Alphabet Inc. $GOOGL Shares Bought by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital nearly doubled its Alphabet stake by purchasing 8.1 million additional shares in the first quarter, bringing its holdings to 17.0 million shares valued at approximately $4.9 billion.
• Alphabet reported a strong quarterly performance, with earnings of $9.11 per share and revenue of $119.8 billion, both exceeding analyst expectations. Analysts maintain an overall “Buy” rating with an average price target of $419.86.
• Alphabet’s stock opened at $356.13, while the company announced a quarterly dividend of $0.22 per share. Recent insider sales and the rising cost of its AI infrastructure investment remain potential investor concerns.

Arrowstreet Capital Limited Partnership grew its stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 90.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 17,040,373 shares of the information services provider's stock after purchasing an additional 8,112,680 shares during the period. Alphabet comprises approximately 2.7% of Arrowstreet Capital Limited Partnership's investment portfolio, making the stock its 6th largest holding. Arrowstreet Capital Limited Partnership owned 0.14% of Alphabet worth $4,900,078,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Norges Bank purchased a new position in Alphabet in the fourth quarter valued at $30,534,239,000. Cardano Risk Management B.V. boosted its stake in shares of Alphabet by 855.3% during the 4th quarter. Cardano Risk Management B.V. now owns 14,525,280 shares of the information services provider's stock worth $4,546,413,000 after acquiring an additional 13,004,828 shares in the last quarter. Vanguard Group Inc. grew its position 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 during the period. Capital World Investors raised its stake 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 worth $12,910,542,000 after buying an additional 11,605,785 shares during the period. Finally, Diamant Asset Management Inc. grew its position in shares of Alphabet by 28,950.0% in the first quarter. Diamant Asset Management Inc. now owns 9,291,926 shares of the information services provider's stock valued at $2,671,986,000 after purchasing an additional 9,259,940 shares during the period. Institutional investors and hedge funds own 40.03% of the company's stock.

Insider Activity

In related news, insider John Kent Walker sold 8,998 shares of the business's 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 completion of the transaction, the insider 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 sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director John L. Hennessy sold 1,050 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $368.63, for a total value of $387,061.50. Following the completion of the transaction, the director owned 1,481 shares in the company, valued at approximately $545,941.03. The trade was a 41.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 600,547 shares of company stock worth $16,255,540. 11.61% of the stock is currently owned by company insiders.

Alphabet Stock Performance

Shares of GOOGL stock opened at $356.13 on Monday. Alphabet Inc. has a one year low of $187.82 and a one year high of $408.61. The firm's 50 day moving average price is $357.79 and its 200-day moving average price is $339.35. The firm has a market cap of $4.36 trillion, a P/E ratio of 17.89, a P/E/G ratio of 1.00 and a beta of 1.24. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, beating analysts' consensus estimates of $2.89 by $6.22. The business had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. As a group, equities research analysts predict that Alphabet Inc. will post 20.51 EPS for the current year.

Alphabet Dividend Announcement

The business also recently disclosed 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. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.2%. Alphabet's dividend payout ratio is currently 4.42%.

Wall Street Analyst Weigh In

GOOGL has been the subject of a number of research reports. DA Davidson set a $350.00 target price on shares of Alphabet and gave the stock a "neutral" rating in a report on Thursday, July 23rd. Loop Capital raised their target price on shares of Alphabet from $355.00 to $490.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Cantor Fitzgerald restated an "overweight" rating and set a $420.00 target price (down from $435.00) on shares of Alphabet in a report on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Alphabet in a research report on Tuesday, April 28th. Finally, Phillip Securities upgraded Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research report on Monday, July 27th. Six analysts have rated the stock with a Strong Buy rating, forty-four have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $419.86.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s custom Tensor Processing Units (TPUs) are increasingly viewed as credible alternatives to Nvidia chips. That could reduce Google’s dependence on external suppliers and create a potential external chip-revenue opportunity. Alphabet and Amazon custom AI chips
• Positive Sentiment: Recent commentary highlights Alphabet’s record quarter, strong Google Cloud growth, Gemini adoption and enterprise AI demand. Analysts and value-focused investors continue to view GOOGL as comparatively inexpensive among large technology and AI companies. Alphabet AI investment and valuation
• Positive Sentiment: Google is reportedly supporting a $15 billion Anthropic data-center project with chips and financial guarantees, while Oracle is expanding its partnership to bring Gemini models to enterprise applications. These initiatives could drive Google Cloud demand and strengthen Alphabet’s AI ecosystem. Anthropic data center backed by Google
• Neutral Sentiment: Alphabet’s reported quarterly earnings and revenue beat consensus estimates by wide margins, supporting the fundamental case, although investors remain focused on whether AI growth will translate into sufficient cash returns.
• Negative Sentiment: Alphabet withdrew its Google Earth AI image-generation feature only one day after launch following criticism that fabricated imagery could spread misinformation. The quick reversal limits immediate product risk but raises questions about AI governance and rollout discipline. Google Earth AI feature withdrawn
• Negative Sentiment: The AI buildout is becoming increasingly expensive. Alphabet is targeting up to $205 billion in 2026 capital expenditures, while rising memory and infrastructure costs are pressuring cash flow and increasing future depreciation. AI buildout costs and cash flow
• Negative Sentiment: Recent insider sales were small relative to the executives’ remaining holdings, but they provide a modest sentiment headwind. Separately, investor-law-firm investigations could create additional legal and reputational overhang. Alphabet director stock sale

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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