Alphabet Inc. $GOOG is Callahan Advisors LLC's Largest Position

Key Points

• Callahan Advisors LLC trimmed its Alphabet stake by 4.1% in the fourth quarter but still held 263,165 shares valued at about $82.6 million. Alphabet remains its largest position, accounting for 6.8% of the firm’s holdings.
• Alphabet’s latest quarterly results were strong, with EPS of $5.11 beating estimates and revenue rising 21.8% year over year to $109.9 billion. Google Cloud was highlighted as a major growth driver, posting a standout quarter with revenue up 63% and backlog climbing sharply.
• Wall Street remains broadly positive on GOOG, with a consensus Buy rating and a target price around $372.65. The company also raised its quarterly dividend to $0.22 per share, while recent insider sales and some legal/regulatory headlines add a modest overhang.

Callahan Advisors LLC trimmed its holdings in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) by 4.1% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 263,165 shares of the information services provider's stock after selling 11,149 shares during the period. Alphabet comprises approximately 6.8% of Callahan Advisors LLC's holdings, making the stock its biggest holding. Callahan Advisors LLC's holdings in Alphabet were worth $82,581,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of GOOG. Brighton Jones LLC increased its stake in shares of Alphabet by 5.6% during the 4th quarter. Brighton Jones LLC now owns 120,253 shares of the information services provider's stock worth $22,901,000 after purchasing an additional 6,410 shares in the last quarter. Worldquant Millennium Advisors LLC increased its stake in shares of Alphabet by 76.2% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 1,865,304 shares of the information services provider's stock worth $330,886,000 after purchasing an additional 806,681 shares in the last quarter. Darwin Wealth Management LLC purchased a new position in shares of Alphabet during the 2nd quarter worth approximately $658,000. Financial Advisors Network Inc. increased its stake in shares of Alphabet by 7.7% during the 2nd quarter. Financial Advisors Network Inc. now owns 7,945 shares of the information services provider's stock worth $1,409,000 after purchasing an additional 565 shares in the last quarter. Finally, Ausdal Financial Partners Inc. increased its stake in shares of Alphabet by 10.7% during the 2nd quarter. Ausdal Financial Partners Inc. now owns 37,310 shares of the information services provider's stock worth $6,618,000 after purchasing an additional 3,616 shares in the last quarter. 27.26% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Alphabet

In other news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $23.75, for a total transaction of $2,077,531.25. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider John Kent Walker sold 8,993 shares of the business's stock in a transaction on Friday, March 27th. The shares were sold at an average price of $275.89, for a total transaction of $2,481,078.77. Following the sale, the insider directly owned 51,808 shares of the company's stock, valued at $14,293,309.12. This represents a 14.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 226,481 shares of company stock worth $27,422,061. 12.99% of the stock is owned by corporate insiders.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud delivered a standout Q1 result, with revenue up 63% to $20 billion, margin reaching 32.9%, and backlog rising to $462 billion. That reinforces Alphabet’s growing second engine beyond search and supports the bull case for further upside. GOOGL Rides on Surging Google Cloud Demand: More Upside Ahead?
• Positive Sentiment: Google Cloud is also getting validation from new enterprise partnerships, including EQT’s rollout to help more than 300 portfolio companies adopt AI using Google Cloud tools. Private equity firm EQT partners with Google Cloud for AI rollout
• Positive Sentiment: Waymo news continues to suggest Alphabet’s autonomous-driving business may be undervalued, with the new Ojai robotaxi designed to lower fleet costs and expand capacity. That strengthens the long-term optionality in Alphabet’s non-advertising businesses. Waymo opens Ojai robotaxis to select riders as company aims to lower cost of fleet
• Positive Sentiment: Commentary from Jim Cramer was supportive, calling Alphabet a “crucial position” and saying “there’s a lot to like here,” which can help reinforce bullish sentiment among retail investors. Jim Cramer on Alphabet: “There’s a Lot to Like Here”
• Neutral Sentiment: Shares were also mentioned in analyst-style and market commentary framing Alphabet as a core AI and cloud beneficiary, but these pieces were largely reiterations rather than new catalysts.
• Negative Sentiment: An Indian court ruling on keyword ads could increase trademark and legal risk for Google’s search advertising business, raising concerns about a core profit driver. Indian court ruling on Google keyword ads could reshape online advertising
• Negative Sentiment: News that a Google engineer was charged in a $1.2 million Polymarket insider-trading case may create a modest reputational overhang, even though it is not a direct business or financial issue for Alphabet. US charges Google engineer with insider trading on Polymarket

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on GOOG. Piper Sandler reissued an "overweight" rating and set a $395.00 price objective on shares of Alphabet in a research note on Thursday, February 5th. JPMorgan Chase & Co. lifted their target price on shares of Alphabet from $395.00 to $460.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Alphabet in a research note on Monday, April 20th. Freedom Capital cut shares of Alphabet from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. Finally, KeyCorp reaffirmed an "overweight" rating on shares of Alphabet in a research note on Wednesday, May 20th. Six investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $372.65.

Alphabet Stock Down 2.5%

Shares of NASDAQ GOOG opened at $376.43 on Friday. Alphabet Inc. has a 52-week low of $163.33 and a 52-week high of $404.47. The firm has a fifty day moving average of $343.28 and a 200-day moving average of $324.30. The stock has a market capitalization of $4.56 trillion, a PE ratio of 28.71, a P/E/G ratio of 1.61 and a beta of 1.25. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.16.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The information services provider reported $5.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $2.43. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The company had revenue of $109.90 billion during the quarter, compared to analysts' expectations of $106.96 billion. During the same period in the previous year, the company earned $2.81 EPS. The business's quarterly revenue was up 21.8% compared to the same quarter last year. On average, analysts anticipate that Alphabet Inc. will post 14.29 EPS for the current year.

Alphabet Increases Dividend

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

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.

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