Sowell Financial Services LLC has reduced its stake in Meta Platforms, Inc. by 13.4% during the third quarter of 2023. According to the company’s latest 13F filing with the Securities and Exchange Commission, Sowell Financial now holds 28,870 shares of the social media giant after selling 4,457 shares during the period. This adjustment makes Meta approximately 0.8% of Sowell’s investment portfolio, positioning it as the firm’s 16th largest investment. The total value of Sowell’s holdings in Meta was reported at $21,201,000 as of the end of the reporting period.
Other institutional investors have also adjusted their positions in Meta. For instance, Bare Financial Services Inc acquired a new stake valued at around $30,000 in the second quarter. Evergreen Private Wealth LLC increased its stake by 237.5%, bringing its total to 54 shares valued at $40,000 after purchasing an additional 38 shares. Additionally, Briaud Financial Planning Inc and Knuff & Co LLC both acquired new stakes worth $42,000 and $44,000, respectively. Notably, WFA Asset Management Corp expanded its position by 42.6%, owning 67 shares valued at $49,000. Currently, hedge funds and institutional investors hold 79.91% of Meta’s stock.
Analysts Adjust Target Prices for Meta
Several financial analysts have recently updated their ratings and target prices for Meta shares. On October 30, 2023, Bank of America lowered its target price from $900.00 to $810.00, maintaining a “buy” rating for the stock. Similarly, Jefferies Financial Group decreased its price objective from $950.00 to $910.00, also assigning a “buy” rating. In a parallel move, Wells Fargo & Company reduced its target from $837.00 to $802.00 while keeping an “overweight” rating. Needham & Company LLC reaffirmed a “hold” rating, while Benchmark shifted its rating from “buy” to “hold.”
Currently, four analysts have rated Meta with a “Strong Buy,” while thirty-nine have issued “Buy” ratings and seven have suggested a “Hold” rating. According to MarketBeat, Meta Platforms holds a consensus rating of “Moderate Buy” with an average target price of $820.22.
Recent Developments Impacting Meta
Recent news related to Meta Platforms has garnered both positive and negative sentiments. Investors reacted positively to Meta’s acquisition of AI agent startup Manus for approximately $2 billion. Analysts view this move as a potential revenue enhancer and a step towards monetizing AI-driven technologies. Furthermore, Wall Street remains largely optimistic, with various brokers reiterating buy ratings, bolstered by the belief that AI investments will yield long-term benefits.
Conversely, Meta faces regulatory challenges, as the U.S. Virgin Islands has filed a lawsuit claiming the company profited from scam advertisements and failed to protect children. This legal action poses potential risks to Meta’s reputation and could lead to further regulatory scrutiny. Additionally, a recent investigation by Reuters suggested that Meta may have developed a strategy to mislead regulators regarding the handling of fraudulent advertisements, amplifying concerns about regulatory pressure.
The company has also experienced insider selling, with Susan J. Li, Chief Financial Officer, selling 6,875 shares at an average price of $609.46, totaling over $4.19 million. Similarly, Javier Oliván, Chief Operating Officer, sold 2,610 shares for approximately $1.59 million. These transactions have led to negative headlines, despite being relatively small in relation to overall insider holdings.
Meta’s Financial Performance
On October 29, 2023, Meta Platforms reported its quarterly earnings, revealing $7.25 earnings per share (EPS), surpassing analysts’ expectations of $6.74 by $0.51. The company recorded revenue of $51.24 billion, compared to the anticipated $49.34 billion. With a net margin of 30.89% and a return on equity of 39.35%, Meta’s revenue increased by 26.2% year-over-year, showcasing strong financial performance.
The company also announced a quarterly dividend of $0.525 share, which was paid on December 23, 2023. Shareholders of record on December 15, 2023 received this dividend, reflecting an annualized dividend of $2.10 and a yield of 0.3%.
Meta Platforms, Inc. continues to navigate a dynamic landscape, balancing opportunities in AI and regulatory challenges while maintaining a strong financial position. As the company evolves, investors and analysts will be closely monitoring its strategies and market performance.
