Facebook Inc (FB) Shares Hit Multi-Month Low On China Worries

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While there has been a lack of any major news coming from the company, shares of Facebook Inc (NASDAQ:FB) are getting pummelled in mid-afternoon trading today. While the stock started the day in the red, it wasn’t until around 1 p.m. ET that the bottom seemed to drop out. The stock plunged to new lows not seen since mid-October as worries related to the Chinese market and economy seem to have spread to U.S. markets as well.

While shares of Facebook Inc (NASDAQ:FB) are well off of their 52-week low of $72.00, there could still be room for losses if investors begin to sense that the company’s PE ratio of 98 may be too high. With that said, the company continues to see tremendous growth, both overseas and within North America, and has been quite efficient in squeezing out as much advertising revenue as they can from their mobile and desktop traffic.

The stock is down 4.75% or $4.89 following the news, hitting $98.08 per share. About 30.40M shares traded hands or 49.09% up from the average. FB has risen 24.90% since June 3, 2015 and is uptrending. It has outperformed the S&P500 by 29.59%.

From a total of 33 analysts covering Facebook (NASDAQ:FB) stock, 32 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 97% of the ratings are positive. The highest target price is $155.0 while the lowest target price is $88. The mean of all analyst targets is $122.65 which is 25.05% above today’s ($98.08) stock price. Facebook was the topic of 58 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on November 6 with a “Buy” rating. Morgan Stanley maintained shares with a”Overweight” rating and a $120 target share price in their report from a November 5. Canaccord Genuity maintained FB stock in a recent report from November 5 with a “Buy” rating. Credit Suisse maintained the rating on November 5. Credit Suisse has a “Outperform” rating and a $135 price target on shares. Finally, Jefferies maintained the stock with a “Buy” rating in a report they issued on a November 5.

The institutional sentiment increased to 1.73 in Q2 2015. It’s up 0.01, from 1.72 in 2015Q2. The ratio increased, as 69 funds sold all their Facebook Inc shares they owned while 375 reduced their positions. 126 funds bought stakes while 643 increased their total positions. Institutions now own 1.55 billion shares which is 2.48% more than the previous share count of 1.51 billion in 2015Q2.

Millennium Tvp Management Co. Llc holds 52.76% of its total portfolio in Facebook Inc, equating to 639,552 shares. Parametric Risk Advisors Llc owns 7.97 million shares representing 46.51% of their total US portfolio. Moreover, Sc Us (Ttgp) Ltd. has 41.15% of their total portfolio invested in the company, equating to 1.04 million shares. The California-based Meritech Capital Associates Iii L.L.C. has a total of 37.81% of their portfolio invested in the stock. Duquesne Family Office Llc, a New York-based fund reported 4.09 million shares owned.

Since February 25, 2015, the stock had 0 insider buys, and 47 selling transactions for a total of $193.63 million in net activity. Athwal Jas sold 30,000 shares worth $3.06 million. Stretch Colin sold 1,000 shares worth $98,710. Cox Christopher K sold 5,778 shares worth $561,622. Schroepfer Michael Todd sold 31,283 shares worth $3.00M. The insider Fischer David B. sold 15,000 shares worth $1.43 million.

Facebook, Inc. is a social networking company. The company has a market cap of $284.05 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 98.53 P/E ratio. It offers various services focused on people, marketers and developers.

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