FY2027 EPS Estimates for Meta Platforms Boosted by Analyst

Key Points

• Erste Group Bank raised Meta’s FY2027 EPS estimate to $35.13 from $34.92 and maintained a “Buy” rating, above the current full-year consensus estimate of $29.51.
• Meta’s latest quarterly results exceeded expectations, with EPS of $10.44 versus the $6.67 consensus and revenue of $56.31 billion, up 33.1% year over year.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $835.64, although shares recently traded near $593 and some firms have lowered their targets.

Meta Platforms, Inc. (NASDAQ:META - Free Report) - Equities research analysts at Erste Group Bank upped their FY2027 earnings per share estimates for Meta Platforms in a research note issued on Monday, July 27th. Erste Group Bank analyst H. Engel now anticipates that the social networking company will post earnings per share of $35.13 for the year, up from their previous forecast of $34.92. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Meta Platforms' current full-year earnings is $29.51 per share.

Meta Platforms (NASDAQ:META - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The social networking company reported $10.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.67 by $3.77. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The company had revenue of $56.31 billion during the quarter, compared to the consensus estimate of $55.56 billion. During the same quarter in the prior year, the company posted $6.43 EPS. The firm's revenue was up 33.1% on a year-over-year basis.

Several other equities analysts also recently commented on META. Wolfe Research lowered their price target on Meta Platforms from $850.00 to $800.00 and set an "outperform" rating on the stock in a report on Friday, April 10th. Citizens Jmp decreased their price objective on shares of Meta Platforms from $825.00 to $800.00 and set an "outperform" rating for the company in a report on Friday, July 10th. Roth Capital reiterated a "buy" rating on shares of Meta Platforms in a research note on Thursday, April 30th. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $725.00 target price (down from $825.00) on shares of Meta Platforms in a report on Thursday, April 30th. Finally, Benchmark began coverage on shares of Meta Platforms in a research report on Tuesday, June 2nd. They set a "buy" rating for the company. Five research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $835.64.

Meta Platforms Stock Down 0.1%

META opened at $593.41 on Wednesday. The business has a 50 day moving average price of $603.98 and a 200 day moving average price of $624.67. Meta Platforms has a twelve month low of $520.26 and a twelve month high of $796.25. The company has a debt-to-equity ratio of 0.24, a quick ratio of 2.35 and a current ratio of 2.35. The firm has a market cap of $1.50 trillion, a P/E ratio of 21.57, a price-to-earnings-growth ratio of 1.00 and a beta of 1.25.

Institutional Trading of Meta Platforms

A number of institutional investors and hedge funds have recently modified their holdings of the company. First National Bank Sioux Falls lifted its holdings in shares of Meta Platforms by 0.7% during the 4th quarter. First National Bank Sioux Falls now owns 2,001 shares of the social networking company's stock worth $1,321,000 after acquiring an additional 14 shares during the period. Levin Capital Strategies L.P. lifted its stake in Meta Platforms by 1.4% during the fourth quarter. Levin Capital Strategies L.P. now owns 984 shares of the social networking company's stock worth $649,000 after purchasing an additional 14 shares during the period. Vista Capital Partners Inc. boosted its holdings in Meta Platforms by 1.3% during the second quarter. Vista Capital Partners Inc. now owns 1,075 shares of the social networking company's stock valued at $794,000 after purchasing an additional 14 shares in the last quarter. Arcataur Capital Management LLC grew its stake in shares of Meta Platforms by 0.9% in the 4th quarter. Arcataur Capital Management LLC now owns 1,736 shares of the social networking company's stock valued at $1,146,000 after purchasing an additional 15 shares during the period. Finally, Acorn Creek Capital LLC grew its stake in shares of Meta Platforms by 0.7% in the 4th quarter. Acorn Creek Capital LLC now owns 2,118 shares of the social networking company's stock valued at $1,398,000 after purchasing an additional 15 shares during the period. 79.91% of the stock is currently owned by institutional investors.

Insider Activity at Meta Platforms

In related news, insider Curtis J. Mahoney sold 2,079 shares of Meta Platforms stock in a transaction dated 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 sale, the insider directly owned 1,118 shares of the company's stock, valued at $681,890.56. This trade represents a 65.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 of the company's stock, valued at approximately $5,708,013.06. This trade represents a 26.06% 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. In the last quarter, insiders have sold 37,859 shares of company stock worth $23,087,979. 13.53% of the stock is owned by company insiders.

Meta Platforms Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Monday, June 15th were given a $0.525 dividend. This represents a $2.10 annualized dividend and a yield of 0.4%. The ex-dividend date was Monday, June 15th. Meta Platforms's dividend payout ratio (DPR) is currently 7.63%.

Meta Platforms News Roundup

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

• Positive Sentiment: Analysts remain constructive ahead of earnings. Erste Group Bank raised its FY2027 EPS forecast to $35.13 from $34.92 and maintained a Buy rating, while Guggenheim reaffirmed its Buy rating with an $800 price target. Guggenheim rating reference
• Positive Sentiment: Meta’s advertising business is expected to benefit from stronger user engagement, higher ad impressions, improved AI targeting and pricing power. Investors are also watching for updates on Ray-Ban Meta smart glasses and the rollout of Meta AI in Threads direct messages. Meta advertising earnings preview
• Positive Sentiment: Meta and BlackRock formed a venture to develop a roughly $14 billion, one-gigawatt AI data-center campus in El Paso, Texas. The partnership may reduce Meta’s near-term balance-sheet burden by sharing construction financing while securing additional computing capacity. Meta BlackRock data center article
• Neutral Sentiment: Meta CEO Mark Zuckerberg supported open-weight AI models and argued that the U.S. should not broadly restrict Chinese AI models, positioning the company on the side of fewer regulatory limits but potentially increasing political scrutiny. Zuckerberg AI policy article
• Negative Sentiment: Investors are increasingly concerned that Meta’s projected $125 billion-to-$145 billion AI capital-spending program could pressure free cash flow and operating margins. The BlackRock data-center arrangement shares financing risk but does not eliminate long-term lease, depreciation and residual-value obligations. Meta AI data center financing article
• Negative Sentiment: Short interest has reportedly increased ahead of earnings, reflecting expectations for a volatile post-report move and concern that a strong quarterly beat may not offset weaker guidance on AI spending. Meta also faces extensive social-media litigation, including allegations that it disregarded research concerning harm to teenagers. Meta Tennessee litigation article
• Negative Sentiment: Meta COO Javier Olivan sold shares under a pre-arranged Rule 10b5-1 trading plan. Although the sales were scheduled, the transactions may add to investor caution before earnings.

Meta Platforms Company 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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