Primecap Management Co. CA Trims Position in Meta Platforms, Inc. $META

Key Points

• Primecap Management reduced its Meta Platforms position by 8.5% in the second quarter, selling 65,950 shares and retaining 708,290 shares valued at approximately $399 million. Institutional investors collectively own 79.91% of Meta’s stock.
• Analyst sentiment remains broadly positive, with Meta holding a consensus “Moderate Buy” rating and an average price target of $788.88, despite several firms recently lowering their targets.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year, but missed earnings expectations. Insiders sold 81,758 shares worth about $51.2 million during the quarter, while the company announced a $0.525 quarterly dividend.

Primecap Management Co. CA lowered its position in shares of Meta Platforms, Inc. (NASDAQ:META - Free Report) by 8.5% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 708,290 shares of the social networking company's stock after selling 65,950 shares during the quarter. Primecap Management Co. CA's holdings in Meta Platforms were worth $398,973,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Auto Owners Insurance Co boosted its holdings in shares of 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 purchasing an additional 105,154,977 shares during the last quarter. Geode Capital Management LLC increased its stake in Meta Platforms by 1.7% in the fourth 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 purchasing an additional 878,396 shares during the last quarter. Norges Bank purchased a new position in Meta Platforms during the fourth quarter worth about $22,152,075,000. Bank of America Corp DE lifted 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 buying an additional 2,673,494 shares during the period. Finally, Invesco Ltd. boosted its stake in 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 owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently commented on META. Truist Financial dropped 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. Monness Crespi & Hardt decreased their target price on shares of Meta Platforms from $890.00 to $730.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Rothschild & Co Redburn boosted their price objective on shares of Meta Platforms from $900.00 to $1,000.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Weiss Ratings lowered Meta Platforms from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. Finally, Scotiabank reiterated a "sector perform" rating and issued a $600.00 target price on shares of Meta Platforms in a report on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $788.88.

Insider Buying and Selling at Meta Platforms

In other news, CTO Andrew Bosworth sold 7,848 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total value of $4,379,184.00. Following the completion of the transaction, the chief technology officer directly owned 828 shares in the company, valued at approximately $462,024. This represents a 90.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Christopher Cox sold 20,000 shares of the firm's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $650.28, for a total transaction of $13,005,600.00. Following the sale, the insider directly owned 244,516 shares of the company's stock, valued at approximately $159,003,864.48. The trade was a 7.56% 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. In the last quarter, insiders sold 81,758 shares of company stock valued at $51,214,020. 13.53% of the stock is owned by company insiders.

Meta Platforms Stock Down 2.4%

Shares of Meta Platforms stock opened at $665.75 on Friday. The company has a fifty day moving average price of $606.33 and a 200 day moving average price of $609.79. 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 twelve month low of $520.26 and a twelve month high of $790.80. The stock 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 released its quarterly earnings data 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). The company had revenue of $60.80 billion during 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%. The company's revenue for the quarter was up 28.0% compared to the same quarter last year. During the same period last year, the business earned $7.14 earnings per share. Equities research analysts forecast that Meta Platforms, Inc. will post 27.93 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Stockholders of record on Monday, September 21st will be paid a dividend of $0.525 per share. The ex-dividend date is 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 currently 7.91%.

Trending Headlines about 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 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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