Meta Platforms, Inc. (NASDAQ:META) Sees Large Increase in Short Interest

Meta Platforms, Inc. (NASDAQ:META) saw a significant growth in short interest in the month of October. As of October 30th, there was short interest totaling 75,483,549 shares, a growth of 165.6% from the October 15th total of 28,417,942 shares. Based on an average trading volume of 27,812,646 shares, the days-to-cover ratio is currently 2.7 days. Approximately 3.4% of the shares of the company are short sold.

Meta Platforms News Roundup

These are some of the META news items that stood out recently:

• Neutral Sentiment: Meta’s longtime infrastructure chief Santosh Janardhan is set to leave in early 2027, with former AWS executive David Brown named as successor. The transition is distant, though it comes as Meta expands its AI infrastructure. Meta head of infrastructure will leave and be succeeded by former AWS cloud exec
• Negative Sentiment: Meta is among the companies sued by nonprofits over risks from advanced AI, adding potential legal and reputational uncertainty. Nonprofits sue OpenAI, Anthropic, Meta and Google over advanced AI risks
• Negative Sentiment: Meta was fined by a UK regulator over repeated inaccuracies in WhatsApp Business data, while Facebook was also reported fined by Brazil’s electoral court over campaign content. These actions add regulatory risk. Meta fined by UK regulator over WhatsApp Business data

Meta Platforms Trading Up 1.2%

Shares of META traded up $7.55 during mid-day trading on Friday, reaching $631.16. The stock had a trading volume of 5,290,281 shares, compared to its average volume of 18,044,641. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.90 and a quick ratio of 1.90. Meta Platforms has a 52-week low of $520.26 and a 52-week high of $779.82. The business’s fifty day moving average is $679.23 and its 200 day moving average is $631.88. The firm has a market cap of $1.61 trillion, a price-to-earnings ratio of 21.52, a P/E/G ratio of 1.09 and a beta of 1.28.

Meta Platforms (NASDAQ:META) last issued its quarterly earnings data on Thursday, October 22nd. The social networking company reported $7.40 earnings per share for the quarter, topping the consensus estimate of $6.54 by $0.86. The company had revenue of $64.60 billion during the quarter, compared to analyst estimates of $63.34 billion. Meta Platforms had a return on equity of 30.73% and a net margin of 31.15%. The firm’s revenue for the quarter was up 26.1% compared to the same quarter last year. During the same period in the prior year, the business posted $7.25 earnings per share. On average, sell-side analysts predict that Meta Platforms will post 29.01 EPS for the current fiscal year.

Meta Platforms Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were paid a $0.5250 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. Meta Platforms’s dividend payout ratio (DPR) is presently 7.16%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on META shares. TD Cowen decreased their price target on shares of Meta Platforms from $865.00 to $850.00 and set a “buy” rating on the stock in a research note on Thursday, October 22nd. Cantor Fitzgerald lifted their price objective on Meta Platforms from $840.00 to $860.00 and gave the stock an “overweight” rating in a report on Thursday, October 22nd. Morgan Stanley boosted their price objective on Meta Platforms from $775.00 to $820.00 and gave the stock an “overweight” rating in a research note on Monday, October 19th. Wedbush increased their target price on Meta Platforms from $700.00 to $730.00 and gave the company a “neutral” rating in a report on Thursday, October 22nd. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $800.00 target price (down from $850.00) on shares of Meta Platforms in a research report on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $833.12.

Insider Buying and Selling

In related news, COO Javier Olivan sold 946 shares of the stock in a transaction on Monday, November 9th. The shares were sold at an average price of $631.03, for a total transaction of $596,954.38. Following the sale, the chief operating officer directly owned 3,148 shares of the company’s stock, valued at approximately $1,986,482.44. This represents a 23.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 150,973 shares of company stock valued at $103,128,307. Corporate insiders own 13.42% of the company’s stock.

Hedge Funds Weigh In On Meta Platforms

Institutional investors have recently modified their holdings of the business. Horizons Wealth Management purchased a new stake in Meta Platforms during the 3rd quarter worth about $33,000. Advantage Trust Co purchased a new position in shares of Meta Platforms in the 2nd quarter valued at about $28,000. Prudent Man Investment Management Inc. boosted its stake in shares of Meta Platforms by 116.7% in the 3rd quarter. Prudent Man Investment Management Inc. now owns 52 shares of the social networking company’s stock valued at $38,000 after buying an additional 28 shares during the period. Philadelphia Investment Partners LLC acquired a new position in shares of Meta Platforms during the second quarter worth about $32,000. Finally, Axiom Investment Management LLC acquired a new position in shares of Meta Platforms during the first quarter worth about $36,000. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms Company Profile

Meta Platforms, Inc. is a global technology company that develops social networking, messaging, and digital communication products. Its services include Facebook, Instagram, WhatsApp, Messenger, and Threads, which connect people and help businesses reach audiences around the world. The company also develops virtual and augmented reality products and technologies through its Reality Labs division, including Quest headsets and related software and services. Advertising is a central part of Meta’s business, with its platforms providing tools for businesses to promote products and services.