NFJ Investment Group LLC Trims Position in Meta Platforms, Inc. $META

Key Points

• NFJ Investment Group cut its Meta position by 53.2% in the second quarter, selling 16,546 shares and retaining 14,539 shares valued at approximately $8.19 million. Hedge funds and other institutions still own 79.91% of Meta.
• Meta’s latest quarterly results were mixed: earnings of $6.18 per share missed the $7.19 consensus estimate, while revenue reached $60.8 billion, up 28% year over year and above expectations.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $788.88 versus the stock’s reported $665.60 price. The company also announced a quarterly dividend of $0.525 per share.

NFJ Investment Group LLC lowered its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 53.2% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 14,539 shares of the social networking company's stock after selling 16,546 shares during the quarter. NFJ Investment Group LLC's holdings in Meta Platforms were worth $8,190,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of META. Objective Capital Management LLC boosted its holdings in shares of Meta Platforms by 2.8% during the fourth quarter. Objective Capital Management LLC now owns 553 shares of the social networking company's stock worth $365,000 after purchasing an additional 15 shares during the last quarter. Watchman Group Inc. boosted its stake in Meta Platforms by 0.3% in the 1st quarter. Watchman Group Inc. now owns 5,091 shares of the social networking company's stock worth $2,913,000 after buying an additional 15 shares during the last quarter. Penney Financial LLC boosted its stake in Meta Platforms by 3.9% in the 1st quarter. Penney Financial LLC now owns 399 shares of the social networking company's stock worth $228,000 after buying an additional 15 shares during the last quarter. Barnes Pettey Financial Advisors LLC grew its holdings in Meta Platforms by 1.0% in the 1st quarter. Barnes Pettey Financial Advisors LLC now owns 1,519 shares of the social networking company's stock valued at $869,000 after buying an additional 15 shares during the period. Finally, CWS Financial Advisors LLC increased its stake in shares of Meta Platforms by 1.7% during the 1st quarter. CWS Financial Advisors LLC now owns 985 shares of the social networking company's stock valued at $564,000 after acquiring an additional 16 shares during the last quarter. 79.91% of the stock is owned by hedge funds and other institutional investors.

Meta Platforms Price Performance

META stock opened at $665.60 on Tuesday. The firm has a market cap of $1.70 trillion, a P/E ratio of 25.07, a price-to-earnings-growth ratio of 1.12 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.23 and a current ratio of 2.23. Meta Platforms, Inc. has a 1 year low of $520.26 and a 1 year high of $790.80. The stock has a 50-day simple moving average of $602.89 and a 200-day simple moving average of $608.92.

Meta Platforms (NASDAQ:META - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing analysts' consensus estimates of $7.19 by ($1.01). Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The company had revenue of $60.80 billion during the quarter, compared to analysts' expectations of $60.22 billion. During the same quarter in the prior year, the company earned $7.14 EPS. The firm's revenue was up 28.0% compared to the same quarter last year. On average, equities analysts predict that Meta Platforms, Inc. will post 28.17 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

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

Insiders Place Their Bets

In other Meta Platforms news, CFO Susan J. Li sold 9,196 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were 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 directly owned 13,186 shares of the company's stock, valued at $7,260,343.46. This represents a 41.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bosworth sold 7,848 shares of Meta Platforms stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total value of $4,379,184.00. Following the sale, the chief technology officer directly owned 828 shares in the company, valued at approximately $462,024. The trade was a 90.46% decrease in their ownership of the stock. 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 60,183 shares of company stock valued at $36,673,495. Corporate insiders own 13.53% of the company's stock.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: AI strategy is boosting investor confidence. Goldman Sachs reiterated its bullish view, citing the rollout of Meta’s Muse AI agent and a recent legal settlement as potential catalysts. Analysts also argue that Meta’s valuation remains attractive relative to its growth, with one estimate assigning an $817 price target. Why is Meta stock gaining in premarket today
• Positive Sentiment: Advertising momentum supports earnings expectations. A bullish analysis highlighted second-quarter ad impressions growth of 14% and a 12% increase in average ad prices. Meta’s forward PEG ratio was also described as below both the sector median and its five-year average, suggesting investors may still view the stock as reasonably valued despite its recent rally. Meta Platforms: AI Spending Is Starting To Pay Off
• Positive Sentiment: Meta is benefiting from a shift in AI sentiment. Shares of Meta and Alphabet gained while AI-chip stocks weakened after several AI executives called for a slower approach to developing frontier models. Investors may be favoring Meta because its large user base and advertising business provide diversified ways to monetize AI. Why Google and Meta Stocks Are the Big Winners From the Latest AI Concerns
• Neutral Sentiment: AI investment is creating both opportunity and financial risk. AI-related debt issuance has surged, and Meta is viewed as better positioned than highly leveraged infrastructure providers because of its stronger cash generation. Nevertheless, the scale of data-center spending could pressure free cash flow and increase execution risk. AI-Related Debt Sales Are Near $500 Billion
• Negative Sentiment: Meta faces a proposed class-action lawsuit over smart-glasses privacy. Parents and children in California and Illinois allege that the company’s unreleased “NameTag” facial-recognition feature improperly used Facebook and Instagram data. The case could create legal costs, regulatory scrutiny and reputational damage if the allegations gain traction. Meta Faces Lawsuit Over Smart Glasses Facial Recognition
• Negative Sentiment: Content-moderation and insider-selling headlines add caution. Meta’s Oversight Board urged it not to replace professional fact-checking with Community Notes, while a reported insider stock sale worth about $13 million may weigh modestly on sentiment. These developments raise governance and reputational concerns, although neither necessarily changes Meta’s underlying operating outlook. Oversight Board asks Meta not to replace fact-checking with Community Notes

Analysts Set New Price Targets

META has been the topic of several research analyst reports. Citigroup decreased their target price on shares of Meta Platforms from $850.00 to $800.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. DA Davidson cut 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. Piper Sandler reiterated an "overweight" rating and issued a $785.00 price target (down from $800.00) on shares of Meta Platforms in a report on Thursday, July 30th. Truist Financial lowered their price objective on shares of Meta Platforms from $770.00 to $763.00 and set a "buy" rating for the company in a research note on Thursday, August 27th. Finally, Robert W. Baird dropped their price objective on Meta Platforms from $830.00 to $750.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, Meta Platforms presently has a consensus rating of "Moderate Buy" and an average target price of $788.88.

Meta Platforms Company 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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