Alphabet Inc. $GOOGL Stake Trimmed by Davis Rea LTD.

Key Points

• Davis Rea LTD. trimmed its Alphabet stake by 12.5% in the fourth quarter, selling 15,262 shares and leaving it with 107,248 shares worth about $33.6 million. Alphabet remained its largest holding, representing 8.4% of the portfolio.
• Alphabet reported strong quarterly results, with earnings of $5.11 per share versus $2.64 expected and revenue of $109.9 billion versus $106.98 billion forecast. Analysts also remain upbeat, with a consensus rating of Moderate Buy and an average price target of $407.86.
• The company boosted its dividend and continues to lean into AI growth, raising the quarterly payout to $0.22 per share and highlighting new Gemini-powered products, AI partnerships, and infrastructure spending. Those initiatives point to continued investment in long-term growth, even if higher AI spending may pressure near-term margins.

Davis Rea LTD. reduced its holdings in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 12.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 107,248 shares of the information services provider's stock after selling 15,262 shares during the period. Alphabet comprises 8.4% of Davis Rea LTD.'s investment portfolio, making the stock its largest holding. Davis Rea LTD.'s holdings in Alphabet were worth $33,569,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in GOOGL. Brighton Jones LLC increased its stake in Alphabet by 3.9% during the 4th quarter. Brighton Jones LLC now owns 110,330 shares of the information services provider's stock worth $20,886,000 after buying an additional 4,110 shares during the period. Revolve Wealth Partners LLC increased its stake in Alphabet by 3.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 14,930 shares of the information services provider's stock worth $2,826,000 after buying an additional 506 shares during the period. Matrix Asset Advisors Inc. NY increased its stake in Alphabet by 17.6% during the 2nd quarter. Matrix Asset Advisors Inc. NY now owns 3,888 shares of the information services provider's stock worth $685,000 after buying an additional 581 shares during the period. Sequoia Financial Advisors LLC increased its stake in Alphabet by 11.2% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 485,486 shares of the information services provider's stock worth $85,557,000 after buying an additional 48,805 shares during the period. Finally, United Bank increased its stake in Alphabet by 6.9% during the 2nd quarter. United Bank now owns 48,204 shares of the information services provider's stock worth $8,495,000 after buying an additional 3,120 shares during the period. 40.03% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Alphabet

In other news, insider John Kent Walker sold 47,574 shares of the company's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $301.45, for a total value of $14,341,182.30. Following the completion of the transaction, the insider owned 13,227 shares in the company, valued at approximately $3,987,279.15. This represents a 78.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director John L. Hennessy sold 1,050 shares of the company's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $331.65, for a total transaction of $348,232.50. Following the completion of the transaction, the director owned 3,581 shares of the company's stock, valued at approximately $1,187,638.65. The trade was a 22.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 158,553 shares of company stock worth $47,951,856. Corporate insiders own 11.61% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Cantor Fitzgerald upped their target price on shares of Alphabet from $395.00 to $465.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Mizuho upped their target price on shares of Alphabet from $420.00 to $460.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 6th. DZ Bank reiterated a "buy" rating on shares of Alphabet in a report on Monday, February 16th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Alphabet in a report on Tuesday, April 28th. Finally, Citizens Jmp boosted their price target on shares of Alphabet from $385.00 to $515.00 and gave the stock a "market outperform" rating in a report on Monday, May 4th. Two equities research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $407.86.

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is rolling out Gemini-powered Android features that let AI understand screen context and complete multi-step tasks, strengthening its AI platform and expanding practical use cases across its ecosystem.
• Positive Sentiment: Google is bringing “agentic” AI, Gemini in Chrome, and new AI-native “Googlebooks” laptops to market, signaling a broader product cycle that could support future revenue growth and keep Alphabet competitive with Apple and other tech giants.
• Positive Sentiment: Alphabet’s partnership with Affirm and Klarna to embed pay-over-time options into Gemini and Google Search could boost commerce activity, improve conversion rates, and make Google Pay more valuable to consumers and merchants.
• Positive Sentiment: Google-backed Isomorphic Labs raised $2.1 billion to scale AI-driven drug discovery, underscoring investor enthusiasm for Alphabet’s broader AI ecosystem and the value of its venture investments.
• Positive Sentiment: Reports that Alphabet is exploring first-ever yen bond financing to fund AI infrastructure suggest the company is willing to invest aggressively in compute capacity, which investors may view as necessary to defend and extend its AI lead.
• Neutral Sentiment: Commentary around Alphabet nearing Nvidia in market value and being at the center of the AI boom highlights strong momentum, but these are more market narratives than immediate fundamental catalysts.
• Negative Sentiment: Alphabet’s heavier AI spending and new debt issuance may pressure near-term margins and raise concerns that the company is trading balance-sheet strength for a more capital-intensive growth strategy.
• Negative Sentiment: Waymo’s robotaxi recall over a self-driving software issue is a reminder that Alphabet’s broader “Other Bets” businesses still carry operational and regulatory execution risks.

Alphabet Trading Down 0.3%

Shares of Alphabet stock opened at $387.35 on Wednesday. The company has a fifty day simple moving average of $323.56 and a 200-day simple moving average of $314.66. Alphabet Inc. has a 12-month low of $156.16 and a 12-month high of $402.00. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16. The stock has a market cap of $4.69 trillion, a price-to-earnings ratio of 29.55, a PEG ratio of 1.59 and a beta of 1.26.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its earnings results on Wednesday, April 29th. The information services provider reported $5.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.64 by $2.47. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business had revenue of $109.90 billion during the quarter, compared to analysts' expectations of $106.98 billion. On average, equities analysts forecast that Alphabet Inc. will post 14.29 EPS for the current fiscal year.

Alphabet Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be issued a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Monday, June 8th. This is a positive change from Alphabet's previous quarterly dividend of $0.21. Alphabet's dividend payout ratio (DPR) is currently 6.41%.

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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