Alphabet (NASDAQ:GOOG) Sets New 1-Year High - Here's Why

Key Points

• Alphabet Inc. shares reached a new 52-week high of $240.59, closing at $239.94, marking an increase from the previous close of $234.16.
• The company's quarterly earnings report indicated $2.31 earnings per share, surpassing analysts' estimates of $2.12, with revenue of $96.43 billion.
• Alphabet announced a quarterly dividend of $0.21 per share, to be paid on September 15th, representing an annualized yield of 0.4%.

Alphabet Inc. (NASDAQ:GOOG - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $240.59 and last traded at $239.94, with a volume of 22727434 shares. The stock had previously closed at $234.16.

Wall Street Analyst Weigh In

GOOG has been the topic of a number of recent research reports. Lake Street Capital reissued a "buy" rating on shares of Alphabet in a report on Wednesday, July 9th. Cowen reissued a "buy" rating on shares of Alphabet in a report on Wednesday, July 9th. Barclays reissued a "buy" rating on shares of Alphabet in a report on Wednesday, July 9th. BNP Paribas cut Alphabet from a "strong-buy" rating to a "hold" rating in a research report on Thursday, June 26th. Finally, Roth Capital restated a "buy" rating on shares of Alphabet in a research report on Wednesday, July 9th. Four analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $227.56.

Alphabet Stock Up 2.5%

The stock has a 50-day simple moving average of $199.04 and a two-hundred day simple moving average of $177.55. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.07. The firm has a market cap of $2.90 trillion, a PE ratio of 25.55, a P/E/G ratio of 1.58 and a beta of 1.01.

Alphabet (NASDAQ:GOOG - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The information services provider reported $2.31 earnings per share for the quarter, beating analysts' consensus estimates of $2.12 by $0.19. Alphabet had a return on equity of 34.31% and a net margin of 31.12%.The business had revenue of $96.43 billion for the quarter, compared to the consensus estimate of $93.67 billion. During the same quarter last year, the business posted $1.89 earnings per share. The company's revenue for the quarter was up 13.8% on a year-over-year basis. Analysts expect that Alphabet Inc. will post 8.89 earnings per share for the current year.

Alphabet Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Monday, September 8th will be given a dividend of $0.21 per share. The ex-dividend date is Monday, September 8th. This represents a $0.84 dividend on an annualized basis and a yield of 0.4%. Alphabet's dividend payout ratio (DPR) is presently 8.95%.

Insider Transactions at Alphabet

In other Alphabet news, CEO Sundar Pichai sold 32,500 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $229.73, for a total transaction of $7,466,225.00. Following the sale, the chief executive officer owned 2,429,892 shares in the company, valued at $558,219,089.16. This trade represents a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider John Kent Walker sold 23,820 shares of the firm's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $194.70, for a total value of $4,637,754.00. Following the sale, the insider owned 42,999 shares in the company, valued at $8,371,905.30. The trade was a 35.65% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 254,710 shares of company stock worth $49,208,380. Company insiders own 12.99% of the company's stock.

Institutional Trading of Alphabet

Institutional investors have recently added to or reduced their stakes in the business. IFS Advisors LLC boosted its position in Alphabet by 400.0% during the second quarter. IFS Advisors LLC now owns 150 shares of the information services provider's stock valued at $27,000 after buying an additional 120 shares during the period. Robbins Farley increased its position in shares of Alphabet by 60.0% in the second quarter. Robbins Farley now owns 160 shares of the information services provider's stock valued at $28,000 after acquiring an additional 60 shares during the period. Principia Wealth Advisory LLC increased its position in shares of Alphabet by 111.8% in the first quarter. Principia Wealth Advisory LLC now owns 161 shares of the information services provider's stock valued at $26,000 after acquiring an additional 85 shares during the period. WestEnd Advisors LLC increased its position in shares of Alphabet by 58.7% in the second quarter. WestEnd Advisors LLC now owns 165 shares of the information services provider's stock valued at $29,000 after acquiring an additional 61 shares during the period. Finally, MorganRosel Wealth Management LLC purchased a new position in shares of Alphabet in the first quarter valued at about $26,000. 27.26% of the stock is currently owned by hedge funds and other institutional investors.

About Alphabet

Alphabet Inc offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

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