On August 17, 2023, Javier Olivan, the Chief Operating Officer (COO) of Meta Platforms Inc (META, Financial), sold 4,277 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 58,850 shares and made no purchases.
Meta Platforms Inc, formerly known as Facebook Inc, is a social media conglomerate that owns and operates several popular platforms including Facebook, Instagram, WhatsApp, and Oculus VR. The company's primary revenue source is advertising, which is delivered to its massive user base across its various platforms.
The insider's recent sell comes at a time when the stock is trading at $293 per share, giving the company a market cap of $728.85 billion. The price-earnings ratio stands at 33.01, higher than the industry median of 19.77 but lower than the company's historical median price-earnings ratio.
According to GuruFocus Value, the stock is modestly undervalued with a price-to-GF-Value ratio of 0.89. The GF Value is an intrinsic value estimate that takes into account historical multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
Over the past year, the insider transaction history for Meta Platforms Inc shows zero insider buys and 76 insider sells. This could indicate that insiders believe the stock is overvalued at current prices. However, it's important to note that insider selling can occur for various reasons and may not necessarily reflect a negative outlook on the company's future performance.
In conclusion, the recent sell by the insider, Javier Olivan, is part of a larger trend of insider selling at Meta Platforms Inc. While the stock appears to be modestly undervalued according to the GF Value, the high level of insider selling could be a cause for concern for potential investors. As always, it's crucial to consider all factors and conduct thorough research before making investment decisions.
