Facebook Inc. (FB) Lowered to “Hold” at Zacks Investment Research
According to Zacks, “Facebook's increasing revenues from mobile and video ads are its biggest growth drivers. We continue to believe that going forward growth will be driven by its huge user and advertisers’ base, higher engagement levels along with monetization opportunities presented by its subsidiaries Instagram, Oculus, Messenger and WhatsApp.While Messenger recently crossed the 1 billion user milestone, joining the likes of Facebook and WhatsApp, Instagram now has over 500 million MAUs. However, Facebook warned that revenue growth rates will now start to face tougher comparison. Ad load, which so far has been a leading factor driving revenue growth, will now start to “grow modestly” in the coming quarters and won’t be a big factor after mid-2017. Costs will continue to rise as the company ramps investments. “
Several other analysts have also recently issued reports on FB. Cowen and Company reaffirmed a buy rating and set a $145.00 price objective on shares of Facebook in a research note on Sunday, July 17th. MKM Partners reaffirmed a buy rating on shares of Facebook in a research note on Sunday, July 24th. Deutsche Bank AG reaffirmed a buy rating on shares of Facebook in a research note on Sunday, July 10th. Vetr raised shares of Facebook from a hold rating to a buy rating and set a $127.69 price objective for the company in a research note on Wednesday, August 3rd. Finally, JPMorgan Chase & Co. set a $170.00 price objective on shares of Facebook and gave the company a buy rating in a research note on Thursday, July 28th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating, forty-four have given a buy rating and two have given a strong buy rating to the company’s stock. The stock presently has an average rating of Buy and a consensus target price of $149.79.
Facebook (NASDAQ:FB) opened at 128.27 on Tuesday. The stock’s 50 day moving average is $126.92 and its 200-day moving average is $119.10. The stock has a market capitalization of $368.35 billion, a price-to-earnings ratio of 61.31 and a beta of 0.77. Facebook has a 12 month low of $89.37 and a 12 month high of $131.98.
Facebook (NASDAQ:FB) last announced its quarterly earnings data on Wednesday, July 27th. The social networking company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.15. Facebook had a net margin of 27.07% and a return on equity of 14.38%. The company earned $6.44 billion during the quarter, compared to analysts’ expectations of $6 billion. During the same quarter in the prior year, the company earned $0.50 EPS. Facebook’s revenue was up 59.2% compared to the same quarter last year. On average, equities research analysts expect that Facebook will post $3.94 earnings per share for the current year.
In other Facebook news, CAO Jas Athwal sold 4,923 shares of the company’s stock in a transaction dated Monday, August 15th. The shares were sold at an average price of $124.07, for a total value of $610,796.61. Following the completion of the sale, the chief accounting officer now directly owns 125,394 shares of the company’s stock, valued at approximately $15,557,633.58. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jan Koum sold 1,721,436 shares of the company’s stock in a transaction dated Tuesday, July 12th. The shares were sold at an average price of $118.13, for a total transaction of $203,353,234.68. The disclosure for this sale can be found here. 19.08% of the stock is currently owned by corporate insiders.
A number of large investors have recently modified their holdings of FB. Carnick & Kubik Group LLC acquired a new stake in shares of Facebook during the second quarter worth $1,902,000. Williams Jones & Associates LLC increased its stake in shares of Facebook by 3.3% in the second quarter. Williams Jones & Associates LLC now owns 635,392 shares of the social networking company’s stock worth $72,613,000 after buying an additional 20,128 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in shares of Facebook during the second quarter worth $10,668,000. Kentucky Retirement Systems acquired a new stake in shares of Facebook during the second quarter worth $22,467,000. Finally, KAMES CAPITAL plc increased its stake in shares of Facebook by 2.3% in the second quarter. KAMES CAPITAL plc now owns 1,321,024 shares of the social networking company’s stock worth $150,967,000 after buying an additional 29,407 shares during the last quarter. 56.61% of the stock is owned by institutional investors.
Facebook Company Profile
Facebook, Inc builds products that enable people to connect and share through mobile devices and personal computers. The Company enables people to share their opinions, ideas, photos and videos, and other activities. Its products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook is a mobile application and Website that enables people to connect, share, discover and communicate with each other on mobile devices and personal computers.
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