Alphabet Inc. $GOOGL Stake Reduced by Cullinan Associates Inc.

Key Points

• Cullinan Associates cut its Alphabet stake by 18.9% in the second quarter, selling 19,580 shares and retaining 84,174 shares valued at approximately $30.1 million.
• Despite the reduction, other major institutional investors increased their Alphabet holdings, and institutions collectively own about 40% of the company. Analysts maintain a consensus “Buy” rating with an average price target of $420.19.
• Alphabet recently exceeded quarterly expectations, reporting $9.11 in EPS and $119.8 billion in revenue, while continuing to invest in AI infrastructure and technology; insiders, however, sold $12.4 million of stock over the past 90 days.

Cullinan Associates Inc. trimmed its holdings in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 18.9% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 84,174 shares of the information services provider's stock after selling 19,580 shares during the quarter. Alphabet accounts for about 2.3% of Cullinan Associates Inc.'s portfolio, making the stock its 11th biggest holding. Cullinan Associates Inc.'s holdings in Alphabet were worth $30,081,000 as of its most recent SEC filing.

Other large investors also recently made changes to their positions in the company. Norges Bank bought a new stake in Alphabet during the fourth quarter worth approximately $30,534,239,000. Cardano Risk Management B.V. increased its holdings in shares of Alphabet by 855.3% in the fourth quarter. Cardano Risk Management B.V. now owns 14,525,280 shares of the information services provider's stock valued at $4,546,413,000 after buying an additional 13,004,828 shares in the last quarter. Capital World Investors increased its holdings in shares of Alphabet by 28.0% in the third quarter. Capital World Investors now owns 53,107,572 shares of the information services provider's stock valued at $12,910,542,000 after buying an additional 11,605,785 shares in the last quarter. Diamant Asset Management Inc. lifted its position in shares of Alphabet by 28,950.0% during the 1st 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 acquiring an additional 9,259,940 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Alphabet by 90.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 17,040,373 shares of the information services provider's stock valued at $4,900,078,000 after acquiring an additional 8,112,680 shares during the last quarter. Institutional investors own 40.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. HSBC restated a "buy" rating and issued a $420.00 target price (down from $435.00) on shares of Alphabet in a report on Tuesday, June 2nd. Needham & Company LLC reiterated a "buy" rating and issued a $450.00 price target on shares of Alphabet in a research report on Wednesday, June 3rd. Piper Sandler reissued 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. Wall Street Zen downgraded Alphabet from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $410.00 price objective on shares of Alphabet in a research note on Thursday, September 3rd. Five investment analysts have rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $420.19.

Alphabet News Roundup

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 Buying and Selling at Alphabet

In other Alphabet news, Director John Hennessy sold 1,050 shares of Alphabet stock in a transaction that occurred on 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 sale, the director directly owned 1,481 shares in the company, valued at $545,941.03. The trade was a 41.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider John Walker sold 8,998 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $349.29, for a total transaction of $3,142,911.42. Following the completion of the sale, the insider directly owned 75,290 shares of the company's stock, valued at $26,298,044.10. This represents a 10.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 451,925 shares of company stock worth $12,371,544 in the last ninety days. Insiders own 11.61% of the company's stock.

Alphabet Trading Up 1.8%

Alphabet stock 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 company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The stock has a market cap of $4.14 trillion, a P/E ratio of 17.00, a P/E/G ratio of 0.96 and a beta of 1.22. The company's fifty day simple moving average is $346.75 and its 200-day simple moving average is $343.66.

Alphabet (NASDAQ:GOOGL - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $6.22. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The firm had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. As a group, sell-side analysts forecast that Alphabet Inc. will post 20.52 EPS for the current fiscal year.

Alphabet Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be issued a $0.22 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. Alphabet's dividend payout ratio is currently 4.42%.

About Alphabet

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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