Insider Selling: Meta Platforms (NASDAQ:META) Director Sells 580 Shares of Stock
Meta Platforms director Robert Kimmitt recently trimmed his stake in the social giant, selling 580 shares in a transaction dated Tuesday, February 17. The shares changed hands at an average price of $639.18, yielding proceeds of approximately $370,724. Post-sale, Kimmitt holds 5,007 shares, valued around $3.20 million at the transaction price, marking roughly a 10.4% reduction in his position. The move was detailed in a regulatory disclosure.
Market Snapshot
Meta’s stock ticked up $1.56 to close at $644.78 in Thursday trading, with about 10.0 million shares exchanged versus a typical volume near 16.6 million. Over the past year, shares have ranged between $479.80 and $796.25. The company’s market capitalization stands near $1.63 trillion.
Key valuation and balance sheet metrics include a price-to-earnings ratio of 27.44, a price/earnings-to-growth ratio of 1.09, and a beta of 1.28. Liquidity remains strong with both current and quick ratios at 2.60, while debt-to-equity sits at 0.27. The 50‑day simple moving average is $656.60, compared with a 200‑day average of $691.28.
Quarterly Performance
In its most recent earnings update on Wednesday, January 28, Meta reported earnings per share of $8.88, outpacing the $8.16 consensus. Net margin landed at 30.08%, and return on equity reached 38.61%—signs of durable profitability and efficiency. Revenue for the quarter came in at $59.89 billion, topping expectations of $58.33 billion and rising 23.8% year over year. In the same period a year earlier, EPS was $8.02. Wall Street currently models full‑year EPS around 26.7.
Dividend Details
Meta announced a quarterly dividend of $0.525 per share, scheduled for payment on Thursday, March 26, to shareholders of record as of Monday, March 16. On an annualized basis, that’s $2.10 per share, implying a yield near 0.3%. The ex-dividend date is March 16, and the payout ratio is approximately 8.94%.
What’s Shaping the Narrative
- AI buildout accelerates: Meta has deepened its collaboration with Nvidia, committing to a multi‑year roadmap that includes millions of GPUs alongside future Rubin/Vera CPUs, networking, and co‑design efforts—aimed at speeding AI infrastructure deployment.
- Institutional momentum: Prominent hedge funds and long‑only managers have added to positions on the AI thesis, while several research firms lifted price targets, reinforcing bullish sentiment.
- Product shifts: Reports point to a revived Meta smartwatch effort targeting 2026 and the wind‑down of Messenger’s standalone website—strategic for ecosystem cohesion but modest near‑term revenue impact.
- Legal overhang: CEO Mark Zuckerberg is testifying in a high‑profile youth‑addiction case related to Instagram’s impact on teens, introducing regulatory and reputational risk that could affect engagement and ad demand.
- Insider activity: Beyond Kimmitt’s sale, recent filings indicate additional executive stock sales, a potential source of short‑term supply as leadership diversifies holdings.
- Capex watch: Coverage highlights a substantial 2026 capital expenditure plan—estimated around $115–$135 billion—for AI data centers. If monetization trails spend, margins could face pressure.
Analyst Check-In
Recent updates include the following:
- Monness Crespi & Hardt raised its target to $890 with a Buy rating.
- TD Cowen reiterated Buy.
- Deutsche Bank lifted its target to $920 and maintained Buy.
- Raymond James adjusted its target to $800 and kept a Strong Buy stance.
- Wall Street Zen shifted its view from Buy to Hold.
Across the broader analyst community, the stock carries a consensus rating of Moderate Buy, with 3 Strong Buys, 39 Buys, and 7 Holds, and an average target price around $844.29.
Institutional Moves
- Bay Colony Advisors increased its stake by 0.4% in Q2 to 3,506 shares after adding 13 shares.
- Trust Co of the South lifted holdings by 0.8% in Q3 to 1,850 shares with a 14‑share add.
- Sentinel Pension Advisors raised its position by 1.6% in Q3 to 915 shares after purchasing 14 additional shares.
- Alpine Bank Wealth Management edged up 0.3% in Q3 to 4,301 shares, adding 14 shares.
- Valued Wealth Advisors grew its stake by 3.2% in Q3 to 454 shares, up 14 shares.
Institutional investors and hedge funds collectively own about 79.91% of the float.
Meta at a Glance (With an Eye on VR/Gaming)
Meta Platforms, formerly Facebook, is a Menlo Park–based tech heavyweight building consumer platforms at global scale. Its family of apps—Facebook, Instagram, WhatsApp, and Messenger—anchors digital social interaction, content creation, and advertising. Alongside AI investments, Meta is doubling down on immersive computing via augmented and virtual reality, including XR hardware and software that underpin its metaverse ambitions.
For gamers and VR enthusiasts, Meta’s continued push in AR/VR—paired with its vast social graph and creator tools—remains pivotal. The company’s heavy AI and data center spend aims to enhance recommendation engines, generative content, and real‑time 3D experiences that could define the next era of social gaming and virtual worlds.
