CoreCap Advisors LLC has increased its position in Meta Platforms, Inc. (NASDAQ:META) by 20.3% during the third quarter of 2023, as disclosed in its recent 13F filing with the Securities and Exchange Commission. The investment firm now holds 14,829 shares of the social networking giant, which were valued at approximately $10,891,000 at the end of the reporting period. This acquisition included an additional 2,504 shares purchased during the quarter.
Several other institutional investors have also adjusted their holdings in Meta Platforms. For instance, Bay Colony Advisory Group Inc., operating as Bay Colony Advisors, raised its stake by 0.4% during the second quarter, now owning 3,506 shares valued at about $2,587,000 after acquiring an additional 13 shares. Similarly, Pachira Investments Inc. increased its position by 3.0%, bringing its total to 488 shares with a value of $360,000. Other firms, including Hemington Wealth Management and Sentinel Pension Advisors LLC, have also made minor adjustments to their stakes in the company.
Currently, institutional investors own approximately 79.91% of Meta Platforms’ stock, indicating strong confidence in the company’s future prospects.
Analyst Ratings and Market Sentiment
In light of recent market activity, analysts have provided varied ratings on Meta Platforms. The Goldman Sachs Group reaffirmed a “buy” rating on the stock in a research note dated October 14, 2023. In contrast, Zacks Research downgraded its rating from “strong-buy” to “hold” on November 18, 2023. Morgan Stanley adjusted its price target from $820.00 to $750.00 while maintaining an “overweight” rating as of December 11, 2023.
Overall, analysts have shown a generally positive outlook, with four providing a “Strong Buy” rating, thirty-nine a “Buy” rating, and seven a “Hold” rating. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $822.96.
Recent news has also contributed to a positive sentiment surrounding Meta Platforms. Notably, TD Cowen raised its price target to $820, suggesting a favorable near-term valuation. Additionally, discussions between Meta and EssilorLuxottica regarding a significant increase in production capacity for Ray-Ban smart glasses have been reported, indicating strong commercial demand for these products.
Financial Performance and Investor Activity
Meta Platforms reported its latest quarterly earnings on October 29, 2023, showing impressive results. The company reported earnings per share of $7.25, exceeding analyst estimates of $6.74 by $0.51. Revenue for the quarter reached $51.24 billion, significantly surpassing the expected $49.34 billion. This performance marks a 26.2% increase in revenue compared to the same quarter in the previous year.
In addition to strong earnings, the company declared a quarterly dividend of $0.525, which was paid on December 23, 2023. This dividend, which represents an annualized yield of 0.3%, reflects a dividend payout ratio of 9.28%.
Insider trading activity has also been noteworthy. On December 30, 2023, insider Jennifer Newstead sold 519 shares at an average price of $658.69, totaling about $341,860.11. Following this transaction, she retains 28,658 shares valued at approximately $18,876,738.02. Additionally, Robert M. Kimmitt, a director, sold 580 shares on December 15, 2023, for about $374,680.00.
As of now, insiders collectively own approximately 13.61% of the company’s stock, suggesting a strong alignment of interests between management and shareholders.
Meta Platforms, Inc., founded in 2004 and headquartered in Menlo Park, California, operates a suite of popular social media products, including Facebook, Instagram, WhatsApp, and Messenger. The company rebranded as Meta in October 2021 to reflect its strategic focus on augmented and virtual reality technologies as well as social media. The ongoing developments in its product lines and market strategies indicate a robust trajectory for the company as it navigates a rapidly evolving tech landscape.
