Meta Platforms (NASDAQ:META) Shares Up 4.2% on Analyst Upgrade

Key Points

• Meta shares rose 4.2% after Arete Research upgraded the stock from hold to strong-buy and set a $735 price target. The stock traded as high as $624.15 on heavier-than-normal volume.
• Analyst sentiment remains broadly upbeat, with several firms reiterating or raising price targets and the consensus rating staying at Moderate Buy. MarketBeat reports an average price target of $840.60.
• Recent company developments include new enterprise AI tools for WhatsApp, Messenger, and Instagram and a partial legal win in the EU over its Marketplace “gatekeeper” label. The article also notes insider selling, though the transactions were made under pre-arranged trading plans.

Shares of Meta Platforms, Inc. (NASDAQ:META - Get Free Report) shot up 4.2% on Wednesday after Arete Research upgraded the stock from a hold rating to a strong-buy rating. Arete Research now has a $735.00 price target on the stock. Meta Platforms traded as high as $624.15 and last traded at $622.98. 22,044,625 shares traded hands during mid-day trading, an increase of 38% from the average session volume of 16,013,209 shares. The stock had previously closed at $597.63.

META has been the subject of several other reports. Wells Fargo & Company dropped their price objective on shares of Meta Platforms from $770.00 to $765.00 and set an "overweight" rating for the company in a research note on Wednesday, May 20th. Barclays boosted their target price on shares of Meta Platforms from $800.00 to $830.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. TD Cowen decreased their price objective on Meta Platforms from $820.00 to $800.00 and set a "buy" rating for the company in a report on Thursday, April 30th. KeyCorp restated an "overweight" rating and issued a $760.00 price objective on shares of Meta Platforms in a report on Thursday, April 30th. Finally, Stifel Nicolaus decreased their price objective on Meta Platforms from $805.00 to $780.00 and set a "buy" rating for the company in a report on Friday, May 1st. Three investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Meta Platforms currently has a consensus rating of "Moderate Buy" and an average price target of $840.60.

Insider Activity at Meta Platforms

In related news, CTO Andrew Bosworth sold 7,847 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $607.83, for a total value of $4,769,642.01. Following the completion of the transaction, the chief technology officer directly owned 414 shares of the company's stock, valued at $251,641.62. This trade represents a 94.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Curtis J. Mahoney sold 2,079 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $609.92, for a total transaction of $1,268,023.68. Following the completion of the transaction, the insider directly owned 1,118 shares of the company's stock, valued at $681,890.56. The trade was a 65.03% 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. Over the last quarter, insiders sold 40,890 shares of company stock valued at $25,315,558. Company insiders own 13.53% of the company's stock.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta launched an enterprise-focused AI “business agent” for WhatsApp, Messenger, and Instagram, expanding its AI monetization strategy beyond advertising. Reuters: Meta launches enterprise-focused AI 'business agent' to automate daily operations
• Positive Sentiment: An EU court handed Meta a partial victory by backing its challenge to the Marketplace “gatekeeper” label, which could ease regulatory pressure in Europe. Reuters: EU court backs Meta fight against gatekeeper label for Marketplace, but not for Messenger
• Positive Sentiment: Arete Research upgraded Meta to Strong Buy with a $735 price target, while other firms reiterated bullish views, signaling continued analyst confidence. Finviz / The Fly / Zacks reference
• Neutral Sentiment: Meta expanded teen safety controls globally, a move that may help with regulators but is unlikely to be a near-term growth driver. Reuters: Meta expands teen content controls globally, tests new Instagram tool to diversify feeds
• Negative Sentiment: Reuters reported a chatbot/security breach tied to Meta’s AI support tools, highlighting risks as the company automates more user-facing functions. Reuters: High-profile Meta AI chatbot breach spotlights security risks of automation

Hedge Funds Weigh In On Meta Platforms

Several hedge funds and other institutional investors have recently bought and sold shares of META. Westchester Capital Management Inc. acquired a new position in Meta Platforms in the 3rd quarter worth approximately $26,000. RHL Group LLC purchased a new stake in Meta Platforms in the 4th 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 purchased a new stake in Meta Platforms in the 4th quarter worth approximately $29,000. Finally, Axiom Investment Management LLC purchased a new stake in Meta Platforms in the 1st quarter worth approximately $36,000. Institutional investors and hedge funds own 79.91% of the company's stock.

Meta Platforms Trading Up 4.2%

The company has a current ratio of 2.35, a quick ratio of 2.35 and a debt-to-equity ratio of 0.24. The company has a 50-day simple moving average of $617.71 and a 200 day simple moving average of $636.73. The firm has a market cap of $1.58 trillion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 1.06 and a beta of 1.23.

Meta Platforms (NASDAQ:META - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The social networking company reported $10.44 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 business had revenue of $56.31 billion for the quarter, compared to analyst estimates of $55.56 billion. During the same quarter in the prior year, the firm posted $6.43 EPS. The business's quarterly revenue was up 33.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Meta Platforms, Inc. will post 29.35 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Monday, June 15th will be given a $0.525 dividend. This represents a $2.10 annualized dividend and a yield of 0.3%. The ex-dividend date is Monday, June 15th. Meta Platforms's dividend payout ratio is currently 7.63%.

About Meta Platforms

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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