Morningstar Investment Boosts Stake in Meta Platforms, Driving Stock Growth.

Morningstar Investment Management LLC has increased its stake in Meta Platforms by 4,106 shares. The hedge fund, managed by Kunal Kapoor, has boosted its position in the company. Meta Platforms scores highly due to its strong financial performance, robust revenue growth, and profitability. However, operational challenges like increased expenses and bearish momentum are noted.

Meta Platforms Inc. (NASDAQ:META) continues to attract significant institutional interest as Morningstar Investment Management LLC, managed by Kunal Kapoor, has recently increased its stake in the social networking giant by 4,106 shares [1]. The move comes amidst a backdrop of strong financial performance and robust revenue growth for the company.

The latest disclosure from the Securities & Exchange Commission (SEC) shows that Morningstar's new position in Meta Platforms, valued at approximately $41,000, is part of a broader trend where hedge funds and institutional investors are actively adjusting their holdings in the company. This shift follows the company's latest quarterly earnings report, where Meta Platforms posted earnings per share (EPS) of $6.43, surpassing analyst expectations by $1.10 [2].

Despite the positive earnings, analysts have noted operational challenges such as increased expenses and a bearish market momentum. However, the company's strong fundamentals, including a return on equity of 38.17% and a net margin of 37.91%, continue to draw investors. Meta Platforms also recently increased its quarterly dividend, paying out $0.525 per share and setting a $2.10 annualized dividend [3].

Analysts have been mixed in their ratings for Meta Platforms. While some have downgraded their price targets, others have maintained a positive outlook. For instance, Cantor Fitzgerald raised its price objective from $624.00 to $676.00 and gave the company an "overweight" rating [4]. Conversely, Needham & Company LLC reissued an "underperform" rating on shares of Meta Platforms [5]. Overall, analysts have a consensus rating of "Moderate Buy" with an average price target of $696.45 [6].

In addition to Morningstar's increase, other hedge funds have also shown interest in Meta Platforms. Millstone Evans Group LLC, Avondale Wealth Management, WealthTrak Capital Management LLC, Marshall & Sterling Wealth Advisors Inc., and Cordant Inc. have all purchased new positions in the company during the fourth quarter [1].

Meta Platforms' stock has seen a slight decline in the past year, opening at $587.31 on Wednesday and reaching a one-year low of $442.65. Despite this, the company's market capitalization stands at $1.49 trillion, and its beta of 1.24 indicates a moderate level of risk relative to the broader market [2].

As Morningstar Investment Management LLC and other institutional investors continue to adjust their holdings, Meta Platforms remains a company of interest for investors, with its strong financial performance and operational challenges presenting a mixed but intriguing investment opportunity.

References:
[1] https://www.marketbeat.com/instant-alerts/dorsey-asset-management-llc-has-12193-million-stake-in-meta-platforms-inc-nasdaqmeta-2025-05-07/
[2] https://www.marketbeat.com/instant-alerts/meta-platforms-earnings-q1-2025-04-30/
[3] https://www.marketbeat.com/instant-alerts/meta-platforms-increases-dividend-2025-04-21/
[4] https://www.marketbeat.com/instant-alerts/cantor-fitzgerald-raises-price-objective-on-meta-platforms-2025-05-01/
[5] https://www.marketbeat.com/instant-alerts/needham-company-llc-reissues-underperform-rating-on-meta-platforms-2025-05-01/
[6] https://www.marketbeat.com/instant-alerts/analyst-upgrades-and-downgrades-on-meta-platforms-2025-05-01/