Alphabet Inc. $GOOGL is F m Investments LLC's 2nd Largest Position

Key Points

• F m Investments LLC reduced its Alphabet stake by 8.8% in the fourth quarter, but Alphabet still remains its 2nd-largest holding and made up about 4.3% of the firm’s portfolio.
• Alphabet continues to attract major institutional support, with firms like Vanguard, State Street, and Capital World Investors adding to positions; overall, 40.03% of the stock is owned by hedge funds and other institutions.
• The company reported strong quarterly results, with EPS of $5.11 beating estimates and revenue of $109.90 billion topping expectations, while analysts maintain a Moderate Buy rating and a consensus price target of $412.65.

F m Investments LLC cut its stake in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 8.8% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 365,392 shares of the information services provider's stock after selling 35,447 shares during the period. Alphabet accounts for approximately 4.3% of F m Investments LLC's holdings, making the stock its 2nd biggest holding. F m Investments LLC's holdings in Alphabet were worth $114,368,000 at the end of the most recent reporting period.

Other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in shares of Alphabet by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider's stock valued at $165,567,398,000 after acquiring an additional 12,531,695 shares in the last quarter. State Street Corp lifted its holdings in shares of Alphabet by 1.8% during the 2nd quarter. State Street Corp now owns 229,954,269 shares of the information services provider's stock valued at $40,524,841,000 after acquiring an additional 4,008,374 shares in the last quarter. Capital World Investors lifted its holdings in shares of Alphabet by 28.0% during the 3rd quarter. Capital World Investors now owns 53,107,572 shares of the information services provider's stock valued at $12,910,542,000 after acquiring an additional 11,605,785 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of Alphabet by 15.7% during the 3rd quarter. Capital Research Global Investors now owns 50,732,476 shares of the information services provider's stock valued at $12,333,076,000 after acquiring an additional 6,874,381 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Alphabet by 2.3% during the 3rd quarter. Invesco Ltd. now owns 45,186,112 shares of the information services provider's stock valued at $10,984,744,000 after acquiring an additional 1,034,292 shares in the last quarter. 40.03% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is testing Gemini-powered Search ads, including conversational and contextual ad formats that could improve monetization and help offset concerns that AI search may weaken its core advertising model.
• Positive Sentiment: Google and CrowdStrike helped take down a botnet targeting open-source software developers, reinforcing Alphabet’s cybersecurity capabilities and its role in defending the broader internet ecosystem.
• Positive Sentiment: Reports around Google I/O and Alphabet’s broader AI lineup, including new Gemini features and AI search tools, suggest the company is still aggressively innovating to defend its leadership in search and advertising.
• Neutral Sentiment: Google’s $15 billion Missouri AI data hub investment highlights long-term infrastructure spending to support AI growth, but the near-term stock impact is likely limited.
• Neutral Sentiment: Alphabet has drawn market focus from traders and analysts, with prediction-market activity suggesting shares may stay near current levels in the short term.
• Negative Sentiment: DuckDuckGo reported rising installs as some users respond negatively to Google’s AI Search overhaul, raising investor concerns that the redesign could push a portion of users toward competitors.
• Negative Sentiment: CEO Sundar Pichai acknowledged that one Google AI Search result was “more opinionated than it should be,” underscoring the risk of AI accuracy issues and potential user trust problems.
• Negative Sentiment: Federal prosecutors charged a Google employee with insider trading tied to Polymarket bets, creating a reputational overhang even though the case appears to involve an individual employee rather than core business operations.

Alphabet Price Performance

Shares of GOOGL stock opened at $388.83 on Thursday. The firm has a market cap of $4.71 trillion, a P/E ratio of 29.66, a P/E/G ratio of 1.66 and a beta of 1.26. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92. Alphabet Inc. has a 1-year low of $162.00 and a 1-year high of $408.61. The firm has a fifty day moving average of $342.73 and a two-hundred day moving average of $323.73.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share for the quarter, topping the consensus estimate of $2.64 by $2.47. The company had revenue of $109.90 billion during the quarter, compared to analyst estimates of $106.98 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. As a group, research analysts anticipate that Alphabet Inc. will post 14.29 earnings per share for the current fiscal year.

Alphabet Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 8th will be given 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 an increase from Alphabet's previous quarterly dividend of $0.21. Alphabet's dividend payout ratio is currently 6.41%.

Insider Buying and Selling at Alphabet

In other news, insider John Kent Walker sold 8,993 shares of the firm's stock in a transaction dated Friday, March 27th. The shares were sold at an average price of $275.89, for a total value of $2,481,078.77. Following the transaction, the insider directly owned 51,808 shares in the company, valued at approximately $14,293,309.12. This trade represents a 14.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director John L. Hennessy sold 1,050 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $393.26, for a total transaction of $412,923.00. Following the completion of the transaction, the director owned 2,531 shares in the company, valued at approximately $995,341.06. The trade was a 29.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 226,481 shares of company stock worth $27,422,061. 11.61% of the stock is owned by insiders.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Moffett Nathanson lifted their price target on shares of Alphabet from $305.00 to $350.00 and gave the stock a "buy" rating in a research note on Thursday, February 5th. The Goldman Sachs Group lifted their price target on shares of Alphabet from $400.00 to $450.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Piper Sandler reaffirmed an "overweight" rating and set a $425.00 price target (up from $395.00) on shares of Alphabet in a research note on Thursday, April 30th. Roth Mkm reaffirmed a "buy" rating on shares of Alphabet in a research note on Thursday, April 30th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and set a $390.00 price target (up from $345.00) on shares of Alphabet in a research note on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $412.65.

Alphabet Company Profile

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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