Meta Platforms (NASDAQ:META) Stock Price Up 2.7% - Here's Why

Key Points

• Meta Platforms' stock rose 2.7% during mid-day trading, closing at $786.90 after reaching a high of $790.50.
• Analysts have significantly increased their target prices for Meta, with Barclays raising it to $810.00 and Bank of America to $900.00, reflecting a strong overall "buy" rating.
• The company reported $7.14 earnings per share for the last quarter, exceeding analysts' expectations of $5.75, with revenue rising 21.6% year-over-year to $47.52 billion.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report)'s stock price traded up 2.7% during mid-day trading on Tuesday . The stock traded as high as $790.50 and last traded at $786.90. 5,695,307 shares changed hands during mid-day trading, a decline of 63% from the average session volume of 15,377,991 shares. The stock had previously closed at $765.87.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Raymond James Financial raised their price target on Meta Platforms from $750.00 to $900.00 and gave the stock a "strong-buy" rating in a research report on Thursday, July 31st. Bank of America raised their price target on Meta Platforms from $775.00 to $900.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Scotiabank raised their price target on Meta Platforms from $675.00 to $685.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 31st. Sanford C. Bernstein raised their price target on Meta Platforms from $775.00 to $900.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. Finally, HSBC upgraded Meta Platforms from a "hold" rating to a "buy" rating and lifted their target price for the stock from $610.00 to $900.00 in a report on Thursday, July 31st. Four research analysts have rated the stock with a hold rating, thirty-nine have given a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $822.41.

Meta Platforms Stock Up 0.3%

The company has a market capitalization of $1.96 trillion, a P/E ratio of 28.32, a PEG ratio of 1.62 and a beta of 1.27. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.15. The stock has a 50 day moving average price of $722.68 and a 200 day moving average price of $654.81.

Meta Platforms (NASDAQ:META - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The social networking company reported $7.14 EPS for the quarter, beating analysts' consensus estimates of $5.75 by $1.39. Meta Platforms had a return on equity of 39.33% and a net margin of 39.99%. The company had revenue of $47.52 billion during the quarter, compared to analysts' expectations of $44.55 billion. During the same period in the prior year, the company earned $5.16 EPS. Meta Platforms's revenue was up 21.6% compared to the same quarter last year. On average, research analysts anticipate that Meta Platforms, Inc. will post 26.7 earnings per share for the current fiscal year.

Meta Platforms Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 26th. Stockholders of record on Monday, June 16th were paid a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Monday, June 16th. Meta Platforms's dividend payout ratio is presently 7.60%.

Insider Activity

In other Meta Platforms news, insider Christopher K. Cox sold 60,000 shares of the stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $775.95, for a total transaction of $46,557,000.00. Following the completion of the sale, the insider directly owned 237,205 shares in the company, valued at approximately $184,059,219.75. This trade represents a 20.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Andrew Bosworth sold 22,449 shares of the stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $636.85, for a total value of $14,296,645.65. Following the sale, the chief technology officer owned 1,183 shares of the company's stock, valued at approximately $753,393.55. The trade was a 94.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 292,211 shares of company stock worth $215,232,155. Insiders own 13.61% of the company's stock.

Hedge Funds Weigh In On Meta Platforms

A number of hedge funds have recently added to or reduced their stakes in the stock. Bare Financial Services Inc bought a new position in shares of Meta Platforms during the second quarter valued at about $30,000. Inlight Wealth Management LLC purchased a new stake in Meta Platforms in the first quarter worth about $25,000. Barnes Dennig Private Wealth Management LLC purchased a new stake in Meta Platforms in the first quarter worth about $28,000. Evergreen Private Wealth LLC grew its holdings in Meta Platforms by 237.5% in the second quarter. Evergreen Private Wealth LLC now owns 54 shares of the social networking company's stock worth $40,000 after purchasing an additional 38 shares during the period. Finally, MJT & Associates Financial Advisory Group Inc. purchased a new stake in shares of Meta Platforms during the first quarter valued at approximately $33,000. Institutional investors and hedge funds own 79.91% of the company's stock.

Meta Platforms Company Profile

Meta Platforms, Inc engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.