On September 26, 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 more detail.
Jennifer Newstead is a seasoned legal professional with a wealth of experience in both the public and private sectors. As Chief Legal Officer at Meta Platforms Inc, she is responsible for managing the company's legal affairs and advising on legal issues that impact the company's operations and strategy. Her role is crucial in navigating the complex legal landscape that surrounds the tech industry.
Meta Platforms Inc, formerly known as Facebook 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 other brands. 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 25,624 shares and purchased 0 shares. This recent sale of 670 shares is part of this larger trend.
The insider transaction history for Meta Platforms Inc shows that there have been 0 insider buys and 76 insider sells over the past year. This trend suggests that insiders at the company are more inclined to sell their shares than to buy more.
On the day of the insider's recent sale, shares of Meta Platforms Inc were trading for $297.66 apiece, giving the stock a market cap of $782.14 billion. The price-earnings ratio is 35.43, which is higher than the industry median of 20.97 and higher than the company’s historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical average.
However, with a price of $297.66 and a GuruFocus Value of $337.41, Meta Platforms Inc has a price-to-GF-Value ratio of 0.88. This means the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account historical multiples, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sale and the broader trend of insider selling at Meta Platforms Inc may raise some concerns, the stock's current valuation suggests that it may still offer value to investors. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
