Alphabet Inc. $GOOGL Stake Boosted by Capital Analysts LLC

Key Points

• Capital Analysts LLC increased its Alphabet stake by 20.4% in the second quarter, purchasing 17,481 additional shares. Its 102,987-share position was valued at approximately $36.8 million and represented 0.8% of the fund’s portfolio.
• Alphabet reported strong quarterly results, with $119.8 billion in revenue and $9.11 in earnings per share, surpassing analyst expectations. Analysts maintain a “Buy” consensus with an average price target of $420.19.
• Alphabet’s growth prospects include expansion of Gemini Enterprise into regulated industries and Waymo’s planned 2027 launch in Germany, while investors face risks from potential AI infrastructure cost increases, YouTube child-safety scrutiny and AI-governance concerns.

Capital Analysts LLC raised its holdings in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 20.4% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 102,987 shares of the information services provider's stock after purchasing an additional 17,481 shares during the period. Alphabet comprises about 0.8% of Capital Analysts LLC's portfolio, making the stock its 22nd largest holding. Capital Analysts LLC's holdings in Alphabet were worth $36,804,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. EMC Capital Management bought a new position in Alphabet during the 4th quarter worth $33,000. Lifetime Wealth Management P.C. bought a new stake in Alphabet in the fourth quarter valued at $32,000. IFC & Insurance Marketing Inc. acquired a new position in shares of Alphabet during the fourth quarter valued at $38,000. Bard Associates Inc. acquired a new position in shares of Alphabet during the fourth quarter valued at $52,000. Finally, Uniplan Investment Counsel Inc. bought a new position in shares of Alphabet during the fourth quarter worth about $65,000. 40.03% of the stock is owned by institutional investors and hedge funds.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Berkshire Hathaway increased its Alphabet stake by 83% to approximately $37.8 billion, providing a significant endorsement from a major long-term investor and reinforcing confidence in Alphabet’s search, cloud and AI businesses. Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding
• Positive Sentiment: Google is expanding Gemini Enterprise into regulated industries, including legal and financial services, creating potential for higher-value recurring cloud and AI revenue as enterprises adopt specialized agents. What Alphabet's Gemini Enterprise Push Into Regulated Industries Means For Shareholders
• Positive Sentiment: Alphabet-owned Waymo plans to enter Germany with driverless rides in 2027, offering a potential long-term growth avenue and demonstrating progress toward international commercialization. Waymo to launch driverless rides in Germany in 2027
• Neutral Sentiment: Google introduced new Gemini Live voice capabilities intended to let users complete multiple tasks without choosing among separate AI tools. The feature may improve engagement, although its near-term financial impact is unclear. Google's Gemini has a branding problem
• Negative Sentiment: A settlement involving Meta and U.S. state attorneys general has renewed scrutiny of how YouTube protects children and teenagers. Investors are concerned that similar requirements could impose substantial compliance costs or financial obligations on Alphabet. Why is Alphabet stock down today?
• Negative Sentiment: Alphabet moved its AI-responsibility team out of DeepMind, prompting concerns among researchers about independence and the team’s ability to identify risks in new models. The development adds governance and reputational uncertainty to the company’s aggressive AI rollout. Google Moves AI-Responsibility Team Out of DeepMind Lab
• Negative Sentiment: Reports that Nvidia-based AI server prices may rise by more than 15% could increase Alphabet’s infrastructure costs, adding pressure to margins as the company continues heavy AI capital spending. Alphabet Spends About 60 Cents of Every Technical Infrastructure Dollar on Servers

Analyst Upgrades and Downgrades

GOOGL has been the topic of a number of analyst reports. Roth Capital reaffirmed a "buy" rating and issued a $440.00 price objective (up from $435.00) on shares of Alphabet in a report on Thursday, July 23rd. Daiwa Securities Group upped their target price on shares of Alphabet from $380.00 to $445.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Piper Sandler restated an "overweight" rating and issued a $395.00 price target (down from $445.00) on shares of Alphabet in a research note on Thursday, July 23rd. 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 report on Thursday, April 30th. Finally, DA Davidson set a $350.00 price objective on Alphabet and gave the stock a "neutral" rating in a research report on Thursday, July 23rd. Six research analysts have rated the stock with a Strong Buy rating, forty-four have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Alphabet has an average rating of "Buy" and an average price target of $420.19.

Alphabet Stock Down 1.4%

Alphabet stock opened at $342.00 on Thursday. Alphabet Inc. has a 52 week low of $205.65 and a 52 week high of $408.61. The stock has a market cap of $4.18 trillion, a price-to-earnings ratio of 17.18, a PEG ratio of 0.97 and a beta of 1.24. The company's 50-day moving average price is $350.61 and its two-hundred day moving average price is $341.58. 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 posted its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (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 during the quarter, compared to analysts' expectations of $117.07 billion. On average, analysts expect that Alphabet Inc. will post 20.51 EPS for the current fiscal year.

Alphabet Dividend Announcement

The company also recently declared 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 is Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. Alphabet's dividend payout ratio (DPR) is 4.42%.

Insider Transactions at Alphabet

In other news, CAO Marsida Saraci sold 449 shares of the business's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total value of $149,606.80. Following the sale, the chief accounting officer owned 27,386 shares of the company's stock, valued at approximately $9,125,015.20. The trade was a 1.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $19.46, for a total value of $3,832,277.26. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 451,945 shares of company stock valued at $12,382,714 in the last quarter. Company insiders own 11.61% of the company's stock.

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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