1ST Source Bank Has $30.56 Million Position in Alphabet Inc. $GOOGL

Key Points

• 1ST Source Bank trimmed its Alphabet stake by 3.5% in the fourth quarter, but still held 97,646 shares valued at about $30.56 million. Alphabet remained its 12th-largest holding and made up roughly 1.6% of the portfolio.
• Alphabet is drawing mixed headlines around its AI spending: Berkshire Hathaway’s planned $10 billion investment signals confidence, while an $80 billion stock sale has raised dilution concerns and highlighted the high cost of its AI push.
• The company recently beat quarterly expectations with $5.11 EPS on $109.9 billion in revenue, and it also raised its dividend to $0.22 per share quarterly. Analysts remain mostly constructive, with a consensus rating of Moderate Buy.

1ST Source Bank decreased its holdings in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 3.5% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 97,646 shares of the information services provider's stock after selling 3,492 shares during the period. Alphabet comprises approximately 1.6% of 1ST Source Bank's investment portfolio, making the stock its 12th biggest holding. 1ST Source Bank's holdings in Alphabet were worth $30,563,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of GOOGL. Bedminster LLC purchased a new stake in shares of Alphabet during the 4th quarter worth approximately $260,000. WHI TRUST Co LLC bought a new position in Alphabet during the fourth quarter worth about $72,000. Donoghue Forlines LLC increased its stake in shares of Alphabet by 21.8% in the fourth quarter. Donoghue Forlines LLC now owns 11,144 shares of the information services provider's stock worth $3,488,000 after purchasing an additional 1,993 shares in the last quarter. AustralianSuper Pty Ltd grew its stake in Alphabet by 5.4% in the 4th quarter. AustralianSuper Pty Ltd now owns 3,100,737 shares of the information services provider's stock valued at $970,531,000 after buying an additional 160,019 shares in the last quarter. Finally, Legacy Financial Group LLC raised its holdings in Alphabet by 9.9% during the 4th quarter. Legacy Financial Group LLC now owns 1,011 shares of the information services provider's stock valued at $337,000 after acquiring an additional 91 shares during the period. Institutional investors own 40.03% of the company's stock.

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Berkshire Hathaway’s $10 billion investment signals strong outside confidence in Alphabet’s AI and cloud strategy. Alphabet plans to raise $80 billion for AI goals, Berkshire to invest $10 billion
• Positive Sentiment: Analysts and commentators continue to argue that Alphabet remains a high-margin cash generator with attractive long-term earnings power. Google: AI Skeptics Proven Wrong as Business Booms
• Neutral Sentiment: Coverage of Alphabet’s expanding AI coding, hardware, and device strategy highlights broader growth opportunities, but it is not the main driver of today’s move. Microsoft and Google are late to AI coding, but 'absolutely critical' they compete for growth
• Negative Sentiment: The proposed $80 billion stock sale raises dilution concerns and underscores how expensive Alphabet’s AI race has become. Exclusive: EU cloud rules to curb Amazon, Google access to strategic tenders, draft document shows
• Negative Sentiment: Reports that EU cloud rules could restrict Google’s access to strategic government tenders add a regulatory overhang for the cloud business. Alphabet to raise $80 billion in equity capital for AI spending

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on GOOGL shares. JPMorgan Chase & Co. reissued a "buy" rating on shares of Alphabet in a research note on Monday, May 4th. Guggenheim reaffirmed a "buy" rating and set a $450.00 target price (up from $375.00) on shares of Alphabet in a research note on Thursday, April 30th. Wolfe Research lowered their price target on Alphabet from $390.00 to $360.00 and set an "outperform" rating for the company in a research report on Friday, April 10th. Citizens Jmp reaffirmed a "market outperform" rating and issued a $515.00 price objective on shares of Alphabet in a research report on Wednesday, May 20th. Finally, Sanford C. Bernstein reissued a "market perform" rating and set a $390.00 price target (up from $345.00) on shares of Alphabet in a report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $413.04.

Insider Activity

In other Alphabet news, CAO Amie Thuener O'toole sold 617 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $289.63, for a total transaction of $178,701.71. Following the completion of the transaction, the chief accounting officer owned 10,093 shares of the company's stock, valued at $2,923,235.59. This trade represents a 5.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $23.75, for a total transaction of $2,077,531.25. The SEC filing for this sale provides additional information. Insiders sold a total of 193,016 shares of company stock valued at $17,282,549 in the last three months. Corporate insiders own 11.61% of the company's stock.

Alphabet Stock Down 3.9%

Shares of GOOGL opened at $361.85 on Wednesday. The stock has a market capitalization of $4.38 trillion, a price-to-earnings ratio of 27.60, a price-to-earnings-growth ratio of 1.61 and a beta of 1.23. Alphabet Inc. has a 1 year low of $162.00 and a 1 year high of $408.61. The business's 50 day simple moving average is $347.16 and its 200-day simple moving average is $325.75. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92.

Alphabet (NASDAQ:GOOGL - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share for the quarter, beating the consensus estimate of $2.64 by $2.47. Alphabet had a return on equity of 38.99% and a net margin of 37.92%.The firm had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.98 billion. As a group, equities analysts expect that Alphabet Inc. will post 14.29 earnings per share for the current fiscal year.

Alphabet Increases Dividend

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

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.

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