Fundsmith 13F: Cuts Meta Platforms (META) Stake by $24M

Terry Smith's London-based investment firm, Fundsmith, trimmed its stake in Meta Platforms, Inc. (NASDAQ:META) by 3.09% during the first quarter. According to the firm's latest Form 13F filing with the Securities and Exchange Commission, the fund sold 42,164 shares of the social media and technology giant. Since 13F filings are backward-looking and reflect holdings as of March 31, 2026, they may not represent the investor's current positioning.

Fundsmith Refines Its High-Conviction Bet

Fundsmith is known for its highly concentrated, long-term approach to investing, focusing on high-quality companies that can compound value over time. In its latest portfolio adjustment, the fund trimmed its position to 1,321,375 shares, down from 1,363,539 shares. Despite this slight reduction, the position remains a major holding for the fund, valued at approximately $744.32 million at the end of the reporting period. Fundsmith originally established its position with a cost basis of $201.67 per share, indicating a substantial unrealized gain on the remaining shares.

Meta Stock Performance and Valuation

On Saturday, shares of Meta Platforms were priced at $563.29. The stock has experienced a wide range over the past year, trading between a 52-week low of $520.26 and a 52-week high of $779.82. Meta is trading below its 50-day moving average of $649.89 and its 200-day moving average of $631.37. The company's current valuation sits at a price-to-earnings (P/E) ratio of 27.76, while its forward P/E ratio is a more modest 21.32.

Recent Earnings and Financial Strength

Meta Platforms continues to generate powerful financial results, reporting revenue of $228.25 billion and revenue growth of 28% year-over-year. The company boasts a healthy net margin of 29.83% and a return on equity of 29.85%. Meta also maintains a strong balance sheet with a current ratio of 2.23 and a quick ratio of 1.99. Investors are looking forward to the company's next earnings report, which is scheduled for October 21, 2026.

Dividend Payments

Meta Platforms pays an annual dividend of $2.00 per share, which represents a dividend yield of 0.29% at current prices. The company maintains a conservative dividend payout ratio of 7.91%, leaving substantial capital available for its ongoing share repurchase program and research and development initiatives.

Board Members Add to Holdings

In recent insider activity, several members of Meta's board of directors acquired shares. On June 15, 2026, Nancy Killefer, Tony Xu, and Arnold John Douglas each acquired 612 shares. These transactions were completed at a price of $0.00, which typically represents equity grants or awards given to non-employee directors for their service on the board.

Wall Street Analysts Maintain Bullish Outlook

Wall Street analysts remain highly optimistic about Meta Platforms. On October 13, 2026, Truist Securities maintained its Buy rating and raised its price target from $763.00 to $1,000.00. On the same day, Pivotal Research maintained its Buy rating and lifted its price target to $930.00. Keybanc reiterated its Overweight rating with a $900.00 target, while Rosenblatt kept its Buy rating and $886.00 target. Out of 58 analysts covering the stock, the consensus recommendation is a "strong buy" with a mean price target of $813.65.

About Meta Platforms

Meta Platforms operates the world's largest social media network, connecting billions of people through Facebook, Instagram, Messenger, WhatsApp, and Threads. The company is also heavily invested in future computing platforms through its Reality Labs segment, which develops virtual reality headsets, augmented reality glasses, and artificial intelligence technology.

What's Ahead for Meta Platforms, Inc.

Investors will want to monitor whether other high-profile asset managers follow Fundsmith's lead in trimming their Meta holdings, or if they choose to buy the dip as the stock trades below its moving averages. The upcoming earnings release on October 21, 2026, will provide crucial updates on Meta's AI investments and advertising revenue growth.