Meta Platforms Sees Unusually High Options Volume (NASDAQ:META)

Key Points

• Meta saw unusually heavy options activity on Wednesday, with traders buying 941,775 call options, about 61% above its normal daily call volume.
• The stock rose 3.7% to $635.26 amid higher-than-average trading volume, while Meta’s recent earnings beat estimates with $10.44 EPS on $56.31 billion in revenue.
• Analysts remain broadly bullish despite some price target cuts, with Meta holding an average “Moderate Buy” rating and a consensus target of $840.19.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report) saw some unusual options trading activity on Wednesday. Traders acquired 941,775 call options on the company. This represents an increase of 61% compared to the typical daily volume of 586,031 call options.

Meta Platforms Trading Up 3.7%

Shares of NASDAQ:META traded up $22.92 during midday trading on Wednesday, reaching $635.26. The company's stock had a trading volume of 22,439,969 shares, compared to its average volume of 15,703,699. The firm has a market capitalization of $1.61 trillion, a price-to-earnings ratio of 23.09, a PEG ratio of 1.08 and a beta of 1.25. 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 50 day moving average price of $617.09 and a two-hundred day moving average price of $636.70. Meta Platforms has a fifty-two week low of $520.26 and a fifty-two week high of $796.25.

Meta Platforms (NASDAQ:META - Get Free Report) last released its earnings results 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. The business had revenue of $56.31 billion during the quarter, compared to analysts' expectations of $55.56 billion. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The firm's revenue was up 33.1% on a year-over-year basis. During the same quarter last year, the firm posted $6.43 earnings per share. As a group, analysts forecast that Meta Platforms will post 29.49 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages recently weighed in on META. Wolfe Research reduced their price objective on Meta Platforms from $850.00 to $800.00 and set an "outperform" rating on the stock in a research report on Friday, April 10th. Jefferies Financial Group upped their price objective on Meta Platforms from $910.00 to $1,000.00 and gave the company a "buy" rating in a research note on Thursday, January 29th. Evercore raised their price objective on shares of Meta Platforms from $875.00 to $900.00 and gave the company an "outperform" rating in a report on Thursday, January 29th. Bank of America reduced their target price on shares of Meta Platforms from $885.00 to $820.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Finally, Mizuho decreased their price target on shares of Meta Platforms from $850.00 to $835.00 and set an "outperform" rating for the company in a research report on Tuesday, May 5th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, Meta Platforms currently has an average rating of "Moderate Buy" and an average price target of $840.19.

Meta Platforms News Roundup

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

• Positive Sentiment: Meta launched global subscriptions for Instagram, Facebook, and WhatsApp, while also testing new subscription products for businesses, creators, and Meta AI users, creating additional revenue opportunities. Meta launches Instagram, Facebook, and WhatsApp subscriptions, with more to come, including AI plans
• Positive Sentiment: Analysts and market commentary highlighted solid momentum in Meta’s ad business, with AI improving engagement and pricing power, which supports revenue growth and investor sentiment. META Rides on Solid Momentum in Ad Business: A Sign of More Upside?
• Positive Sentiment: Reports noted that Meta’s AI model improvements helped drive a 3.5x increase in ad clicks on Facebook and better conversion rates on Instagram, underscoring the payoff from its AI spending. Nvidia Just Revealed Meta’s Secret AI Model Led to 3.5x Increase in Ad Clicks
• Positive Sentiment: Several recent articles argued Meta remains a long-term growth or value opportunity, reflecting continued bullish investor interest after the recent pullback. Why Meta Platforms (META) is a Top Growth Stock for the Long-Term

Insider Activity at Meta Platforms

In related news, CTO Andrew Bosworth sold 7,847 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $607.83, for a total transaction of $4,769,642.01. Following the completion of the transaction, the chief technology officer directly owned 414 shares in the company, valued at $251,641.62. This represents a 94.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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, CFO Susan J. Li sold 9,195 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $607.84, for a total transaction of $5,589,088.80. Following the completion of the transaction, the chief financial officer directly owned 13,186 shares of the company's stock, valued at approximately $8,014,978.24. The trade was a 41.08% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 95,471 shares of company stock valued at $60,616,955. 13.53% of the stock is owned by insiders.

Institutional Trading of Meta Platforms

Several hedge funds have recently modified their holdings of META. First National Bank Sioux Falls grew its stake in shares of Meta Platforms by 0.7% in the 4th quarter. First National Bank Sioux Falls now owns 2,001 shares of the social networking company's stock valued at $1,321,000 after buying an additional 14 shares during the period. Levin Capital Strategies L.P. boosted its holdings in Meta Platforms by 1.4% in the fourth quarter. Levin Capital Strategies L.P. now owns 984 shares of the social networking company's stock worth $649,000 after acquiring an additional 14 shares in the last quarter. Vista Capital Partners Inc. grew its stake in Meta Platforms by 1.3% in the second quarter. Vista Capital Partners Inc. now owns 1,075 shares of the social networking company's stock valued at $794,000 after acquiring an additional 14 shares during the period. Bruce G. Allen Investments LLC grew its stake in Meta Platforms by 2.9% in the third quarter. Bruce G. Allen Investments LLC now owns 539 shares of the social networking company's stock valued at $396,000 after acquiring an additional 15 shares during the period. Finally, Arcataur Capital Management LLC increased its holdings in shares of Meta Platforms by 0.9% during the fourth quarter. Arcataur Capital Management LLC now owns 1,736 shares of the social networking company's stock valued at $1,146,000 after acquiring an additional 15 shares in the last quarter. Institutional investors own 79.91% of the company's stock.

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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