Nicholas Investment Partners LP Makes New $1.58 Million Investment in Meta Platforms, Inc. $META

Key Points

• Nicholas Investment Partners initiated a $1.58 million position in Meta Platforms by purchasing 2,798 shares. Institutional investors and hedge funds collectively own 79.91% of Meta’s stock.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year and slightly above estimates, but earnings of $6.18 per share missed consensus by $1.01. The company also declared a quarterly dividend of $0.525 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $788.88, though targets were recently lowered by several firms. Investors are also weighing heavy AI-related spending, declining free cash flow, legal and reputational pressures, and insider stock sales.

Nicholas Investment Partners LP purchased a new stake in Meta Platforms, Inc. (NASDAQ:META - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 2,798 shares of the social networking company's stock, valued at approximately $1,576,000.

Other institutional investors and hedge funds also recently modified their holdings of the company. Auto Owners Insurance Co grew its stake in shares of Meta Platforms by 76,587.7% during the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company's stock worth $69,502,379,000 after acquiring an additional 105,154,977 shares in the last quarter. Geode Capital Management LLC raised its holdings in Meta Platforms by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company's stock worth $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 worth approximately $22,152,075,000. Bank of America Corp DE raised its position in Meta Platforms by 14.6% during the first quarter. Bank of America Corp DE now owns 21,038,035 shares of the social networking company's stock worth $12,036,491,000 after acquiring an additional 2,673,494 shares in the last quarter. Finally, Invesco Ltd. raised 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 valued at $12,013,948,000 after purchasing an additional 1,046,715 shares during the period. 79.91% of the stock is owned by institutional investors and hedge funds.

Meta Platforms Stock Down 2.4%

Meta Platforms stock opened at $665.75 on Friday. The company's 50-day moving average price is $606.33 and its two-hundred day moving average price is $609.79. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.32. The stock has a market cap of $1.70 trillion, a P/E ratio of 25.08, a P/E/G ratio of 1.16 and a beta of 1.25. Meta Platforms, Inc. has a twelve month low of $520.26 and a twelve month high of $790.80.

Meta Platforms (NASDAQ:META - Get Free Report) last issued its quarterly earnings data 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 return on equity of 33.18% and a net margin of 29.83%.The firm had revenue of $60.80 billion for the quarter, compared to the consensus estimate of $60.22 billion. During the same quarter in the prior year, the firm earned $7.14 EPS. The company's revenue was up 28.0% on a year-over-year basis. As a group, analysts expect that Meta Platforms, Inc. will post 27.93 EPS for the current year.

Meta Platforms Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 28th. Investors 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 yield of 0.3%. Meta Platforms's payout ratio is 7.91%.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. TD Cowen reduced their price target on Meta Platforms from $800.00 to $750.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Benchmark restated a "hold" rating on shares of Meta Platforms in a research note on Thursday, August 27th. Mizuho set a $750.00 price objective on Meta Platforms in a research report on Thursday, July 30th. Bank of America reduced their target price on Meta Platforms from $835.00 to $810.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Finally, Robert W. Baird decreased their target price on Meta Platforms from $830.00 to $750.00 and set an "outperform" rating on the stock in a report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, Meta Platforms currently has a consensus rating of "Moderate Buy" and an average target price of $788.88.

Insiders Place Their Bets

In other Meta Platforms news, CAO Aaron Anderson sold 3,240 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $618.06, for a total value of $2,002,514.40. Following the transaction, the chief accounting officer directly owned 6,271 shares of the company's stock, valued at $3,875,854.26. This represents a 34.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 20,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $675.23, for a total value of $13,504,600.00. Following the transaction, the insider owned 224,516 shares in the company, valued at $151,599,938.68. The trade was a 8.18% decrease in their position. 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 worth $51,214,020 over the last three months. 13.53% of the stock is currently owned by corporate insiders.

Key Headlines 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 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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