KeyCorp Lowers Meta Platforms (NASDAQ:META) Price Target to $710.00

KeyCorp Lowers Meta Platforms (NASDAQ:META) Price Target to $710.00

  • 20.03.2025 07:53
  • etfdailynews.com
  • Keywords: High Risk

KeyCorp reduced Meta Platforms' price target to $710 while maintaining an "overweight" rating. Despite this, other analysts raised their targets, with some upgrading ratings. The stock has a market cap of $1.48 trillion, strong earnings, but insiders have sold shares recently.

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Context

Analysis of Meta Platforms (NASDAQ:META) Price Target Adjustment and Market Implications

Price Target Adjustment

  • KeyCorp lowered its price target for Meta Platforms from $750.00 to $710.00, maintaining an "overweight" rating.
  • Potential upside from current price: 21.56%.

Analyst Consensus

  • Wells Fargo & Company raised their target price from $685.00 to $752.00 with an "overweight" rating.
  • Tigress Financial reiterated a "strong-buy" rating.
  • Citigroup increased their target price from $753.00 to $780.00 with a "buy" rating.
  • Arete Research upgraded the stock to a "hold" rating.
  • DA Davidson raised their price objective from $700.00 to $800.00 with a "buy" rating.

Stock Performance

  • Meta Platforms opened at $584.06 with a market capitalization of $1.48 trillion.
  • PE ratio: 24.42, PEG ratio: 1.42, beta: 1.23.
  • 50-day moving average: $656.27, 200-day moving average: $604.69.
  • Q4 EPS: $8.02 (beat expectations of $6.75).
  • Net margin: 37.91%, Return on Equity (ROE): 38.17%.
  • 12-month price range: $414.50 (low) to $740.91 (high).

Insider Activity

  • Total insider sales over last 90 days: 632,023 shares, worth $414,734,884.
  • CEO sold 10,100 shares, CFO Susan J. Li sold 8,553 shares.

Institutional Trading

  • Institutional ownership: 79.91%.
  • Recent institutional buying:
    • JDM Financial Group LLC: New stake valued at $30,000.
    • Safe Harbor Fiduciary LLC: New stake valued at $36,000.
    • Millstone Evans Group LLC: New stake valued at $40,000.
    • Avondale Wealth Management: New position valued at $41,000.
    • WealthTrak Capital Management: New position valued at $43,000.

Company Profile

  • Meta Platforms operates in two segments:
    1. Family of Apps: Includes Facebook, Instagram, Messenger, and WhatsApp.
    2. Reality Labs: Focuses on virtual reality technologies.
  • Aims to provide tools for global connection and sharing across platforms and devices.

Market Insights and Implications

  • Analyst Sentiment: Despite KeyCorp's price target reduction, other analysts have raised their targets, indicating mixed but generally positive sentiment.
  • Stock Valuation: The consensus target price of $718.31 suggests potential upside from the current price of $584.06.
  • Financial Health: Strong Q4 EPS and high net margin (37.91%) highlight Meta's profitability, though its beta (1.23) indicates moderate volatility risk.
  • Insider Activity: Significant insider selling may raise concerns about internal confidence, despite strong financial performance.
  • Institutional Buying: Recent institutional purchases suggest long-term investor confidence in Meta's growth potential.
  • Competitive Dynamics: Meta's dominance in social media and VR positions it as a key player in the tech sector, with opportunities for future innovation.

Long-Term Considerations

  • Market Position: Meta's extensive user base and diversified product portfolio provide a strong foundation for long-term growth.
  • Regulatory Risks: While not explicitly mentioned, ongoing regulatory scrutiny of tech giants could impact Meta's business model.
  • Strategic Focus: Continued investment in VR (Reality Labs) and AI could drive future revenue streams and maintain competitive advantage.

Conclusion

Meta Platforms' stock remains attractive to investors despite mixed analyst adjustments, with strong financial performance and institutional buying signaling confidence. However, insider selling and regulatory risks should be monitored for potential long-term impacts.