Traders Buy Shares of Facebook (FB) on Weakness Following Analyst Downgrade

Investors bought shares of Facebook, Inc. (NASDAQ:FB) on weakness during trading on Monday after Credit Suisse Group lowered their price target on the stock from $225.00 to $210.00. $1,045.93 million flowed into the stock on the tick-up and $871.79 million flowed out of the stock on the tick-down, for a money net flow of $174.14 million into the stock. Of all companies tracked, Facebook had the 5th highest net in-flow for the day. Facebook traded down ($0.08) for the day and closed at $157.25

Other analysts have also recently issued reports about the stock. Raymond James cut shares of Facebook from a “strong-buy” rating to an “outperform” rating and set a $210.00 price target on the stock. in a research note on Thursday, July 26th. Royal Bank of Canada reissued a “buy” rating and set a $195.00 price target on shares of Facebook in a research note on Monday, September 3rd. Stifel Nicolaus reissued a “buy” rating and set a $202.00 price target on shares of Facebook in a research note on Thursday, August 23rd. JPMorgan Chase & Co. increased their price target on shares of Facebook from $195.00 to $205.00 and gave the company an “overweight” rating in a research note on Tuesday, September 18th. Finally, MKM Partners decreased their price target on shares of Facebook to $230.00 and set a “buy” rating on the stock in a research note on Thursday, August 2nd. Five investment analysts have rated the stock with a sell rating, six have assigned a hold rating, thirty-eight have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $205.68.

In other Facebook news, CFO David M. Wehner sold 9,522 shares of the stock in a transaction on Thursday, August 16th. The shares were sold at an average price of $180.20, for a total value of $1,715,864.40. Following the sale, the chief financial officer now directly owns 77,302 shares in the company, valued at $13,929,820.40. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Mark Zuckerberg sold 257,000 shares of the stock in a transaction on Wednesday, July 11th. The stock was sold at an average price of $203.33, for a total transaction of $52,255,810.00. The disclosure for this sale can be found here. Insiders sold 6,734,023 shares of company stock worth $1,280,747,059 over the last 90 days. 16.25% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of FB. Summit Trail Advisors LLC raised its holdings in Facebook by 4,170.3% in the first quarter. Summit Trail Advisors LLC now owns 9,070,939 shares of the social networking company’s stock worth $9,071,000 after purchasing an additional 8,858,520 shares during the period. Fundsmith Equity Fund L.P. acquired a new stake in Facebook in the second quarter worth $1,072,219,000. Cornerstone Wealth Management LLC raised its holdings in Facebook by 21,254.2% in the second quarter. Cornerstone Wealth Management LLC now owns 3,612,283 shares of the social networking company’s stock worth $18,303,000 after purchasing an additional 3,595,367 shares during the period. BlackRock Inc. raised its holdings in Facebook by 2.0% in the first quarter. BlackRock Inc. now owns 149,137,226 shares of the social networking company’s stock worth $23,830,637,000 after purchasing an additional 2,966,437 shares during the period. Finally, SG Americas Securities LLC raised its holdings in Facebook by 1,559.1% in the first quarter. SG Americas Securities LLC now owns 2,990,310 shares of the social networking company’s stock worth $477,822,000 after purchasing an additional 2,810,076 shares during the period. Institutional investors own 60.43% of the company’s stock.

The firm has a market capitalization of $477.76 billion, a price-to-earnings ratio of 25.49, a price-to-earnings-growth ratio of 1.05 and a beta of 0.42.

Facebook (NASDAQ:FB) last issued its quarterly earnings data on Wednesday, July 25th. The social networking company reported $1.74 EPS for the quarter, missing analysts’ consensus estimates of $1.75 by ($0.01). Facebook had a return on equity of 28.16% and a net margin of 39.31%. The company had revenue of $13.23 billion for the quarter, compared to analyst estimates of $13.35 billion. During the same quarter in the previous year, the business earned $1.32 earnings per share. The company’s revenue was up 41.9% on a year-over-year basis. As a group, equities research analysts expect that Facebook, Inc. will post 7.08 earnings per share for the current fiscal year.

About Facebook (NASDAQ:FB)

Facebook, Inc provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices; and WhatsApp, a mobile messaging application.

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