Meta Platforms, Inc. $META Stock Holdings Lessened by Harspring Capital Management LLC

Key Points

• Harspring Capital Management cut its Meta position by 56.7% in the second quarter, selling 19,000 shares and retaining 14,500 shares valued at approximately $8.2 million.
• Institutional investors own about 79.9% of Meta’s stock, while insiders sold 81,758 shares worth roughly $51.2 million over the past 90 days, including significant sales by executives under pre-arranged trading plans.
• Analysts remain broadly bullish, with Meta receiving a “Moderate Buy” consensus rating and an average price target of $788.88, although concerns include heavy AI-related capital spending, declining free cash flow, valuation sensitivity and legal or reputational risks.

Harspring Capital Management LLC reduced its position in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 56.7% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 14,500 shares of the social networking company's stock after selling 19,000 shares during the quarter. Meta Platforms comprises about 15.2% of Harspring Capital Management LLC's holdings, making the stock its 6th biggest holding. Harspring Capital Management LLC's holdings in Meta Platforms were worth $8,168,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the company. Auto Owners Insurance Co grew its position in Meta Platforms by 76,587.7% during the fourth quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company's stock worth $69,502,379,000 after buying an additional 105,154,977 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Meta Platforms by 1.7% in the 4th quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company's stock valued at $34,734,628,000 after acquiring an additional 878,396 shares in the last quarter. Norges Bank bought a new stake in shares of Meta Platforms during the 4th quarter valued at about $22,152,075,000. Bank of America Corp DE boosted its position in shares of Meta Platforms by 14.6% during the 1st quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company's stock valued at $12,036,491,000 after acquiring an additional 2,673,494 shares during the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Meta Platforms by 6.1% in the 4th quarter. Invesco Ltd. now owns 18,200,469 shares of the social networking company's stock worth $12,013,948,000 after buying an additional 1,046,715 shares during the last quarter. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, insider Christopher K. Cox sold 20,000 shares of the company's stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $650.28, for a total value of $13,005,600.00. Following the sale, the insider directly owned 244,516 shares of the company's stock, valued at $159,003,864.48. This represents a 7.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan J. Li sold 9,196 shares of the stock in a transaction on Tuesday, August 18th. The stock was 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. This trade represents a 41.09% 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. In the last ninety days, insiders sold 81,758 shares of company stock worth $51,214,020. Company insiders own 13.53% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Susquehanna lowered their price target on Meta Platforms from $900.00 to $650.00 and set a "positive" rating on the stock in a research report on Thursday, July 30th. Scotiabank reissued a "sector perform" rating and issued a $600.00 price target on shares of Meta Platforms in a research note on Thursday, July 30th. Monness Crespi & Hardt reduced their price objective on Meta Platforms from $890.00 to $730.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $800.00 price objective on shares of Meta Platforms in a report on Thursday, July 30th. Finally, Rothschild & Co Redburn boosted their target price on Meta Platforms from $900.00 to $1,000.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $788.88.

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

Meta Platforms Stock Performance

Shares of NASDAQ:META opened at $665.75 on Friday. Meta Platforms, Inc. has a 12 month low of $520.26 and a 12 month high of $790.80. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The company has a 50-day moving average price of $606.33 and a 200-day moving average price of $609.79. The company has a market cap 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.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its earnings results 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). The business had revenue of $60.80 billion for the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same period last year, the firm posted $7.14 earnings per share. As a group, equities analysts anticipate that Meta Platforms, Inc. will post 27.93 EPS for the current year.

Meta Platforms Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Monday, September 21st will be issued a $0.525 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.10 annualized dividend and a yield of 0.3%. Meta Platforms's dividend payout ratio is 7.91%.

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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