Alphabet Inc. $GOOGL Shares Sold by Fundsmith LLP

Key Points

• Fundsmith LLP reduced its Alphabet stake by 40% in the second quarter, selling 1.18 million shares and retaining 1.77 million shares worth approximately $633.7 million. Alphabet remains Fundsmith’s seventh-largest holding at 4.6% of its portfolio.
• Alphabet reported stronger-than-expected quarterly results, with EPS of $9.11 versus the $2.89 consensus and revenue of $119.8 billion compared with estimates of $117.07 billion. Analysts maintain a consensus “Buy” rating with a $420.19 price target.
• The company declared a quarterly dividend of $0.22 per share, equivalent to an annualized $0.88 dividend and a 0.3% yield; institutional investors own about 40% of Alphabet’s outstanding shares.

Fundsmith LLP cut its holdings in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 40.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,773,354 shares of the information services provider's stock after selling 1,182,844 shares during the quarter. Alphabet accounts for 4.6% of Fundsmith LLP's portfolio, making the stock its 7th biggest holding. Fundsmith LLP's holdings in Alphabet were worth $633,744,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of GOOGL. State Street Corp boosted its position 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 worth $40,524,841,000 after purchasing an additional 4,008,374 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Alphabet by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 146,193,037 shares of the information services provider's stock valued at $45,625,595,000 after purchasing an additional 2,666,676 shares in the last quarter. Norges Bank purchased a new position in shares of Alphabet in the 4th quarter valued at about $30,534,239,000. Bank of America Corp DE lifted its stake in shares of Alphabet by 4.9% in the fourth quarter. Bank of America Corp DE now owns 69,108,183 shares of the information services provider's stock valued at $21,630,861,000 after purchasing an additional 3,218,852 shares during the period. Finally, Capital World Investors lifted its stake in shares of Alphabet by 1.5% in the fourth quarter. Capital World Investors now owns 53,881,908 shares of the information services provider's stock valued at $16,865,158,000 after purchasing an additional 774,336 shares during the period. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet Stock Performance

Shares of GOOGL opened at $338.50 on Friday. Alphabet Inc. has a 12-month low of $235.84 and a 12-month high of $408.61. The stock has a market cap of $4.14 trillion, a P/E ratio of 17.00, a PEG ratio of 0.98 and a beta of 1.22. The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16. The company has a 50-day moving average of $346.75 and a two-hundred day moving average of $343.66.

Alphabet (NASDAQ:GOOGL - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, beating the consensus estimate of $2.89 by $6.22. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The business had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.07 billion. As a group, research analysts predict that Alphabet Inc. will post 20.52 EPS for the current fiscal 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 $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Friday, September 4th. Alphabet's dividend payout ratio is currently 4.42%.

Analyst Ratings Changes

GOOGL has been the topic of several recent analyst reports. Roth Capital restated a "buy" rating and set a $440.00 target price (up from $435.00) on shares of Alphabet in a research report on Thursday, July 23rd. Morgan Stanley set a $400.00 price target on shares of Alphabet and gave the company an "overweight" rating in a research report on Thursday, July 23rd. DZ Bank raised Alphabet to a "strong-buy" rating in a research note on Thursday, July 23rd. Wall Street Zen lowered Alphabet from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, DA Davidson set a $350.00 price target on Alphabet and gave the stock a "neutral" rating in a report on Thursday, July 23rd. Five analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Alphabet has a consensus rating of "Buy" and a consensus price target of $420.19.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google agreed to secure nuclear power for 22 years, reportedly locking in roughly half of a plant’s output through 2049. The deal could provide more predictable electricity costs and reliable power for energy-intensive AI data centers, strengthening Alphabet’s infrastructure position. Alphabet Jumps 2.5% After Locking In 22 Years of Nuclear Power
• Positive Sentiment: Google completed its acquisition of AI startup Mechanize in a deal reportedly valued at more than $1.5 billion. Mechanize’s former CEO and other employees are joining Google, potentially adding talent focused on AI agents and automation. Google just completed its $1.5 billion-plus deal for AI startup Mechanize
• Positive Sentiment: Investor commentary highlighted Alphabet’s strong AI and cloud outlook. Google Cloud is reportedly growing 82% year over year, while Alphabet’s Gemini technology is expanding into professional video-editing software, supporting the case that AI can broaden enterprise revenue beyond search advertising. Microsoft Vs. Alphabet: The Enterprise Fight No One Saw Coming
• Positive Sentiment: Recent coverage continues to present Alphabet as attractively valued relative to its growth prospects. The company’s latest reported quarter exceeded expectations, with earnings of $9.11 per share versus a $2.89 consensus estimate and revenue of $119.8 billion versus $117.07 billion expected.
• Neutral Sentiment: Alphabet’s inclusion among major AI and cloud beneficiaries, along with Berkshire Hathaway’s reported position in the company, may support investor interest but does not represent a new operating catalyst. Berkshire Hathaway Has a New Top Holding, and It Dominates Its Market
• Negative Sentiment: A law firm said it is continuing an investigation into possible federal securities-law violations involving Alphabet. The announcement does not establish wrongdoing, but it introduces a potential legal and reputational overhang. Securities Fraud Investigation Into Alphabet Continues
• Negative Sentiment: Alphabet faces scrutiny over the scale of AI infrastructure spending, potential financing pressure across the AI industry, and electricity-demand concerns related to new data centers. Finland opposition parties have warned that Google’s expansion could strain local power supplies and raise energy costs. Finland Risks Strained Power Supply After Google AI Deal

Insider Activity at Alphabet

In related news, CAO Marsida Saraci sold 449 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total transaction of $149,606.80. Following the sale, the chief accounting officer owned 27,386 shares of the company's stock, valued at $9,125,015.20. This trade represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Frances Arnold sold 82 shares of Alphabet stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $337.71, for a total value of $27,692.22. Following the sale, the director owned 18,995 shares of the company's stock, valued at approximately $6,414,801.45. This represents a 0.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 451,925 shares of company stock valued at $12,371,544 over the last quarter. Insiders own 11.61% of the company's stock.

Alphabet Profile

Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.

Alphabet's largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.

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