Alphabet Inc. $GOOG Shares Sold by LFL Advisers LLC

Key Points

• LFL Advisers LLC reduced its Alphabet stake by 22.3% in the first quarter, selling 29,126 shares and leaving it with 101,453 shares worth about $29.1 million.
• Alphabet reported a strong Q2 earnings beat, with EPS of $9.11 and revenue of $119.8 billion, both above estimates, while revenue rose 24.2% year over year. Google Cloud revenue also surged 82% and margins improved sharply.
• Despite the strong results, investors remain concerned about rising capital spending and negative free cash flow tied to AI infrastructure, even as analysts generally maintain a bullish outlook with a consensus Buy rating.

LFL Advisers LLC cut its stake in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) by 22.3% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 101,453 shares of the information services provider's stock after selling 29,126 shares during the quarter. Alphabet comprises approximately 8.8% of LFL Advisers LLC's investment portfolio, making the stock its 7th biggest holding. LFL Advisers LLC's holdings in Alphabet were worth $29,103,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the company. Goepper Burkhardt LLC boosted its stake in shares of Alphabet by 10.1% in the first quarter. Goepper Burkhardt LLC now owns 1,202 shares of the information services provider's stock worth $345,000 after buying an additional 110 shares during the last quarter. First Citizens Bank & Trust Co. raised its position in Alphabet by 1.5% during the first quarter. First Citizens Bank & Trust Co. now owns 186,070 shares of the information services provider's stock valued at $53,376,000 after acquiring an additional 2,811 shares in the last quarter. Acumen Wealth Advisors LLC lifted its holdings in Alphabet by 25.9% in the first quarter. Acumen Wealth Advisors LLC now owns 4,121 shares of the information services provider's stock valued at $1,182,000 after acquiring an additional 849 shares during the period. Marin Bay Wealth Advisors LLC lifted its holdings in Alphabet by 16.4% in the first quarter. Marin Bay Wealth Advisors LLC now owns 7,061 shares of the information services provider's stock valued at $2,026,000 after acquiring an additional 997 shares during the period. Finally, Phillip James Consulting Co. acquired a new position in Alphabet in the first quarter valued at approximately $265,000. 27.26% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet posted a strong Q2 beat, with revenue and EPS coming in ahead of expectations, while Google Cloud revenue surged 82% and cloud margins improved sharply.
• Positive Sentiment: AI and product demand remain strong, with management saying AI usage is rising across Search, Cloud, and Gemini, supporting the long-term growth story.
• Positive Sentiment: Several analysts reiterated bullish views or raised targets, and multiple commentary pieces argued the stock looks attractive after the pullback.
• Positive Sentiment: Verizon signed a deal worth more than $1 billion with Google for dark fiber connectivity, adding another sign of infrastructure demand tied to Alphabet’s data-center buildout. Article Title
• Neutral Sentiment: Waymo is reportedly considering ending its Uber partnership, which could affect how quickly Alphabet’s robotaxi business scales, but the direct financial impact is still unclear. Article Title
• Neutral Sentiment: Alphabet also disclosed a large SpaceX stake and saw some institutional holders trim positions, but these items are secondary to the main debate over AI spending and cash flow.
• Negative Sentiment: Investors were unnerved by Alphabet’s higher CapEx guidance and negative free cash flow, which raised concerns that AI spending may be outpacing near-term returns.
• Negative Sentiment: Alphabet was also hit by an EU antitrust fine of about $1 billion, adding another regulatory overhang. Article Title
• Negative Sentiment: Moody’s warned that the industry-wide AI buildout could threaten credit quality at Alphabet and other hyperscalers, reinforcing concerns about balance-sheet strain from heavy infrastructure investment. Article Title

Insider Activity at Alphabet

In other Alphabet news, CAO Marsida Saraci sold 449 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $341.72, for a total transaction of $153,432.28. Following the transaction, the chief accounting officer directly owned 27,348 shares of the company's stock, valued at $9,345,358.56. This trade represents a 1.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider John Kent Walker sold 8,998 shares of the stock in a transaction on 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 transaction, the insider directly owned 75,290 shares in the company, valued at approximately $26,298,044.10. The trade was a 10.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 159,415 shares of company stock valued at $7,672,279 in the last three months. Company insiders own 12.99% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on GOOG. Piper Sandler reaffirmed an "overweight" rating and set a $395.00 price objective (down from $445.00) on shares of Alphabet in a research note on Thursday. UBS Group reiterated a "neutral" rating and issued a $379.00 target price (down from $400.00) on shares of Alphabet in a research note on Thursday. Oppenheimer reissued an "outperform" rating and set a $400.00 price target (down from $445.00) on shares of Alphabet in a report on Thursday. Wells Fargo & Company dropped their price target on shares of Alphabet from $418.00 to $411.00 and set an "overweight" rating on the stock in a research report on Thursday. Finally, Scotiabank reaffirmed an "outperform" rating and issued a $450.00 price objective (up from $400.00) on shares of Alphabet in a report on Thursday, April 30th. Six analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Alphabet presently has a consensus rating of "Buy" and an average price target of $410.09.

Alphabet Stock Up 0.2%

Shares of GOOG opened at $319.09 on Friday. The firm has a market cap of $3.87 trillion, a P/E ratio of 16.03, a PEG ratio of 1.31 and a beta of 1.23. Alphabet Inc. has a 12 month low of $188.70 and a 12 month high of $404.47. The stock's 50 day moving average is $360.63 and its two-hundred day moving average is $337.38. The company has a current ratio of 2.72, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, topping the consensus estimate of $2.87 by $6.24. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The business had revenue of $119.80 billion during the quarter, compared to the consensus estimate of $116.53 billion. During the same period in the prior year, the company posted $2.31 EPS. The business's quarterly revenue was up 24.2% on a year-over-year basis. Analysts predict that Alphabet Inc. will post 17.25 earnings per share for the current fiscal year.

Alphabet Announces Dividend

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

Alphabet Profile

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.