Texas Capital Bank Wealth Management Services Inc Reduces Position in Meta Platforms, Inc. $META

Key Points

• Texas Capital Bank Wealth Management Services cut its Meta stake by 11.5% in the second quarter, selling 2,905 shares and retaining 22,460 shares valued at approximately $12.65 million. Institutional investors overall own 79.91% of Meta’s stock.
• Meta reported quarterly revenue of $60.8 billion, up 28% year over year, though earnings per share of $6.18 missed the $7.19 analyst consensus. The company also declared a quarterly dividend of $0.525 per share, equivalent to a 0.3% annual yield.
• Investor sentiment is supported by the early traction of Meta’s AI agent Muse and bullish analyst views, including JPMorgan’s upgrade and $820 price target. However, monetization, privacy, regulatory and AI execution risks remain concerns.

Texas Capital Bank Wealth Management Services Inc trimmed its stake in Meta Platforms, Inc. (NASDAQ:META - Free Report) by 11.5% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 22,460 shares of the social networking company's stock after selling 2,905 shares during the quarter. Meta Platforms makes up 0.7% of Texas Capital Bank Wealth Management Services Inc's portfolio, making the stock its 23rd biggest holding. Texas Capital Bank Wealth Management Services Inc's holdings in Meta Platforms were worth $12,651,000 as of its most recent filing with the Securities & Exchange Commission.

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

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Muse gains early consumer traction: Meta’s new AI agent reportedly reached No. 2 or No. 3 on the U.S. App Store shortly after its launch. Muse can interact with social platforms and outside services, while paid tiers priced at $20 and $100 per month create a potential new revenue stream beyond advertising. Meta's AI agent Muse is now the No. 2 app in the US
• Positive Sentiment: JPMorgan upgraded the stock: JPMorgan raised Meta to Overweight from Neutral and increased its price target to $820, citing meaningful growth potential from frontier AI models and agentic products. The upgrade helped reinforce the bullish view that Meta can diversify beyond advertising. JPMorgan upgrades Meta on AI models and agents
• Positive Sentiment: AI infrastructure optionality: Analysts believe Meta’s large AI-compute investments could eventually support a cloud-computing or infrastructure business, adding an opportunity not currently reflected in the valuation. The company’s strong revenue growth and substantial cash resources support this investment thesis.
• Positive Sentiment: Quarterly dividend declared: Meta announced a $0.525-per-share dividend payable September 28 to shareholders of record September 21. While the yield is modest, the payout signals confidence in ongoing cash generation.
• Neutral Sentiment: Legal settlement viewed as manageable: Commentary suggests Meta’s potential $18 billion social-media-addiction settlement, spread over a decade, may have a limited impact on annual free cash flow. Resolving the litigation could also remove an overhang, but the headline liability remains material.
• Negative Sentiment: Monetization and privacy concerns: Muse’s usefulness depends on access to users’ inboxes, accounts and payments, raising adoption and privacy questions. Analysts remain uncertain about conversion rates and near-term revenue.
• Negative Sentiment: AI execution and regulatory risks: A prominent AI researcher is leaving Meta for Anthropic, while an internal effort to capture employee screens for AI training reportedly triggered resistance. Meta is also discussing possible teen social-media restrictions in South Korea, and TikTok rejected Meta advertisements urging participation in a child-safety settlement.

Meta Platforms Trading Up 0.6%

META stock opened at $648.03 on Friday. 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 company has a market cap of $1.65 trillion, a price-to-earnings ratio of 24.41, a PEG ratio of 1.11 and a beta of 1.25. The business has a fifty day simple moving average of $601.58 and a 200-day simple moving average of $608.94. Meta Platforms, Inc. has a 52 week low of $520.26 and a 52 week high of $790.80.

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). The firm had revenue of $60.80 billion for 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%. Meta Platforms's revenue was up 28.0% on a year-over-year basis. During the same period last year, the firm posted $7.14 EPS. On average, equities research analysts expect that Meta Platforms, Inc. will post 28.17 EPS for the current 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 issued 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 payout ratio is presently 7.91%.

Insider Buying and Selling at Meta Platforms

In other Meta Platforms news, COO Javier Olivan sold 2,838 shares of Meta Platforms stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $616.71, for a total transaction of $1,750,222.98. Following the transaction, the chief operating officer directly owned 11,662 shares of the company's stock, valued at $7,192,072.02. The trade was a 19.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan J. Li sold 9,196 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the sale, the chief financial officer owned 13,186 shares of the company's stock, valued at approximately $7,260,343.46. This represents a 41.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 61,581 shares of company stock worth $37,512,295. Company insiders own 13.53% of the company's stock.

Analysts Set New Price Targets

META has been the topic of several analyst reports. KeyCorp decreased their price objective on Meta Platforms from $790.00 to $780.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Scotiabank reiterated a "sector perform" rating and set a $600.00 target price on shares of Meta Platforms in a research report on Thursday, July 30th. Piper Sandler reissued an "overweight" rating and issued a $785.00 price target (down from $800.00) on shares of Meta Platforms in a research note on Thursday, July 30th. Guggenheim reissued a "buy" rating and issued a $800.00 price target on shares of Meta Platforms in a research note on Tuesday, July 28th. Finally, Erste Group Bank upgraded Meta Platforms from a "hold" rating to a "buy" rating in a report on Tuesday, July 7th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $787.54.

About Meta Platforms

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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