On September 12, 2023, Jennifer Newstead, Chief Legal Officer of Meta Platforms Inc (META, Financial), sold 670 shares of the company. This move is part of a broader trend of insider selling at Meta Platforms Inc, which we will explore in this article.
Jennifer Newstead is a seasoned legal professional with a wealth of experience in both the public and private sectors. She joined Meta Platforms Inc, formerly known as Facebook Inc, in 2019 as the Chief Legal Officer. In her role, she oversees the company's global legal functions and is instrumental in navigating the complex legal challenges the tech giant faces.
Meta Platforms Inc is a global technology company that builds products to connect people and businesses. The company's primary product is Facebook, but it also owns Instagram, WhatsApp, and Oculus, among others. Meta Platforms Inc's mission is to give people the power to build community and bring the world closer together.
Over the past year, Jennifer Newstead has sold a total of 24,968 shares and purchased 0 shares. This recent sale of 670 shares was executed at a price of $306.34 per share, amounting to a total transaction value of $205,247.80.
The insider transaction history for Meta Platforms Inc shows a clear trend of insider selling. Over the past year, there have been 76 insider sells and 0 insider buys. This could be an indication of the insiders' sentiment about the company's future prospects.
The stock was trading at $306.34 per share on the day of the insider's recent sale, giving the company a market cap of $802.11 billion. The price-earnings ratio is 36.33, which is higher than the industry median of 21.28 and the company’s historical median price-earnings ratio. This suggests that the stock is currently overvalued compared to its peers and its own historical standards.
However, the GuruFocus Value of $335.07 suggests that the stock is fairly valued. The price-to-GF-Value ratio of 0.91 supports this assessment. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, the insider's recent sale, along with the trend of insider selling at Meta Platforms Inc, could be a signal for investors to exercise caution. While the stock appears to be fairly valued according to the GF Value, the high price-earnings ratio compared to the industry median and the company's historical median suggests that the stock might be overvalued. Investors should consider these factors and conduct further research before making investment decisions.
