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

Key Points

• Meta saw unusually heavy options activity on Wednesday, with investors buying 710,657 call options, about 18% above the typical volume.
• The stock jumped 9.8% to $618.26 amid reports that Meta may build an AI cloud business to sell excess compute capacity, a move viewed as a potential new growth driver.
• There is still some overhang from legal and insider activity, including a multistate lawsuit over Instagram and Facebook addiction claims moving toward trial, while insiders have sold shares in recent months.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report) saw some unusual options trading on Wednesday. Investors bought 710,657 call options on the company. This is an increase of 18% compared to the typical volume of 602,303 call options.

Trending Headlines about Meta Platforms

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

• Positive Sentiment: Meta is reportedly building a cloud business that would let it sell spare AI compute capacity to third parties, potentially turning heavy infrastructure spending into a new profit source. Meta stock jumps on report of AI cloud business expansion plans
• Positive Sentiment: Reports that Meta could enter the AI compute market helped push the stock sharply higher, with investors viewing the move as a potential long-term growth driver. Meta Stock Rises on Report It's Building a Cloud Business. CoreWeave Drops.
• Neutral Sentiment: Commentary from analysts and media outlets is framing Meta’s AI push as a major strategic bet, but these pieces are largely opinion or outlook rather than new company-specific fundamentals. Meta Stock Price Prediction: The Forecast Sees a Path to $800+
• Neutral Sentiment: Meta’s reported plans to launch a prediction-market app add to speculation around new product expansion, but this looks less immediately material than the AI cloud news. Inside Zuckerberg's Reported Plan to Take On Kalshi and Polymarket in Prediction Markets
• Negative Sentiment: Meta lost a bid to dismiss a multistate lawsuit alleging Facebook and Instagram were designed to addict children, and the case is now headed toward trial, adding legal overhang. Meta Loses Bid to Dismiss States' Lawsuit Over Facebook and Instagram Addiction Claims as Judge Says Case Should Go to Trial

Analysts Set New Price Targets

A number of analysts recently commented on the stock. KeyCorp restated an "overweight" rating and issued a $760.00 price objective on shares of Meta Platforms in a research report on Thursday, April 30th. Royal Bank Of Canada reiterated an "outperform" rating and set a $810.00 target price on shares of Meta Platforms in a report on Monday, June 1st. Benchmark started coverage on Meta Platforms in a research note on Tuesday, June 2nd. They issued a "buy" rating for the company. Susquehanna upgraded Meta Platforms from a "positive" rating to a "positive" rating in a report on Tuesday, June 2nd. Finally, Truist Financial dropped their price target on Meta Platforms from $900.00 to $840.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Meta Platforms currently has a consensus rating of "Moderate Buy" and a consensus price target of $840.60.

Meta Platforms Stock Up 9.8%

META traded up $54.97 during trading on Wednesday, hitting $618.26. The company had a trading volume of 31,038,719 shares, compared to its average volume of 16,445,414. The company has a market capitalization of $1.56 trillion, a PE ratio of 22.46, a PEG ratio of 1.00 and a beta of 1.23. The company has a quick ratio of 2.35, a current ratio of 2.35 and a debt-to-equity ratio of 0.24. Meta Platforms has a one year low of $520.26 and a one year high of $796.25. The firm's 50-day moving average price is $607.50 and its 200 day moving average price is $629.23.

Meta Platforms (NASDAQ:META - Get Free Report) last released its earnings results on Wednesday, April 29th. The social networking company reported $10.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.67 by $3.77. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The firm had revenue of $56.31 billion during the quarter, compared to analysts' expectations of $55.56 billion. During the same quarter in the prior year, the company earned $6.43 EPS. The company's revenue was up 33.1% on a year-over-year basis. As a group, equities analysts expect that Meta Platforms will post 29.35 earnings per share for the current year.

Meta Platforms Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were issued a dividend of $0.525 per share. The ex-dividend date was Monday, June 15th. This represents a $2.10 dividend on an annualized basis and a dividend yield of 0.3%. Meta Platforms's dividend payout ratio (DPR) is presently 7.63%.

Insider Activity at Meta Platforms

In related news, insider Curtis J. Mahoney sold 2,079 shares of Meta Platforms 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 transaction, the insider owned 1,118 shares of the company's stock, valued at $681,890.56. This trade represents a 65.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 504 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $629.29, for a total transaction of $317,162.16. Following the transaction, the director owned 3,943 shares of the company's stock, valued at approximately $2,481,290.47. This represents a 11.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 39,013 shares of company stock worth $24,115,999 in the last ninety days. Company insiders own 13.53% of the company's stock.

Institutional Investors Weigh In On Meta Platforms

A number of hedge funds and other institutional investors have recently bought and sold shares of META. First National Bank Sioux Falls lifted its position in 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 buying an additional 14 shares in the last quarter. Levin Capital Strategies L.P. grew its holdings in shares of Meta Platforms by 1.4% in the 4th quarter. Levin Capital Strategies L.P. now owns 984 shares of the social networking company's stock valued at $649,000 after acquiring an additional 14 shares in the last quarter. Vista Capital Partners Inc. increased its position in shares of 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 last quarter. Arcataur Capital Management LLC raised its holdings in 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 worth $1,146,000 after acquiring an additional 15 shares in the last quarter. Finally, Acorn Creek Capital LLC boosted its position in Meta Platforms by 0.7% during the fourth 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 last quarter. Institutional investors and hedge funds own 79.91% of the company's stock.

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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