set a $600.00 target price on shares of Meta Platforms in a research note on Thursday, July 30th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $788.88.

Insiders Place Their Bets

In other Meta Platforms news, COO Javier Olivan sold 3,348 shares of the business's stock in a transaction dated 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 completion of the sale, the chief operating officer owned 9,498 shares of the company's stock, valued at $5,708,013.06. The trade was a 26.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bosworth sold 7,848 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total transaction of $4,379,184.00. Following the sale, the chief technology officer owned 828 shares of the company's stock, valued at $462,024. This trade represents a 90.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 81,758 shares of company stock valued at $51,214,020 over the last 90 days. 13.53% of the stock is owned by corporate insiders.

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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