Alley Investment Management Company LLC Purchases 1,774 Shares of Alphabet Inc. $GOOGL

Key Points

• Alley Investment Management increased its Alphabet stake by 1.6%, purchasing 1,774 shares to hold 114,653 shares valued at approximately $41 million. Alphabet represents about 4.8% of the firm’s portfolio, its largest position.
• Alphabet reported strong quarterly results, with $9.11 in earnings per share and $119.8 billion in revenue, exceeding analyst estimates. Analysts maintain a consensus “Buy” rating with an average price target of $420.19.
• Growth opportunities include Waymo’s planned autonomous taxi launch in Tokyo and expanding Google Cloud and AI monetization, while investors remain concerned about AI infrastructure spending, potential regulation, paused buybacks and pressure on free cash flow.

Alley Investment Management Company LLC increased its position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 1.6% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 114,653 shares of the information services provider's stock after purchasing an additional 1,774 shares during the period. Alphabet makes up approximately 4.8% of Alley Investment Management Company LLC's portfolio, making the stock its largest position. Alley Investment Management Company LLC's holdings in Alphabet were worth $40,974,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in the company. EMC Capital Management purchased a new position in Alphabet in the fourth quarter worth $33,000. Lifetime Wealth Management P.C. purchased a new position in shares of Alphabet in the 4th quarter valued at about $32,000. Bard Associates Inc. acquired a new stake in shares of Alphabet in the fourth quarter valued at about $52,000. Graney & King LLC lifted its stake in shares of Alphabet by 38.5% in the second quarter. Graney & King LLC now owns 180 shares of the information services provider's stock valued at $64,000 after purchasing an additional 50 shares during the period. Finally, Van Den Berg Management I Inc. boosted its holdings in Alphabet by 319.6% during the first quarter. Van Den Berg Management I Inc. now owns 214 shares of the information services provider's stock worth $61,000 after buying an additional 163 shares in the last quarter. Institutional investors and hedge funds own 40.03% of the company's stock.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s Waymo plans to launch a fully autonomous commercial taxi service in Tokyo in 2027 with Japanese partners, following its expansion into Las Vegas. The moves provide a potential long-term growth avenue beyond advertising and cloud computing. Waymo, Japanese partners target driverless taxi service in Tokyo in 2027
• Positive Sentiment: Analysts and market commentary continue to highlight Alphabet’s relatively inexpensive valuation, rapidly expanding Google Cloud backlog and potential for approximately 50% upside if cloud growth and AI monetization continue. A nuclear-power agreement with Fortum could also support the electricity needs of its energy-intensive data centers. Alphabet Has 50% Upside and the Cheapest Multiple of the Big Six
• Neutral Sentiment: OpenAI, Google DeepMind and Anthropic are discussing cooperation on AI safety and standards. Collaboration may reduce catastrophic-risk concerns and support clearer regulation, but it also underscores growing political scrutiny of frontier AI. OpenAI, Google, Anthropic discussing collaboration on AI safety issues
• Negative Sentiment: Proposed Senate legislation could give federal regulators authority to block or impose conditions on powerful AI models. Investors are concerned that such restrictions could delay product launches and affect the value of Alphabet’s large Cloud backlog. Senate’s Proposed AI Kill Switch Could Give Washington Veto Power Over Google’s Frontier Models
• Negative Sentiment: Investors are questioning the impact of heavy AI infrastructure spending on free cash flow. Reports that Alphabet has paused buybacks while its share count rises could reduce near-term shareholder returns and increase pressure on earnings conversion. What Happens To Alphabet Stock If Free Cash Flow Stays Negative?
• Negative Sentiment: Higher crude prices, elevated Treasury yields, expectations for another Federal Reserve rate increase and renewed uncertainty about AI demand pressured technology stocks broadly. Separate commentary also points to search-traffic headwinds and stronger digital-advertising growth at Reddit. Why is Alphabet stock falling today?

Alphabet Trading Down 1.3%

Shares of GOOGL opened at $344.98 on Wednesday. The stock has a fifty day moving average of $345.97 and a two-hundred day moving average of $344.38. Alphabet Inc. has a fifty-two week low of $235.84 and a fifty-two week high of $408.61. The company has a market capitalization of $4.22 trillion, a PE ratio of 17.33, a price-to-earnings-growth ratio of 1.01 and a beta of 1.22. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, beating the consensus estimate of $2.89 by $6.22. The company had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. As a group, analysts forecast that Alphabet Inc. will post 20.52 EPS for the current year.

Alphabet Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Monday, September 7th were given a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend was Friday, September 4th. Alphabet's dividend payout ratio (DPR) is 4.42%.

Insider Transactions at Alphabet

In other Alphabet news, Director Frances Arnold sold 112 shares of the company's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $351.28, for a total transaction of $39,343.36. Following the completion of the sale, the director directly owned 18,833 shares in the company, valued at $6,615,656.24. This represents a 0.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the firm's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $19.46, for a total value of $3,832,277.26. The SEC filing for this sale provides additional information. Insiders have sold a total of 450,875 shares of company stock worth $11,984,482 over the last ninety days. 11.61% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on GOOGL shares. Roth Capital restated a "buy" rating and set a $440.00 target price (up from $435.00) on shares of Alphabet in a research report on Thursday, July 23rd. Freedom Capital raised Alphabet from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. Morgan Stanley set a $400.00 price target on Alphabet and gave the company an "overweight" rating in a research report on Thursday, July 23rd. Piper Sandler reaffirmed an "overweight" rating and set a $395.00 price target (down from $445.00) on shares of Alphabet in a research note on Thursday, July 23rd. Finally, Wall Street Zen lowered shares of Alphabet from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Five equities research analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Alphabet currently has a consensus rating of "Buy" and a consensus target price of $420.19.

Alphabet Company Profile

Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.

Alphabet's largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.

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