Ally Financial Inc. Trims Stake in Alphabet Inc. $GOOG

Key Points

• Ally Financial cut its Alphabet stake by 67.2% in the second quarter, selling 44,000 shares and retaining 21,500 shares worth approximately $7.6 million. Alphabet represented 1% of Ally’s portfolio.
• Wall Street remains broadly bullish, with a consensus “Buy” rating and an average price target of $415.55, despite some analysts lowering or adjusting their targets.
• Alphabet’s latest quarter showed strong momentum, with revenue rising 24.2% year over year to $119.8 billion and earnings significantly beating estimates; however, regulatory scrutiny and the rising cost of AI investments remain key risks.

Ally Financial Inc. reduced its stake in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) by 67.2% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 21,500 shares of the information services provider's stock after selling 44,000 shares during the period. Alphabet accounts for 1.0% of Ally Financial Inc.'s portfolio, making the stock its 20th biggest holding. Ally Financial Inc.'s holdings in Alphabet were worth $7,597,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Imprint Wealth LLC purchased a new position in shares of Alphabet during the third quarter valued at about $31,000. Nvest Wealth Strategies Inc. bought a new stake in Alphabet in the fourth quarter worth $38,000. Lifetime Wealth Management P.C. purchased a new position in shares of Alphabet during the 4th quarter worth about $38,000. Bard Associates Inc. purchased a new stake in shares of Alphabet in the fourth quarter worth approximately $41,000. Finally, Commonwealth Retirement Investments LLC purchased a new stake in Alphabet in the fourth quarter worth $45,000. Institutional investors own 27.26% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on GOOG shares. Pivotal Research boosted their price target on Alphabet from $470.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, July 23rd. HSBC set a $515.00 price target on Alphabet in a research note on Friday, August 14th. TD Cowen reissued a "buy" rating and set a $475.00 price objective on shares of Alphabet in a report on Thursday, July 23rd. Morgan Stanley cut their price target on shares of Alphabet from $415.00 to $400.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. Finally, BMO Capital Markets lifted their price target on Alphabet from $455.00 to $465.00 and gave the company an "outperform" rating in a research report on Thursday, July 23rd. Six investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $415.55.

Insider Buying and Selling at Alphabet

In related news, Director John L. Hennessy sold 1,050 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $368.63, for a total value of $387,061.50. Following the completion of the sale, the director owned 1,481 shares in the company, valued at $545,941.03. This represents a 41.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the stock in a transaction on Monday, July 27th. The stock was sold at an average price of $19.46, for a total transaction of $3,832,277.26. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 451,843 shares of company stock valued at $12,343,852. Insiders own 12.99% of the company's stock.

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI products are broadening Alphabet’s growth story. Google is expanding AI Mode with flight-price tracking, hotel-booking assistance and loyalty-point comparisons, while Gemini’s new “Personal Intelligence” features are making AI assistance more accessible to mainstream users. A potential Gemini 3.8 Flash release and the hiring of former OpenAI executive Barret Zoph further reinforce Alphabet’s competitive AI position. Google AI Mode article
• Positive Sentiment: Cloud momentum and AI infrastructure remain key bullish catalysts. Analysts point to surging Google Cloud revenue, AI adoption and a reported $514 billion backlog as evidence that Alphabet is gaining ground on Microsoft and Amazon. Wolfe Research named Alphabet a top 2027 pick and set a $460 target, citing accelerating cloud growth. Alphabet’s expanded custom-chip relationship with Marvell could also strengthen its TPU ecosystem and reduce reliance on outside suppliers over time. Google Cloud growth article
• Neutral Sentiment: Technical and valuation commentary is broadly supportive but not a new fundamental catalyst. Analysts continue to view GOOG favorably, and technical analysis identifies support near a key moving-average level. However, the stock remains below its 50-day average, suggesting investors are still weighing growth against execution risks. Alphabet technical analysis
• Negative Sentiment: Regulatory and litigation overhangs persist. Google changed its European spam-policy enforcement to avoid a potential antitrust fine, a concession that may reduce near-term financial risk but could constrain search operations. Alphabet also agreed to a roughly $353 million UK Play Store settlement, while the FTC is reportedly considering a lawsuit over YouTube account suspensions. Multiple law firms separately announced securities-fraud investigations, though these notices do not establish wrongdoing. Google EU spam policy article
• Negative Sentiment: Investors remain alert to the cost of the AI race. Reports that major technology companies have approximately $3 trillion in off-balance-sheet AI commitments, alongside Alphabet’s heavy capital spending and negative free cash flow concerns, could pressure future returns if AI monetization lags investment. Big Tech AI spending article

Alphabet Stock Performance

Shares of GOOG stock opened at $342.88 on Monday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. The firm has a market cap of $4.19 trillion, a P/E ratio of 17.22, a P/E/G ratio of 0.96 and a beta of 1.23. Alphabet Inc. has a one year low of $206.96 and a one year high of $404.47. The firm's 50 day moving average price is $347.79 and its 200-day moving average price is $340.08.

Alphabet (NASDAQ:GOOG - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The information services provider reported $9.11 EPS for the quarter, beating the consensus estimate of $2.87 by $6.24. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The company had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $116.53 billion. During the same quarter last year, the company posted $2.31 EPS. The firm's revenue was up 24.2% compared to the same quarter last year. As a group, equities research analysts predict that Alphabet Inc. will post 20.5 EPS for the current year.

Alphabet Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Monday, September 7th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, September 4th. Alphabet's payout ratio is presently 4.42%.

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.

Want to see what other hedge funds are holding GOOG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Alphabet Inc. (NASDAQ:GOOG - Free Report).

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.