Meta Platforms, Inc. $META Stock Sold by Second Line Capital LLC

Key Points

• Second Line Capital cut its Meta stake by 81.7% in the second quarter, selling 6,219 shares and retaining 1,397 shares valued at approximately $787,000. Institutional investors still own about 79.9% of Meta’s stock.
• Meta reported 28% year-over-year revenue growth to $60.8 billion, but quarterly EPS of $6.18 missed analyst expectations of $7.19. The company also faces concerns over sharply higher AI and data-center spending, competition, and privacy-related risks.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $787.86; however, targets range widely, reflecting differing views on Meta’s AI investments and valuation.

Second Line Capital LLC lessened its stake in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 81.7% in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,397 shares of the social networking company's stock after selling 6,219 shares during the quarter. Second Line Capital LLC's holdings in Meta Platforms were worth $787,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the company. RHL Group LLC purchased a new position in Meta Platforms during the fourth quarter worth approximately $28,000. Advantage Trust Co acquired a new stake in shares of Meta Platforms during the second quarter worth about $28,000. Niles Investment Management LLC purchased a new position in Meta Platforms in the 4th quarter valued at approximately $29,000. Philadelphia Investment Partners LLC purchased a new position in Meta Platforms in the second quarter valued at $32,000. Finally, Axiom Investment Management LLC purchased a new position in shares of Meta Platforms in the 1st quarter valued at about $36,000. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

Meta Platforms Stock Down 4.8%

Shares of NASDAQ:META opened at $715.62 on Tuesday. The stock's 50-day moving average price is $616.56 and its two-hundred day moving average price is $613.27. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. Meta Platforms, Inc. has a 12-month low of $520.26 and a 12-month high of $779.82. The firm has a market cap of $1.82 trillion, a price-to-earnings ratio of 26.95, a PEG ratio of 1.31 and a beta of 1.25.

Meta Platforms (NASDAQ:META - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The firm had revenue of $60.80 billion for the quarter, compared to analysts' expectations of $60.22 billion. During the same period last year, the firm posted $7.14 EPS. Meta Platforms's revenue was up 28.0% on a year-over-year basis. On average, research analysts forecast that Meta Platforms, Inc. will post 27.93 EPS for the current year.

Meta Platforms Dividend Announcement

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

Meta Platforms News Summary

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

• Positive Sentiment: Meta launched the Meta Enterprise Platform, offering businesses and developers access to its Muse AI agent, Business Agent, Muse API and Muse Code. The company hired MongoDB CEO Chirantan “CJ” Desai to lead the initiative, signaling an effort to generate revenue from its multibillion-dollar AI investments beyond advertising. Meta launches enterprise AI platform
• Positive Sentiment: Muse’s integration across Facebook, Instagram, Messenger and WhatsApp is supporting rapid user adoption; the AI-powered app reportedly reached the top spot in the U.S. App Store. Analysts also see potential revenue from subscriptions, transaction fees, enterprise tools and commercial API licensing. Meta Platforms boosts ad engagement with AI
• Positive Sentiment: Monness Crespi & Hardt raised its price target on META to $830 from $730 and maintained a Buy rating, citing the company’s AI opportunity and expanding ecosystem. AI improvements are also reportedly increasing ad engagement, clicks and conversions. Meta Platforms price target raised
• Neutral Sentiment: Investors remain divided over Meta’s AI strategy. Bullish analysts expect new AI agents, smart glasses and enterprise software to create additional revenue streams, while others question whether the returns will justify the investment.
• Negative Sentiment: Capital expenditures rose sharply to $31.1 billion in the second quarter from $19.4 billion a year earlier. The scale of data-center and AI spending is raising concerns about returns on capital and near-term margins. Meta Platforms: Are You Going to Buy the Promise?
• Negative Sentiment: Reports that OpenAI is developing a competing AI assistant intensified competitive concerns. Separately, alleged Muse disclosures of private messages and a user’s address have triggered privacy and safety criticism, potentially creating regulatory and reputational risks. Elon Musk amplifies privacy concerns over Muse
• Negative Sentiment: Meta also faces legal and political overhang after a New Mexico jury found that Facebook misled residents about personal-data practices, while lawmakers are questioning AI and data-center tax subsidies. Recent gains have additionally left the valuation less compelling, increasing sensitivity to execution disappointments.

Insider Buying and Selling

In other Meta Platforms news, COO Javier Olivan sold 946 shares of the firm's stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $680.27, for a total value of $643,535.42. Following the transaction, the chief operating officer owned 9,770 shares of the company's stock, valued at $6,646,237.90. This trade represents a 8.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 dated 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 directly owned 184,516 shares in the company, valued at approximately $131,515,624.16. This trade represents a 17.82% 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. Over the last quarter, insiders sold 150,807 shares of company stock worth $102,155,232. Insiders own 13.53% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Monness Crespi & Hardt boosted their target price on shares of Meta Platforms from $730.00 to $830.00 and gave the stock a "buy" rating in a research note on Monday. Royal Bank Of Canada reiterated an "outperform" rating and issued a $770.00 price target on shares of Meta Platforms in a research report on Thursday, September 24th. Canaccord Genuity Group lifted their target price on Meta Platforms from $930.00 to $950.00 and gave the company a "buy" rating in a research note on Friday. DA Davidson dropped their price target on shares of Meta Platforms from $850.00 to $700.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, Scotiabank reiterated a "sector perform" rating and issued a $600.00 price objective (down from $700.00) on shares of Meta Platforms in a research report on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, forty-four have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, Meta Platforms currently has an average rating of "Moderate Buy" and an average target price of $787.86.

Meta Platforms Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company operates a global family of apps that includes Facebook, Instagram, Messenger, WhatsApp and Threads, enabling users to connect, communicate, share content and discover communities.

Meta generates most of its business through digital advertising displayed across its platforms. Its products serve individuals, creators, businesses and organizations in markets around the world, while its advertising tools help businesses reach audiences based on factors such as interests, activity and demographics.

Through its Reality Labs division, Meta develops virtual and augmented reality hardware, software and services, including the Meta Quest line of headsets and related experiences.

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