Alphabet Inc. $GOOGL Shares Acquired by Arete Wealth Advisors LLC

Key Points

• Arete Wealth Advisors increased its Alphabet stake by 21.9% in the second quarter, purchasing 10,374 additional shares for a total of 57,726 shares valued at approximately $20.6 million. Institutional investors and hedge funds own 40.03% of Alphabet.
• Alphabet reported quarterly EPS of $9.11, far above the $2.89 consensus estimate, while revenue reached $119.8 billion versus expectations of $117.07 billion. The company also announced a $0.22 quarterly dividend, representing a 0.3% yield.
• GOOGL opened at $338.46, below its 50-day and 200-day moving averages, but analysts maintain a consensus “Buy” rating with an average price target of $420.19. Analysts cited continued growth potential, while commentary flagged rising AI infrastructure spending as a risk to profitability.

Arete Wealth Advisors LLC lifted its stake in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 21.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 57,726 shares of the information services provider's stock after purchasing an additional 10,374 shares during the quarter. Alphabet comprises approximately 0.9% of Arete Wealth Advisors LLC's portfolio, making the stock its 22nd biggest position. Arete Wealth Advisors LLC's holdings in Alphabet were worth $20,630,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Strategic Wealth Advisors LLC boosted its holdings in shares of Alphabet by 6.0% in the 1st quarter. Strategic Wealth Advisors LLC now owns 477 shares of the information services provider's stock valued at $137,000 after purchasing an additional 27 shares during the last quarter. Rockbridge Investment Management LCC increased its holdings in shares of Alphabet by 0.5% during the 1st quarter. Rockbridge Investment Management LCC now owns 5,460 shares of the information services provider's stock worth $1,570,000 after buying an additional 27 shares during the last quarter. Ruggaard & Associates LLC raised its position in shares of Alphabet by 0.9% in the 1st quarter. Ruggaard & Associates LLC now owns 2,921 shares of the information services provider's stock worth $840,000 after buying an additional 27 shares during the period. Cadia Private Client LLC raised its position in shares of Alphabet by 1.1% in the 1st quarter. Cadia Private Client LLC now owns 2,589 shares of the information services provider's stock worth $744,000 after buying an additional 28 shares during the period. Finally, Evansbrook LLC boosted its holdings in Alphabet by 0.3% in the first quarter. Evansbrook LLC now owns 9,522 shares of the information services provider's stock valued at $2,738,000 after acquiring an additional 28 shares during the last quarter. 40.03% of the stock is owned by institutional investors and hedge funds.

Alphabet Price Performance

GOOGL opened at $338.46 on Tuesday. The company has a fifty day simple moving average of $348.72 and a 200 day simple moving average of $343.12. The firm has a market cap of $4.14 trillion, a price-to-earnings ratio of 17.00, a PEG ratio of 0.98 and a beta of 1.22. Alphabet Inc. has a twelve month low of $231.90 and a twelve month high of $408.61. The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, topping analysts' consensus estimates of $2.89 by $6.22. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The firm had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.07 billion. Equities research analysts expect that Alphabet Inc. will post 20.5 EPS for the current fiscal 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 given a dividend of $0.22 per share. 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%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google expanded its partnership with Cathay Pacific to test AI designed to reduce aircraft contrail warming. Early real-world testing reportedly cut contrail-related warming by 40%, highlighting potential environmental applications for Google’s AI technology. Cathay Pacific, Google expand AI trials to cut climate-warming aircraft contrails
• Positive Sentiment: Pixxel, an Indian satellite startup backed by Google, raised $100 million in new funding. The deal strengthens Alphabet’s exposure to Earth observation, space software and sovereign space systems, although the financial effect on Alphabet itself is likely limited. Google-backed Indian space startup raises $100 million in latest funding round
• Positive Sentiment: Several investment articles argue Alphabet is underappreciated within the “Magnificent Seven,” citing its search and cloud cash flows, AI opportunities and a valuation viewed as reasonable relative to growth. Berkshire Hathaway’s continued Alphabet purchases also provide a prominent vote of confidence.
• Neutral Sentiment: Warren Buffett reportedly initiated Berkshire’s Alphabet investment, while Greg Abel is expected to maintain significant influence over the portfolio. The development is sentiment-positive but does not change Alphabet’s operating outlook.
• Neutral Sentiment: Alphabet’s partnerships with AI companies, including CrowdStrike, reinforce its role in enterprise AI and cybersecurity, but the commercial impact remains uncertain. CrowdStrike unveiled a broad AI security platform push
• Negative Sentiment: Bill Ackman’s fund fully exited Alphabet in the second quarter and bought Netflix instead, citing concern that aggressive AI infrastructure spending could pressure profitability and increase volatility.
• Negative Sentiment: Commentary warns that rising AI capital expenditures are reducing returns on capital and could challenge Alphabet’s traditionally strong financial profile.
• Negative Sentiment: A law firm announced a securities-fraud investigation seeking Alphabet investors, but the announcement provides no finding of wrongdoing and appears primarily to solicit shareholders.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on GOOGL shares. Roth Capital reiterated a "buy" rating and set a $440.00 target price (up from $435.00) on shares of Alphabet in a report on Thursday, July 23rd. BMO Capital Markets set a $465.00 price target on shares of Alphabet and gave the company an "outperform" rating in a report on Thursday, July 23rd. DZ Bank raised shares of Alphabet to a "strong-buy" rating in a research report on Thursday, July 23rd. Freedom Capital upgraded shares of Alphabet from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 23rd. Finally, Wells Fargo & Company set a $411.00 price objective on shares of Alphabet and gave the stock an "overweight" rating in a research report on Thursday, July 23rd. Five equities research analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $420.19.

Insiders Place Their Bets

In related news, CAO Marsida Saraci sold 449 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total value of $149,606.80. Following the completion of the transaction, the chief accounting officer owned 27,386 shares of the company's stock, valued at approximately $9,125,015.20. This represents a 1.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider John Walker sold 8,998 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $349.29, for a total value of $3,142,911.42. Following the sale, the insider owned 75,290 shares of the company's stock, valued at approximately $26,298,044.10. This trade represents a 10.68% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 451,925 shares of company stock worth $12,371,544. 11.61% of the stock is owned by insiders.

Alphabet 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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