Meta Platforms, Inc. $META Stake Decreased by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers LP cut its Meta Platforms stake by 7.8% in the third quarter, selling 47,909 shares and retaining 564,072 shares valued at approximately $409.1 million. Institutional investors collectively own 79.91% of Meta’s stock.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year, but earnings of $6.18 per share fell short of the $7.19 consensus estimate. The company also pays a quarterly dividend of $0.525 per share, for an annualized yield of about 0.3%.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $808.88, although insiders—including CEO Mark Zuckerberg—have sold shares under pre-arranged trading plans.

Sustainable Growth Advisers LP reduced its holdings in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 7.8% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 564,072 shares of the social networking company's stock after selling 47,909 shares during the quarter. Meta Platforms accounts for 4.5% of Sustainable Growth Advisers LP's portfolio, making the stock its 7th biggest holding. Sustainable Growth Advisers LP's holdings in Meta Platforms were worth $409,054,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Horizons Wealth Management purchased a new position in Meta Platforms in the 3rd quarter worth about $33,000. Advantage Trust Co purchased a new stake in shares of Meta Platforms during the 2nd quarter valued at about $28,000. Philadelphia Investment Partners LLC purchased a new stake in shares of Meta Platforms during the 2nd quarter valued at about $32,000. Axiom Investment Management LLC purchased a new stake in shares of Meta Platforms during the 1st quarter valued at about $36,000. Finally, Schuylkill Financial LLC bought a new stake in shares of Meta Platforms in the second quarter worth approximately $36,000. 79.91% of the stock is owned by institutional investors.

Meta Platforms Stock Performance

Meta Platforms stock opened at $709.33 on Monday. The business has a 50-day simple moving average of $655.78 and a two-hundred day simple moving average of $626.49. The company has a market cap of $1.81 trillion, a P/E ratio of 26.72, a P/E/G ratio of 1.20 and a beta of 1.19. Meta Platforms, Inc. has a 52-week low of $520.26 and a 52-week high of $779.82. 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 (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 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 business 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 company earned $7.14 EPS. Meta Platforms's revenue for the quarter was up 28.0% compared to the same quarter last year. Analysts predict that Meta Platforms, Inc. will post 28.81 EPS for the current year.

Meta Platforms Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Monday, September 21st were issued a $0.5250 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms's dividend payout ratio (DPR) is presently 7.91%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Guggenheim boosted their price objective on shares of Meta Platforms from $700.00 to $850.00 and gave the company a "buy" rating in a report on Wednesday. Citizens Jmp increased their price objective on shares of Meta Platforms from $770.00 to $885.00 and gave the company a "market outperform" rating in a research report on Thursday, September 24th. Rothschild & Co Redburn raised their target price on shares of Meta Platforms from $900.00 to $1,000.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Mizuho set a $750.00 target price on shares of Meta Platforms and gave the stock an "outperform" rating in a report on Thursday, July 30th. Finally, Barclays decreased their target price on shares of Meta Platforms from $830.00 to $780.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Three research analysts have rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $808.88.

Insider Activity at Meta Platforms

In other Meta Platforms news, CEO Mark Zuckerberg sold 27,474 shares of the stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $777.44, for a total value of $21,359,386.56. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher K. Cox sold 40,000 shares of the stock in a transaction that occurred 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 transaction, the insider owned 184,516 shares in the company, valued at $131,515,624.16. The trade was a 17.82% 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. Over the last ninety days, insiders sold 148,331 shares of company stock worth $101,233,569. 13.53% of the stock is owned by company insiders.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Bank of America expects Meta to exceed third-quarter revenue expectations, forecasting $63.8 billion versus a $63.3 billion consensus estimate, and maintained a Buy rating with an $810 price target. Meta expected to beat revenue forecasts as AI boosts advertising, says Bank of America
• Positive Sentiment: Meta released the open-weight Muse Spark model for coding and AI-agent tasks, while its collaboration with Apple enables developers to run the model locally on high-end Mac computers. The developments could broaden adoption of Meta’s AI technology and reduce reliance on cloud infrastructure. Meta releases open-weight Muse Spark model
• Positive Sentiment: JPMorgan reaffirmed its Overweight rating and set a $920 price target, implying substantial upside, while other analysts including KeyCorp and Rosenblatt also maintained positive ratings. JPMorgan reaffirms Meta rating
• Neutral Sentiment: Meta is expected to report third-quarter results on October 21. Investors will focus on advertising growth, user metrics, profitability, capital expenditures, and management’s outlook for AI infrastructure spending. Meta Q3 earnings estimates
• Neutral Sentiment: Meta withdrew $25 million from a previously announced $65 million effort to support political candidates considered favorable to the AI industry. The move may reduce near-term spending but signals a change in its political strategy. Meta Withdraws $25 Million from Its Midterms Push
• Negative Sentiment: Analyst-related pressure is weighing on the stock after Goldman Sachs lowered its expectations and Meta was reported down following an analyst downgrade, countering the more bullish JPMorgan view. Meta stock price down on analyst downgrade
• Negative Sentiment: Investors remain concerned that AI infrastructure spending could reach approximately $205 billion in 2027. Heavy capital expenditures are reducing free cash flow, while potential legal charges and regulatory scrutiny add to earnings risk. Meta AI spending could hit $205 billion
• Negative Sentiment: Seven U.S. senators are questioning Meta’s claim of $6.6 billion in research tax credits for AI data centers, creating potential tax liability and reputational risk. Senators question Meta AI data-center tax credits

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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