Meta Platforms (NASDAQ:META) Trading Up 4.7% – Time to Buy?

Meta Platforms, Inc. (NASDAQ:META) shares traded up 4.7% on Monday . The stock traded as high as $601.27 and last traded at $593.48. 17,354,726 shares traded hands during trading, an increase of 7% from the average session volume of 16,254,764 shares. The stock had previously closed at $566.98.

Meta Platforms News Summary

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

• Positive Sentiment: Meta launched new “AI Mode” features on Facebook that use public information across its platforms to help users search, create content, and interact more deeply with the app, reinforcing its AI strategy and engagement potential. Meta’s new ‘AI Mode’ on Facebook pulls from public info across its platforms
• Positive Sentiment: Call traders were active after Meta’s AI-fueled move, suggesting options market participants are betting the new product push could keep the stock moving higher in the near term. Call Traders Cheer Meta Platforms Stock’s AI-Fueled Pop
• Positive Sentiment: Some commentary highlighted Meta’s chip ambitions as a possible underappreciated AI catalyst, with investors viewing in-house silicon as a way to lower future AI costs and improve margins. Move Over, NVIDIA. Meta’s Chip Ambitions May Yet to Be Priced Into the Stock
• Neutral Sentiment: Meta also completed an operational split from Manus and stopped data sharing as it works to unwind a $2 billion deal, a move that reduces strategic complexity but does not appear to be a major immediate stock driver. Meta Completes Operational Split from Manus amid Unwinding of $2 Billion Deal, Bloomberg Reports
• Negative Sentiment: Separately, a report described turmoil inside Meta’s AI unit, with employees facing heavy workloads and disorganization; that could raise concerns about execution risks even as Meta spends aggressively on AI. Toxic mix of chaos and drudgery turns Meta’s AI unit into a real-world hell: ‘Soul-crushing’

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Benchmark assumed coverage on shares of Meta Platforms in a research note on Tuesday, June 2nd. They set a “buy” rating for the company. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $725.00 price target (down from $825.00) on shares of Meta Platforms in a research note on Thursday, April 30th. Bank of America decreased their price target on shares of Meta Platforms from $885.00 to $820.00 and set a “buy” rating for the company in a research note on Monday, April 20th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $810.00 price target on shares of Meta Platforms in a research note on Monday, June 1st. Finally, Raymond James Financial raised shares of Meta Platforms from an “underperform” rating to an “outperform” rating in a research note on Tuesday, June 2nd. Three investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Meta Platforms currently has a consensus rating of “Moderate Buy” and an average target price of $840.60.

Meta Platforms Stock Up 4.7%

The firm’s 50 day moving average is $621.15 and its two-hundred day moving average is $636.05. The firm has a market capitalization of $1.50 trillion, a P/E ratio of 21.57, a PEG ratio of 1.00 and a beta of 1.23. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.35 and a quick ratio of 2.35.

Meta Platforms (NASDAQ:META) last announced its quarterly earnings results on Wednesday, April 29th. The social networking company reported $10.44 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to the consensus estimate of $55.56 billion. During the same quarter last year, the firm posted $6.43 EPS. The company’s quarterly revenue was up 33.1% on a year-over-year basis. Research analysts predict that Meta Platforms, Inc. will post 29.35 EPS for the current year.

Meta Platforms Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.525 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.10 annualized dividend and a yield of 0.4%. Meta Platforms’s dividend payout ratio (DPR) is currently 7.63%.

Insider Buying and Selling at Meta Platforms

In other Meta Platforms news, CTO Andrew Bosworth sold 7,847 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $607.83, for a total transaction of $4,769,642.01. Following the completion of the sale, the chief technology officer 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, CFO Susan J. Li sold 9,195 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $607.84, for a total value of $5,589,088.80. Following the sale, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at $8,014,978.24. This represents a 41.08% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 39,170 shares of company stock worth $24,218,565. 13.53% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Meta Platforms

Several hedge funds have recently added to or reduced their stakes in META. Brighton Jones LLC lifted its holdings in shares of Meta Platforms by 1.7% during the fourth quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock worth $20,230,000 after buying an additional 570 shares in the last quarter. Revolve Wealth Partners LLC lifted its holdings in shares of Meta Platforms by 10.2% during the fourth quarter. Revolve Wealth Partners LLC now owns 9,456 shares of the social networking company’s stock worth $5,537,000 after buying an additional 875 shares in the last quarter. Headwater Capital Co Ltd lifted its holdings in shares of Meta Platforms by 294.7% during the first quarter. Headwater Capital Co Ltd now owns 150,000 shares of the social networking company’s stock worth $86,454,000 after buying an additional 112,000 shares in the last quarter. Dymon Asia Capital Singapore PTE. LTD. acquired a new stake in shares of Meta Platforms during the second quarter worth $213,000. Finally, Capital & Planning LLC acquired a new stake in shares of Meta Platforms during the second quarter worth $322,000. 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.