Meta Platforms (NASDAQ: META) has received a significant boost, with Morgan Stanley raising its price target from $750.00 to $850.00. This adjustment, reported on Thursday morning, reflects the brokerage’s current “overweight” rating on the social media giant’s stock. The upward revision is part of a broader trend among analysts, indicating strong confidence in the company’s future performance.
In addition to Morgan Stanley’s report, several other financial institutions have recently adjusted their price targets for Meta. Bank of America increased its target from $690.00 to $765.00 and assigned a “buy” rating on July 10, 2023. Similarly, Cantor Fitzgerald raised its price objective from $807.00 to $828.00 with an “overweight” rating on July 16, 2023. Truist Financial also increased its target from $700.00 to $720.00 on May 1, 2023, while Loop Capital set a new target of $888.00 on May 16, 2023. Lastly, JPMorgan Chase & Co. revised its price target from $735.00 to $795.00 on July 11, 2023.
Overall, the levels of optimism are reflected in the ratings from analysts: four have rated the stock as “hold,” thirty-nine have issued a “buy” rating, and three have assigned a “strong buy” rating. According to data from MarketBeat.com, the consensus rating for Meta Platforms stands at “Moderate Buy,” with an average target price of $820.32.
Financial Performance Highlights
Meta Platforms most recently reported its earnings on July 30, 2023. The company announced earnings per share of $7.14 for the quarter, significantly surpassing analysts’ expectations of $5.75 by $1.39. Revenue for the quarter reached $47.52 billion, exceeding the consensus estimate of $44.55 billion. This marks a 21.6% increase in revenue year-over-year, compared to the same period last year when earnings per share were reported at $5.16.
Meta’s impressive financial metrics include a return on equity of 39.33% and a net margin of 39.99%. Analysts project a total earnings per share of 26.7 for the current fiscal year.
Dividend and Insider Activity
On June 26, 2023, Meta Platforms declared a quarterly dividend of $0.525 per share, which was distributed to shareholders of record on June 16, 2023. This dividend represents an annualized amount of $2.10 and reflects a dividend yield of 0.3%. Currently, the company’s payout ratio stands at 8.19%.
Recent insider trading activity includes a sale by Jennifer Newstead, an insider at Meta, who sold 519 shares on July 29, 2023, at an average price of $719.86, totaling approximately $373,607.34. Following this transaction, Newstead holds 25,550 shares valued at about $18,392,423, indicating a 1.99% decrease in their ownership.
Another notable transaction involved Director Robert M. Kimmitt, who sold 465 shares on July 15, 2023, at an average price of $723.08, resulting in a total value of approximately $336,232.20. After this sale, Kimmitt directly owns 9,342 shares valued at around $6,755,013.36, marking a decrease of 4.74% in his position.
In the past three months, insiders sold a total of 152,980 shares valued at approximately $105,708,832. Corporate insiders currently own 13.61% of Meta’s stock.
Institutional Investment Trends
Institutional investors have also been active in adjusting their positions in Meta Platforms. Valley Financial Group Inc. increased its stake by 2.4% in the fourth quarter, now owning 588 shares valued at approximately $344,000. Lantern Wealth Advisors LLC raised its position by 0.5%, bringing its total to 2,976 shares valued at about $1,743,000.
Pachira Investments Inc. boosted its holdings by 3.0% during the second quarter, now owning 488 shares valued at approximately $360,000. Hemington Wealth Management increased its stake by 0.6%, owning 2,223 shares valued at around $1,641,000. Riverwater Partners LLC also grew its position by 2.7%, now holding 572 shares worth about $335,000.
Overall, institutional investors now hold 79.91% of the company’s stock, indicating strong confidence in Meta Platforms’ future prospects.
Meta Platforms, Inc. focuses on developing products that facilitate communication and sharing among users worldwide through various platforms, including Facebook, Instagram, Messenger, and WhatsApp. The company operates primarily in two segments: Family of Apps and Reality Labs, which encompass a range of services designed to enhance user connectivity and engagement.
