Facebook Inc (FB) Shares Fall Off – What is the cause of today’s stock decline?


Shares of Facebook Inc (NASDAQ:FB) stock are trading down today quite significantly. This has many investors wondering what the cause of today’s dropoff could be. With no notable news, it appears as though this move is simply a leveling off of the recent stock price surge that came after the company reported fourth quarter earnings. The stock jumped approximately 10% on news of better than anticipated earnings numbers, and was up 19% in just 5 days at one point. Today, however, things have fallen back in place a bit.

More than likely this move is simply investors taking their gains, with these “gain-takers” out-numbering those who still feel as though shares of Facebook Inc (NASDAQ:FB) are a good buy. Additionally investors are becoming a bit worried about the FANG stocks (Facebook, Amazon, Netflix and Google), especially after less than spectacular earnings from Netflix on January 19.

The stock is down 3.43% or $3.93 following the news, hitting $110.68 per share. About 37.52M shares traded hands or 6.86% up from the average. FB has risen 33.58% since June 29, 2015 and is uptrending. It has outperformed the S&P500 by 41.09%.

From a total of 34 analysts covering Facebook (NASDAQ:FB) stock, 33 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 $170 while the lowest target price is $88. The mean of all analyst targets is $125.06 which is 12.99% above today’s ($110.68) stock price. Facebook was the topic of 66 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Piper Jaffray maintained shares on January 28 with a “Overweight” rating. Suntrust Robinson maintained shares with a”Buy” rating and a $120 target share price in their report from a January 25. Stifel Nicolaus maintained FB stock in a recent report from January 28 with a “Buy” rating. Morgan Stanley maintained the rating on November 5. Morgan Stanley has a “Overweight” rating and a $120 price target on shares. Finally, FBR Capital maintained the stock with a “Outperform” rating in a report they issued on a January 28.

The institutional sentiment increased to 1.73 in Q2 2015. It’s up 0.01, from 1.72 in 2015Q2. The ratio is positive, 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 purchases, and 34 sales for a total of $157.58 million in net activity. Athwal Jas sold 30,000 shares worth $3.06M. 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 $3.00 million. 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 $321.99 billion. The Firm is engaged in developing products that enables users to connect and share through mobile devices and personal computers. It has 85.8 P/E ratio. It offers various services focused on people, marketers and developers.