Alphabet Inc. $GOOGL Holdings Decreased by Convergence Investment Partners LLC

Key Points

• Convergence Investment Partners LLC cut its Alphabet stake by 9.4% in the fourth quarter, selling 3,389 shares and leaving it with 32,804 shares worth about $10.3 million. Alphabet remains its third-largest holding.
• Alphabet posted stronger-than-expected quarterly results, reporting EPS of $5.11 versus estimates of $2.64 and revenue of $109.9 billion, above consensus. Analysts still view the stock favorably, with a “Moderate Buy” consensus and an average price target of $413.04.
• The company raised its quarterly dividend and continues to face mixed headlines: the payout increased to $0.22 per share, but its large $84.75 billion equity raise has sparked dilution concerns and regulatory scrutiny in the UK adds another overhang.

Convergence Investment Partners LLC decreased its holdings in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 9.4% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 32,804 shares of the information services provider's stock after selling 3,389 shares during the period. Alphabet makes up approximately 2.0% of Convergence Investment Partners LLC's investment portfolio, making the stock its 3rd largest holding. Convergence Investment Partners LLC's holdings in Alphabet were worth $10,268,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of the business. Northwestern Mutual Investment Management Company LLC grew its stake in shares of Alphabet by 0.3% during the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 185,896 shares of the information services provider's stock worth $58,185,000 after acquiring an additional 496 shares during the last quarter. Kapstone Financial Advisors LLC grew its stake in shares of Alphabet by 0.3% during the fourth quarter. Kapstone Financial Advisors LLC now owns 15,967 shares of the information services provider's stock worth $4,998,000 after acquiring an additional 40 shares during the last quarter. IMG Wealth Management Inc. grew its stake in shares of Alphabet by 44.1% during the fourth quarter. IMG Wealth Management Inc. now owns 1,042 shares of the information services provider's stock worth $326,000 after acquiring an additional 319 shares during the last quarter. Clarendon Private LLC grew its stake in shares of Alphabet by 13.8% during the fourth quarter. Clarendon Private LLC now owns 5,175 shares of the information services provider's stock worth $1,620,000 after acquiring an additional 626 shares during the last quarter. Finally, Left Brain Wealth Management LLC purchased a new stake in shares of Alphabet during the fourth quarter worth about $540,000. Hedge funds and other institutional investors own 40.03% of the company's stock.

Alphabet Trading Down 0.8%

Shares of NASDAQ:GOOGL opened at $358.99 on Thursday. Alphabet Inc. has a 12-month low of $162.00 and a 12-month high of $408.61. The company has a market capitalization of $4.35 trillion, a PE ratio of 27.38, a PEG ratio of 1.55 and a beta of 1.23. The business has a 50 day moving average of $349.51 and a two-hundred day moving average of $326.85. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The information services provider reported $5.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.64 by $2.47. Alphabet had a return on equity of 38.99% and a net margin of 37.92%.The company had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.98 billion. As a group, analysts forecast that Alphabet Inc. will post 14.28 EPS for the current year.

Alphabet Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Rothschild & Co Redburn boosted their price target on Alphabet from $390.00 to $430.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Citigroup restated an "outperform" rating on shares of Alphabet in a research note on Monday, May 4th. Evercore boosted their price target on Alphabet from $400.00 to $420.00 and gave the stock an "outperform" rating in a research note on Thursday, April 30th. Wedbush lifted their target price on Alphabet from $360.00 to $370.00 and gave the stock an "outperform" rating in a report on Thursday, February 5th. Finally, Susquehanna reaffirmed a "positive" rating and set a $460.00 target price (up from $400.00) on shares of Alphabet in a report on Thursday, April 30th. Two research 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 company's stock. Based on data from MarketBeat, Alphabet has a consensus rating of "Moderate Buy" and a consensus price target of $413.04.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Berkshire Hathaway’s reported $10 billion commitment to Alphabet’s capital raise is a strong vote of confidence in the company’s AI and cloud strategy, helping validate the long-term investment case. Alphabet plans to raise $80 billion for AI goals, Berkshire to invest $10 billion
• Positive Sentiment: Wall Street continues to frame Alphabet as a major AI beneficiary, with analysts reaffirming bullish price targets and noting rising demand for Google Cloud and AI infrastructure. Alphabet had its "buy" rating reaffirmed by Needham & Company LLC
• Neutral Sentiment: Lovable’s expanded multi-year Google Cloud deal highlights ongoing customer demand for Alphabet’s cloud services, but it is a modest business development rather than a major near-term catalyst. Lovable signs multi-year deal with Google Cloud to up usage 5x, source says
• Neutral Sentiment: Coverage around the AI boom and Alphabet’s expanding role in the sector supports the growth narrative, but much of it is sentiment-driven rather than a direct earnings update. Alphabet to raise $84.75 billion in upsized equity offering to fund AI ambitions
• Negative Sentiment: Alphabet’s massive $84.75 billion equity raise is stirring dilution concerns and signaling that AI infrastructure spending will remain extremely capital intensive, which has weighed on the stock. Alphabet to raise $84.75 billion in upsized equity offering to fund AI ambitions
• Negative Sentiment: UK regulators imposed new conduct requirements on Google Search, including giving publishers more control over AI use of their content, adding a fresh regulatory overhang for Alphabet’s search and AI businesses. UK regulator enforces new competition requirements for Google search

Insider Buying and Selling

In other news, CAO Amie Thuener O'toole sold 617 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was 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 directly owned 10,093 shares of the company's stock, valued at $2,923,235.59. This represents a 5.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 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 company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $23.75, for a total value 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. 11.61% of the stock is currently owned by company insiders.

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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