Alphabet (NASDAQ:GOOG) Reaches New 1-Year High - Still a Buy?

Key Points

• Alphabet shares hit a new 52-week high during intraday trading, reaching as high as $399.42 as investors continued to bid up the stock amid strong momentum.
• The company’s latest quarterly results were solid, with EPS of $5.11 beating estimates and revenue of $109.9 billion topping forecasts, while revenue rose 21.8% year over year.
• Analysts remain largely constructive on Alphabet thanks to its AI and cloud growth story, though some commentary notes the stock’s valuation is getting richer after its recent run-up.

Alphabet Inc. (NASDAQ:GOOG - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $399.42 and last traded at $399.6390, with a volume of 10319875 shares traded. The stock had previously closed at $383.82.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google is expanding its AI strategy beyond chat, signaling new product experiences that could deepen user engagement and support long-term monetization. Google Breaks AI Out of the Chat Window
• Positive Sentiment: Reports that Google is exploring orbital data centers with SpaceX have added to optimism around Alphabet’s AI and cloud growth story. SpaceX, Google in Talks to Explore Data Centers in Orbit
• Positive Sentiment: Several institutional filings showed funds increasing exposure to Alphabet, reinforcing demand for the stock from large investors. Capital World Investors Just Disclosed New Holdings
• Positive Sentiment: Alphabet’s strong earnings, cloud growth, and AI positioning continue to attract bullish analyst and investor commentary. Alphabet: The A-Z AI Play Set To Profit From The Whole Industry
• Neutral Sentiment: Some recent fund disclosures also showed major investors trimming Alphabet exposure, though the moves appear more like portfolio rebalancing than a fundamental shift in the business. Capital International Investors Just Disclosed New Holdings
• Neutral Sentiment: Broader market commentary says Alphabet remains one of the strongest AI-linked names, but also notes that valuations are becoming richer after a major run-up. Big Growth. 'Undemanding' Prices.

Analyst Ratings Changes

Several brokerages have recently commented on GOOG. Piper Sandler reaffirmed an "overweight" rating and set a $395.00 price objective on shares of Alphabet in a research note on Thursday, February 5th. KeyCorp set a $370.00 price target on Alphabet in a report on Thursday, February 5th. Freedom Capital lowered Alphabet from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 4th. JPMorgan Chase & Co. increased their price objective on Alphabet from $395.00 to $460.00 and gave the stock an "overweight" rating in a report on Thursday, April 30th. Finally, Cantor Fitzgerald reiterated a "neutral" rating on shares of Alphabet in a research report on Tuesday, January 20th. Six equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $362.73.

Alphabet Stock Performance

The company's 50-day moving average price is $321.91 and its 200 day moving average price is $314.45. The stock has a market capitalization of $4.84 trillion, a PE ratio of 30.44, a PEG ratio of 1.58 and a beta of 1.25. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.92 and a current ratio of 1.92.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The information services provider reported $5.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $2.43. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The company had revenue of $109.90 billion for the quarter, compared to analysts' expectations of $106.96 billion. During the same quarter in the previous year, the company earned $2.81 earnings per share. Alphabet's quarterly revenue was up 21.8% on a year-over-year basis. On average, equities research analysts expect that Alphabet Inc. will post 14.29 earnings per share for the current fiscal year.

Alphabet Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 8th will be issued a dividend of $0.22 per share. This is a positive change from Alphabet's previous quarterly dividend of $0.21. The ex-dividend date is Monday, June 8th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.2%. Alphabet's dividend payout ratio (DPR) is currently 6.41%.

Insider Transactions at Alphabet

In related news, insider John Kent Walker sold 47,574 shares of the company's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $301.45, for a total value of $14,341,182.30. Following the sale, the insider directly owned 13,227 shares of the company's stock, valued at $3,987,279.15. This represents a 78.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Amie Thuener O'toole sold 955 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $298.00, for a total value of $284,590.00. Following the completion of the transaction, the chief accounting officer owned 9,918 shares of the company's stock, valued at approximately $2,955,564. This trade represents a 8.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 158,553 shares of company stock worth $47,951,856 over the last 90 days. 12.99% of the stock is currently owned by insiders.

Institutional Trading of Alphabet

A number of hedge funds and other institutional investors have recently modified their holdings of GOOG. Tradewinds LLC. raised its stake in Alphabet by 2,134.8% during the 3rd quarter. Tradewinds LLC. now owns 45,098 shares of the information services provider's stock valued at $10,984,000 after buying an additional 43,080 shares during the last quarter. Kathmere Capital Management LLC boosted its stake in shares of Alphabet by 8.5% in the 4th quarter. Kathmere Capital Management LLC now owns 29,896 shares of the information services provider's stock worth $9,381,000 after buying an additional 2,341 shares during the last quarter. Atlantic Union Bankshares Corp boosted its stake in shares of Alphabet by 31.3% in the 3rd quarter. Atlantic Union Bankshares Corp now owns 354,529 shares of the information services provider's stock worth $86,345,000 after buying an additional 84,553 shares during the last quarter. Baltimore Washington Financial Advisors Inc. grew its holdings in shares of Alphabet by 0.9% in the third quarter. Baltimore Washington Financial Advisors Inc. now owns 221,391 shares of the information services provider's stock worth $53,920,000 after acquiring an additional 2,009 shares during the period. Finally, Newbridge Financial Services Group Inc. grew its holdings in shares of Alphabet by 7.5% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 60,739 shares of the information services provider's stock worth $19,060,000 after acquiring an additional 4,239 shares during the period. 27.26% of the stock is owned by hedge funds and other institutional investors.

About Alphabet

Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.

Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.

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