Prospera Financial Services Inc Purchases 1,020 Shares of Meta Platforms, Inc. $META

Key Points

• Prospera Financial Services increased its Meta position by 1.2%, purchasing 1,020 additional shares and bringing its holdings to 87,954 shares valued at approximately $49.6 million. Institutional investors collectively own 79.91% of Meta.
• Meta shares were trading at $568.97, down 3.5%, while the company’s latest quarterly revenue rose 28% year over year to $60.8 billion; however, earnings per share of $6.18 missed analysts’ $7.19 estimate. Meta also pays a quarterly dividend of $0.525 per share, yielding about 0.4%.
• Investors face significant legal and AI-spending risks: 29 states are suing Meta over alleged harm to children, while data-center investments and financing obligations raise concerns about future cash use. Analysts maintain a “Moderate Buy” consensus with an average price target of $785.32.

Prospera Financial Services Inc grew its position in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 1.2% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 87,954 shares of the social networking company's stock after buying an additional 1,020 shares during the period. Prospera Financial Services Inc's holdings in Meta Platforms were worth $49,567,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the company. RHL Group LLC bought a new stake in shares of Meta Platforms in the fourth quarter worth about $28,000. Strategic Wealth Advisors LLC bought a new stake in shares of Meta Platforms in the fourth quarter worth $29,000. Niles Investment Management LLC bought a new stake in Meta Platforms during the 4th quarter worth about $29,000. Axiom Investment Management LLC acquired a new position in Meta Platforms during the first quarter valued at approximately $36,000. Finally, Bayban raised its stake in shares of Meta Platforms by 100.0% during the 1st quarter. Bayban now owns 70 shares of the social networking company's stock worth $40,000 after purchasing an additional 35 shares in the last quarter. Institutional investors own 79.91% of the company's stock.

Meta Platforms Trading Down 3.5%

Shares of Meta Platforms stock opened at $568.97 on Tuesday. The business has a fifty day simple moving average of $595.62 and a two-hundred day simple moving average of $619.31. Meta Platforms, Inc. has a 1 year low of $520.26 and a 1 year high of $790.80. The company has a market capitalization of $1.45 trillion, a price-to-earnings ratio of 21.43, a P/E/G ratio of 1.01 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

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 analyst estimates of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. Meta Platforms's revenue for the quarter was up 28.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $7.14 earnings per share. Research analysts forecast that Meta Platforms, Inc. will post 28.5 EPS for the current year.

Meta Platforms Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were issued a dividend of $0.525 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 annualized dividend and a dividend yield of 0.4%. Meta Platforms's payout ratio is presently 7.91%.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta is reportedly considering selling excess data-center capacity to third parties, which could help monetize its substantial AI infrastructure spending and create an additional revenue stream. The plan remains exploratory. Should You Buy Meta Platforms Stock Below $600 Before Mark Zuckerberg Unveils Its AI Cloud Business?
• Neutral Sentiment: Alibaba’s release of a laptop-ready Qwen model and open model weights underscores intensifying competition in AI, although the immediate financial impact on Meta is uncertain. Alibaba answers Meta's AI challenge with new laptop-ready model
• Negative Sentiment: Meta is facing a major federal trial brought by 29 state attorneys general, who allege Facebook and Instagram were deliberately designed to addict children and that the company misled the public about related risks. The states are seeking financial penalties—potentially as high as $1.4 trillion—and court-ordered product changes. Meta faces ‘astronomical' consequences as legal fight reaches critical moment in California
• Negative Sentiment: The legal overhang intensified after Meta recently lost a nearly $1 billion judgment in a similar New Mexico case. Investors are concerned that an adverse outcome could produce significant financial penalties, costly changes to platform design and broader regulatory restrictions, with thousands of related lawsuits potentially following. Meta Faces 29 States in Court Tuesday
• Negative Sentiment: Investors are also scrutinizing Meta’s AI spending. Data-center construction is consuming cash, while reported off-balance-sheet financing arrangements and residual-value guarantees could create future obligations if AI assets become unprofitable or underused. What Could Meta Platforms Off Balance Sheet AI Financing Mean For Investors?

Insider Transactions at Meta Platforms

In other news, insider Curtis J. Mahoney sold 2,079 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $609.92, for a total transaction of $1,268,023.68. Following the completion of the sale, the insider owned 1,118 shares in the company, valued at $681,890.56. The trade was a 65.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 3,348 shares of the company's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $600.97, for a total value of $2,012,047.56. Following the completion of the transaction, the chief operating officer directly owned 9,498 shares in the company, valued at $5,708,013.06. The trade was a 26.06% 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 quarter, insiders sold 17,772 shares of company stock worth $10,823,658. 13.53% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research firms recently weighed in on META. Needham & Company LLC reissued a "hold" rating on shares of Meta Platforms in a research note on Wednesday, July 8th. Phillip Securities raised shares of Meta Platforms to a "strong-buy" rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $725.00 price target (down from $825.00) on shares of Meta Platforms in a research note on Thursday, April 30th. Barclays decreased their price objective on shares of Meta Platforms from $830.00 to $780.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Finally, Wells Fargo & Company lowered their price objective on shares of Meta Platforms from $835.00 to $640.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $785.32.

Meta Platforms Profile

Meta Platforms, Inc NASDAQ: META, formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta's core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

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