CoreCap Advisors LLC has raised its position in Meta Platforms, Inc. (NASDAQ:META) by an impressive 20.3% during the third quarter of 2023, as indicated by its recent 13F filing with the Securities and Exchange Commission. The investment firm now holds 14,829 shares of the social networking giant, valued at approximately $10,891,000 following the acquisition of an additional 2,504 shares during this period.
This move is part of a broader trend among institutional investors, with various hedge funds adjusting their stakes in Meta Platforms. For instance, Bay Colony Advisory Group Inc increased its holdings by 0.4% in the second quarter, bringing its total to 3,506 shares valued at $2,587,000. Similarly, Pachira Investments Inc. raised its position by 3.0%, now owning 488 shares worth $360,000 after acquiring an additional 14 shares.
Other firms, including Hemington Wealth Management and Trust Co of the South, also reported increases in their holdings, showcasing a strong institutional interest in Meta Platforms. Currently, 79.91% of Meta’s stock is owned by institutional investors.
Analysts React to Meta’s Stock Performance
Recent evaluations from equity research analysts reflect a mixed sentiment regarding Meta’s stock. The Goldman Sachs Group reaffirmed a “buy” rating on October 14, while Zacks Research downgraded the stock from a “strong-buy” to a “hold” on November 18. Morgan Stanley lowered its price target from $820.00 to $750.00 but maintained an “overweight” rating. In contrast, Wall Street Zen reduced its rating from “buy” to “hold” on November 1.
Currently, the consensus rating is classified as a “Moderate Buy”, with an average target price of $822.96, based on data from MarketBeat.com.
Recent Developments at Meta
Several key developments have influenced sentiment towards Meta Platforms recently. Notably, TD Cowen raised its price target for META to $820, suggesting potential valuation upside following a recent pullback. Additionally, Meta is reportedly in discussions with EssilorLuxottica to double production capacity for Ray-Ban smart glasses from 10 million to 20 million units, indicating robust demand for AI wearables and potential new revenue streams.
In a strategic move to bolster its AI initiatives, Meta appointed Dina Powell McCormick as president and vice chair. This decision is viewed positively by investors as it aims to enhance Meta’s execution capabilities in AI and infrastructure development.
On the other hand, the company has faced challenges. Reports indicate that Meta plans to cut approximately 10-15% of its Reality Labs workforce, amounting to between 1,000 and 1,500 jobs, as it pivots from virtual reality projects to a greater focus on AI wearables. This restructuring highlights previous capital inefficiencies and may impose short-term costs that could affect investor sentiment.
Furthermore, there are ongoing concerns regarding Meta’s substantial capital expenditures and execution risks, particularly as it continues to invest heavily in its compute and data center infrastructure. Criticism from high-profile investors, including Michael Burry, has added to the pressure on the company’s stock. Regulatory issues, including antitrust actions in Brazil and account removal policies in Australia, also pose risks that could affect Meta’s market performance.
Meta Platforms opened at $631.09 on Wednesday, with a market capitalization of $1.59 trillion and a P/E ratio of 27.88. The company reported earnings of $7.25 per share for the quarter ending October 29, exceeding analysts’ expectations of $6.74 by $0.51. The revenue for the quarter reached $51.24 billion, surpassing estimates of $49.34 billion and reflecting a 26.2% increase compared to the same period last year.
In addition to its financial performance, Meta recently declared a quarterly dividend of $0.525, which was paid on December 23. This represents an annualized dividend yield of 0.3% and indicates a payout ratio of 9.28%.
Insider trading activity also reflects ongoing confidence in the company. Recently, Jennifer Newstead, an insider, sold 519 shares for a total of $341,860.11, while Robert M. Kimmitt sold 580 shares for about $374,680.00. Despite these transactions, insiders collectively own 13.61% of Meta’s stock.
Founded in 2004 and headquartered in Menlo Park, California, Meta Platforms, Inc., formerly known as Facebook, Inc., is a leading technology company that develops social networking services and immersive computing platforms. The company rebranded in October 2021 to reflect its strategic focus on augmented and virtual reality technologies alongside its established social media offerings.
