Meta Platforms Inc. (META): What Does Valuation Ratios Tell Us?

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Meta Platforms Inc. (NASDAQ:META) saw an upside of 2.80% to close Monday at $143.27 after adding $3.9 on the day. The 5-day average trading volume is 25,228,619 shares of the company’s common stock. It has gained $143.76 in the past week and touched a new high 5 times within the past 5 days. An average of 25,270,369 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 33,309,637.

META’s 1-month performance is 22.36% or $25.23 on its low of $115.51 reached on 12/28/22. The company’s shares have touched a 52-week low of $88.09 and high of $328.00, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, META has achieved 19.05% or $22.93 and has reached a new high 9 times. However, the current price is down -56.32% from the 52-week high price.

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Insider Transactions

META stock investors last saw insider trading activity on Jan 18.Newstead Jennifer (Chief Legal Officer) most recently sold 342 shares at $135.71 per share on Jan 18. This transaction cost the insider $46,413. Chief Legal Officer, Newstead Jennifer, sold 342 shares at a price of $131.03 on Jan 11. Then, on Jan 04, Chief Legal Officer Newstead Jennifer sold 342 shares at a price of $127.40 per share. This transaction amounted to $43,571.

Valuation Metrics

META stock has a beta of 1.18. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.11 while the price-to-book (PB) in the most recent quarter is 3.10, with the price to cash flow ratio at 13.95.

Meta Platforms Inc.’s quick ratio for the period ended September 29 was 2.60, with the current ratio over the same period at 2.60. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.08, while the total debt to equity was 0.08. In terms of profitability, the gross margin trailing 12 months is 80.30%. The firm’s gross profit as reported stood at $95.28 billion against revenue of $117.93 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Meta Platforms Inc.’s cash and short-term investments amounted to $27.47 billion against total debt of $26.48 billion. Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -109.19% to $4.39 billion, while revenue of $6.69 billion was -52.15% off the previous quarter. Analysts expected META to announce $1.89 per share in earnings in its latest quarter, but it posted $1.64, representing a -13.20% surprise. EBITDA for the quarter stood at more than $7.84 billion. META stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 54.8 billion, with total debt at $26.48 billion. Shareholders hold equity totaling $2.65 billion.

Let’s look briefly at Meta Platforms Inc. (META) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 78.59% to suggest the stock is trending Overbought, with historical volatility in this time period at 25.81%.

The stock’s 5-day moving average is $137.43, reflecting a +4.59% or $6.29 change from its current price. META is currently trading +19.63% above its 20-day SMA, -9.99% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +48.51% and SMA200 by-38.20%.

Stochastic %K and %D was 96.06% and 91.02% and the average true range (ATR) pointed at 4.53. The RSI (14) points at 72.89%, while the 14-day stochastic is at 97.72% with the period’s ATR at 4.57. The stock’s 9-day MACD Oscillator is pointing at 3.29 and 6.36 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Meta Platforms Inc. (NASDAQ: META), New Street launched coverage with a Buy rating. Analysts offering their rating for META stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate META as a “sell,”, while 18 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 6 rates the stock as overweight while 31 have offered a “buy” rating.

What is META’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $80.00 and a high of $220.00, with their median price target at $150.00. Looking at these predictions, the average price target given by analysts is for Meta Platforms Inc. (META) stock is $145.60.

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