Erste Group Bank Increases Earnings Estimates for Alphabet

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Alphabet to $14.88 from $14.74, while analysts maintain a consensus “Buy” rating and an average price target of $419.86.
• Alphabet reported a substantial quarterly earnings beat, with EPS of $9.11 versus the $2.89 consensus estimate and revenue of $119.80 billion, ahead of expectations.
• Alphabet declared a quarterly dividend of $0.22 per share, equivalent to $0.88 annually and a 0.2% yield; insiders sold more than 600,000 shares during the latest quarter.

Alphabet Inc. (NASDAQ:GOOGL - Free Report) - Erste Group Bank boosted their FY2027 earnings estimates for shares of Alphabet in a report released on Wednesday, August 5th. Erste Group Bank analyst H. Engel now expects that the information services provider will post earnings per share of $14.88 for the year, up from their prior estimate of $14.74. The consensus estimate for Alphabet's current full-year earnings is $20.51 per share.

A number of other equities analysts also recently weighed in on the company. Truist Financial set a $420.00 target price on Alphabet and gave the company a "buy" rating in a report on Thursday, July 23rd. Loop Capital boosted their price objective on shares of Alphabet from $355.00 to $490.00 and gave the company a "buy" rating in a research report on Friday, May 15th. BNP Paribas Exane upped their price objective on shares of Alphabet from $390.00 to $420.00 and gave the company an "outperform" rating in a research note on Thursday, April 30th. The Goldman Sachs Group increased their target price on shares of Alphabet from $400.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Finally, DA Davidson set a $350.00 target price on shares of Alphabet and gave the company a "neutral" rating in a research note on Thursday, July 23rd. Six equities research analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $419.86.

Alphabet Stock Performance

Shares of NASDAQ GOOGL opened at $354.30 on Monday. The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16. Alphabet has a one year low of $196.60 and a one year high of $408.61. The business has a 50-day moving average price of $355.68 and a two-hundred day moving average price of $340.49. The firm has a market capitalization of $4.33 trillion, a PE ratio of 17.80, a PEG ratio of 0.99 and a beta of 1.24.

Alphabet (NASDAQ:GOOGL - Get Free Report) last released its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $6.22. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The company had revenue of $119.80 billion during the quarter, compared to analyst estimates of $117.07 billion.

Alphabet Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be paid a $0.22 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a yield of 0.2%. Alphabet's dividend payout ratio (DPR) is presently 4.42%.

Insider Buying and Selling

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $19.46, for a total transaction of $3,832,277.26. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider John Kent Walker sold 8,998 shares of the company's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $349.29, for a total transaction of $3,142,911.42. Following the sale, the insider owned 75,290 shares of the company's stock, valued at $26,298,044.10. This trade represents a 10.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 600,547 shares of company stock worth $16,255,540 in the last quarter. 11.61% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alphabet

Several large investors have recently made changes to their positions in the business. Oxbow Advisors LLC grew its holdings in Alphabet by 0.7% in the 2nd quarter. Oxbow Advisors LLC now owns 6,498 shares of the information services provider's stock valued at $2,322,000 after buying an additional 47 shares during the last quarter. Wealthfront Advisers LLC increased its position in Alphabet by 3.3% in the 2nd quarter. Wealthfront Advisers LLC now owns 874,716 shares of the information services provider's stock worth $312,597,000 after buying an additional 28,048 shares during the period. Global Strategic Investment Solutions LLC lifted its holdings in shares of Alphabet by 6.9% during the second quarter. Global Strategic Investment Solutions LLC now owns 7,961 shares of the information services provider's stock worth $2,845,000 after buying an additional 514 shares during the last quarter. Foster & Motley Inc. lifted its holdings in shares of Alphabet by 1.3% during the second quarter. Foster & Motley Inc. now owns 10,841 shares of the information services provider's stock worth $3,874,000 after buying an additional 137 shares during the last quarter. Finally, Cypress Asset Management Inc. TX boosted its position in shares of Alphabet by 1.3% in the second quarter. Cypress Asset Management Inc. TX now owns 7,742 shares of the information services provider's stock valued at $2,767,000 after acquiring an additional 100 shares during the period. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud revenue reportedly increased 82% in the second quarter, with backlog reaching $514 billion, while the Gemini app reached approximately 950 million monthly active users. The results reinforce the commercial demand supporting Alphabet’s AI and cloud investments. Google's AI business is booming, so why are DeepMind's biggest names quitting?
• Positive Sentiment: Analysts and investors continue to highlight Alphabet’s strong cash generation, balance sheet and valuation relative to its growth prospects. Some market models see the shares reaching $400 as Cloud momentum and AI monetization continue. Price Prediction: Google Will Hit $400 on This Date
• Positive Sentiment: Alphabet’s expanded Google Cloud partnership with AI lab Mirendil, reportedly worth more than $100 million over multiple years, provides another example of demand for its computing infrastructure. Mirendil Google Cloud deal

About Alphabet

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google’s core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google’s consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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