Meta Platforms (NASDAQ:META) Stock Price Down 3.4% – Here’s Why

Meta Platforms, Inc. (NASDAQ:META) shares were down 3.4% during mid-day trading on Thursday . The stock traded as low as $597.22 and last traded at $606.10. 15,424,040 shares were traded during mid-day trading, a decline of 8% from the average session volume of 16,782,785 shares. The stock had previously closed at $627.17.

More Meta Platforms News

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

• Positive Sentiment: A new free verification badge system for Facebook users, which may improve trust and platform quality. Fast Company article
• Positive Sentiment: A dedicated Marketplace seller app with tools for merchants, aimed at making Facebook commerce more useful and organized. Reuters article
• Positive Sentiment: Wall Street commentary remained constructive, with articles highlighting Meta as a strong momentum stock and a potentially attractive AI-era value name.
• Positive Sentiment: Analyst sentiment stayed favorable, including a report that Wells Fargo raised its price target on Meta to $835.00.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Piper Sandler started coverage on shares of Meta Platforms in a research note on Tuesday, June 2nd. They issued an “overweight” rating for the company. Wedbush initiated coverage on shares of Meta Platforms in a research note on Thursday, July 16th. They set a “neutral” rating and a $671.00 price target on the stock. Sanford C. Bernstein cut their price target on shares of Meta Platforms from $900.00 to $850.00 and set an “outperform” rating for the company in a report on Thursday, April 30th. Truist Financial reduced their price objective on shares of Meta Platforms from $900.00 to $840.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Finally, Arete Research set a $735.00 target price on Meta Platforms and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $835.64.

Meta Platforms Price Performance

The company has a debt-to-equity ratio of 0.24, a current ratio of 2.35 and a quick ratio of 2.35. The company’s 50 day moving average is $604.51 and its 200 day moving average is $625.76. The stock has a market cap of $1.51 trillion, a price-to-earnings ratio of 21.64, a PEG ratio of 1.02 and a beta of 1.25.

Meta Platforms (NASDAQ:META) last released its quarterly earnings data on Wednesday, April 29th. The social networking company reported $10.44 EPS for the quarter, topping analysts’ consensus estimates of $6.67 by $3.77. Meta Platforms had a net margin of 32.84% and a return on equity of 36.93%. The firm had revenue of $56.31 billion for the quarter, compared to the consensus estimate of $55.56 billion. During the same quarter in the previous year, the firm earned $6.43 earnings per share. The firm’s revenue was up 33.1% on a year-over-year basis. Research analysts forecast that Meta Platforms, Inc. will post 29.49 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Monday, June 15th were paid a dividend of $0.525 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 annualized dividend and a dividend yield of 0.4%. Meta Platforms’s payout ratio is 7.63%.

Insider Buying and Selling

In related news, Director Robert M. Kimmitt sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $607.75, for a total value of $303,875.00. Following the completion of the transaction, the director directly owned 3,443 shares of the company’s stock, valued at $2,092,483.25. This trade represents a 12.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis J. Mahoney sold 2,079 shares of Meta Platforms stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $609.92, for a total value of $1,268,023.68. Following the transaction, the insider directly owned 1,118 shares of the company’s stock, valued at approximately $681,890.56. This represents a 65.03% decrease in their ownership of the stock. 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 a total of 37,948 shares of company stock worth $23,184,319 in the last quarter. Company insiders own 13.53% of the company’s stock.

Institutional Investors Weigh In On Meta Platforms

Institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC increased its stake in shares of Meta Platforms by 1.7% during the 4th quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock worth $20,230,000 after purchasing an additional 570 shares in the last quarter. Revolve Wealth Partners LLC increased its position in 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 raised its holdings in shares of Meta Platforms by 294.7% in the first quarter. Headwater Capital Co Ltd now owns 150,000 shares of the social networking company’s stock worth $86,454,000 after acquiring an additional 112,000 shares during the last quarter. Dymon Asia Capital Singapore PTE. LTD. acquired a new position in shares of Meta Platforms in the second quarter worth $213,000. Finally, Capital & Planning LLC purchased a new stake in shares of Meta Platforms in the second quarter valued at $322,000. 79.91% of the stock is currently owned by hedge funds and other institutional investors.

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.