Meta Platforms (NASDAQ:META) Shares Down 4% on Insider Selling

Key Points

• Meta shares fell 4% on Thursday, closing at $605.08 after trading as low as $583.80; trading volume was 54% above average.
• COO Javier Olivan sold a total of 1,575 shares for about $967,000. Both sales were made under pre-arranged Rule 10b5-1 plans.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $833.12; 50 analysts rate the stock Buy or Strong Buy and seven rate it Hold.

Meta Platforms, Inc. (NASDAQ:META - Get Free Report) shares traded down 4% during trading on Thursday following insider selling activity. The company traded as low as $583.80 and last traded at $605.08. Approximately 27,948,845 shares were traded during trading, an increase of 54% from the average session volume of 18,156,109 shares. The stock had previously closed at $630.00.

Specifically, COO Javier Olivan sold 629 shares of the stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $614.15, for a total value of $386,300.35. Following the transaction, the chief operating officer owned 833 shares in the company, valued at approximately $511,586.95. This represents a 43.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 946 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $614.15, for a total value of $580,985.90. Following the completion of the sale, the chief operating officer directly owned 4,094 shares of the company's stock, valued at $2,514,330.10. This trade represents a 18.77% 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.

Wall Street Analyst Weigh In

META has been the topic of a number of research reports. Citizens Jmp reaffirmed a "market outperform" rating and set a $885.00 target price on shares of Meta Platforms in a research report on Thursday, October 22nd. Pivotal Research lifted their price target on shares of Meta Platforms from $930.00 to $960.00 and gave the company a "buy" rating in a research report on Thursday, October 22nd. Benchmark restated a "hold" rating on shares of Meta Platforms in a research note on Thursday, August 27th. Rosenblatt Securities restated a "buy" rating and set a $886.00 price objective on shares of Meta Platforms in a report on Tuesday, October 20th. Finally, Evercore reaffirmed an "outperform" rating on shares of Meta Platforms in a research note on Thursday, October 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $833.12.

Key Stories Impacting Meta Platforms

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

• Positive Sentiment: Meta expanded access to Muse Voice, allowing U.S. users to call and video chat with its AI assistant. Wider consumer adoption could support Meta’s AI ambitions, though the financial impact is not yet clear. Article: Meta says US users can now video chat with their Muse AI avatar
• Positive Sentiment: Meta acquired Conductor, an AI coding startup that uses multiple agents to work on software projects in parallel. The deal could strengthen its AI tools and engineering capabilities, although terms were not reported. Article: Meta acquires AI coding startup Conductor
• Neutral Sentiment: Meta and other tech companies sued to block a California law restricting social-media algorithms for young users. A successful challenge could preserve how Meta personalizes content, but the litigation adds regulatory uncertainty. Article: Google, Meta, TikTok sue to block California youth social media law
• Negative Sentiment: Meta’s AI buildout faces possible delays: the company’s president warned that election-related opposition could make new data centers harder to build. Concerns about facilities’ power and water use could also invite tighter rules, raising execution and infrastructure risks. Article: Meta warns election backlash against data centers could make AI expansion harder
• Negative Sentiment: Reports on Meta’s euro bond sale point to higher borrowing costs than Alphabet faced, reinforcing investor concerns about how the company will fund its AI spending. Meta has also raised substantial debt in the U.S. for its expansion, adding to the focus on capital intensity and returns. Article: Meta Paid 1.4 Times What Alphabet Did to Borrow in Euros
• Negative Sentiment: Delhi Police filed a case concerning child sexual abuse material on Meta platforms following intervention by Indian authorities. The matter could add legal, reputational and compliance pressure. Article: Child Abuse Material On Meta Platforms Flagged, Delhi Police Files FIR

Meta Platforms Stock Performance

The company has a market cap of $1.55 trillion, a PE ratio of 20.63, a PEG ratio of 1.08 and a beta of 1.28. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.30. The company has a 50-day moving average of $673.61 and a 200-day moving average of $632.21.

Meta Platforms (NASDAQ:META - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The social networking company reported $7.40 EPS for the quarter, beating analysts' consensus estimates of $6.54 by $0.86. Meta Platforms had a return on equity of 30.73% and a net margin of 31.15%. The business had revenue of $64.60 billion during the quarter, compared to analyst estimates of $63.34 billion. During the same period in the prior year, the firm posted $7.25 EPS. Meta Platforms's quarterly revenue was up 26.1% compared to the same quarter last year. As a group, analysts anticipate that Meta Platforms, Inc. will post 29.01 earnings per share for the current year.

Meta Platforms Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were issued a $0.5250 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. Meta Platforms's dividend payout ratio is currently 7.16%.

Institutional Trading of Meta Platforms

Several institutional investors and hedge funds have recently made changes to their positions in the company. DSG Capital Advisors LLC raised its position in shares of Meta Platforms by 10.3% in the third quarter. DSG Capital Advisors LLC now owns 23,274 shares of the social networking company's stock valued at $16,878,000 after buying an additional 2,164 shares during the last quarter. Silver Grove Financial Group Inc. lifted its stake in shares of Meta Platforms by 1.3% during the third quarter. Silver Grove Financial Group Inc. now owns 2,686 shares of the social networking company's stock valued at $1,948,000 after buying an additional 34 shares during the period. Davis Investment Partners LLC boosted its position in Meta Platforms by 22.3% during the third quarter. Davis Investment Partners LLC now owns 526 shares of the social networking company's stock worth $382,000 after acquiring an additional 96 shares during the last quarter. Bahl & Gaynor LLC boosted its position in Meta Platforms by 9.4% during the third quarter. Bahl & Gaynor LLC now owns 175,233 shares of the social networking company's stock worth $127,075,000 after acquiring an additional 15,088 shares during the last quarter. Finally, Brooklyn FI LLC boosted its position in Meta Platforms by 305.5% during the third quarter. Brooklyn FI LLC now owns 4,136 shares of the social networking company's stock worth $2,999,000 after acquiring an additional 3,116 shares during the last quarter. Hedge funds and other institutional investors own 79.91% of the company's stock.

Meta Platforms Company Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company's principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.

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