Alphabet Inc. $GOOGL Stake Trimmed by DMC Group LLC

Key Points

• DMC Group LLC reduced its Alphabet stake by 17.6% in the second quarter, selling 2,064 shares and retaining 9,638 shares valued at approximately $3.44 million. Institutional investors and hedge funds collectively own 40.03% of Alphabet.
• Analyst sentiment remains positive, with Alphabet receiving a consensus “Buy” rating and an average price target of $422.16. Recent targets include $445 from Wedbush and $400 from Morgan Stanley.
• Alphabet reported quarterly revenue of $119.8 billion and earnings of $9.11 per share, exceeding estimates, while growth opportunities include AI chip sales and Waymo’s planned Singapore expansion. Risks include increased AI infrastructure spending, higher interest rates and new ad-tech restrictions.

DMC Group LLC lessened its holdings in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 17.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 9,638 shares of the information services provider's stock after selling 2,064 shares during the quarter. Alphabet makes up about 2.4% of DMC Group LLC's portfolio, making the stock its 8th biggest holding. DMC Group LLC's holdings in Alphabet were worth $3,444,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. Invesco Ltd. grew its holdings in Alphabet by 0.5% in the 4th quarter. Invesco Ltd. now owns 45,394,474 shares of the information services provider's stock valued at $14,208,470,000 after buying an additional 208,362 shares in the last quarter. Fisher Asset Management LLC grew its holdings in shares of Alphabet by 1.6% in the fourth quarter. Fisher Asset Management LLC now owns 38,106,033 shares of the information services provider's stock valued at $11,927,189,000 after purchasing an additional 583,078 shares during the period. Amundi grew its holdings in shares of Alphabet by 12.7% in the first quarter. Amundi now owns 31,745,979 shares of the information services provider's stock valued at $9,128,850,000 after purchasing an additional 3,574,810 shares during the period. Nuveen LLC increased its position in Alphabet by 1.7% during the fourth quarter. Nuveen LLC now owns 29,166,806 shares of the information services provider's stock worth $9,129,210,000 after purchasing an additional 478,848 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Alphabet by 10.1% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 17,724,321 shares of the information services provider's stock worth $6,334,186,000 after purchasing an additional 1,631,721 shares during the last quarter. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on GOOGL shares. Wedbush reiterated an "outperform" rating and issued a $445.00 target price on shares of Alphabet in a report on Thursday, July 23rd. Freedom Capital upgraded shares of Alphabet from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. Jefferies Financial Group reaffirmed a "buy" rating on shares of Alphabet in a research report on Monday, June 22nd. Morgan Stanley set a $400.00 price objective on Alphabet and gave the company an "overweight" rating in a report on Thursday, July 23rd. Finally, Phillip Securities upgraded Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research report on Monday, July 27th. Five analysts have rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Alphabet has a consensus rating of "Buy" and an average price target of $422.16.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI chip sales add a new revenue stream: Alphabet began recognizing revenue from sales of its internally developed AI chip systems in the second quarter. Investors may view the business as both a potential growth driver and a way to monetize Google’s technology infrastructure. 2 Stocks to Buy as Google Starts Selling Its AI Chips
• Positive Sentiment: Analyst raises price target: Tigress Financial Partners increased its price target for GOOGL to $485, reflecting confidence in Alphabet’s Search, Cloud, YouTube, Gemini and custom-chip opportunities. Alphabet Price Target Raised to $485
• Positive Sentiment: Waymo expands internationally: Alphabet’s autonomous-driving unit plans to launch an all-electric robotaxi service in Singapore by 2028, strengthening the long-term investment case for Alphabet’s “Other Bets” portfolio. Waymo to Bring Autonomous Ride-Hailing to Singapore
• Positive Sentiment: Options activity signals bullish positioning: Investors purchased roughly 520,000 Alphabet call options, above typical volume, indicating increased speculative interest in further upside.
• Neutral Sentiment: Ad-tech ruling avoids a breakup but imposes restrictions: A federal judge ordered Google to share more auction data with publishers and appoint an antitrust monitor, but rejected a forced breakup. Avoiding structural separation limits the immediate risk to Alphabet’s advertising business, while the behavioral remedies could pressure operations and margins. Tech Watchdogs Criticize Google Adtech Ruling
• Negative Sentiment: Higher rates and AI spending remain risks: The Federal Reserve’s rate increase and Alphabet’s heavy investment in AI infrastructure could keep pressure on free cash flow and valuation, even as Cloud backlog and AI demand remain strong.

Insider Transactions at Alphabet

In other Alphabet news, insider John Walker sold 8,998 shares of the business's stock in a transaction dated 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 sale, the insider directly owned 75,290 shares in the company, valued at $26,298,044.10. This represents a 10.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Frances Arnold sold 112 shares of the stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $351.28, for a total transaction of $39,343.36. Following the sale, the director directly owned 18,833 shares in the company, valued at $6,615,656.24. This represents a 0.59% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 450,875 shares of company stock valued at $11,984,482. 11.61% of the stock is owned by insiders.

Alphabet Price Performance

Alphabet stock opened at $349.54 on Friday. The company's 50 day simple moving average is $345.20 and its 200-day simple moving average is $344.91. 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 Inc. has a 1 year low of $235.84 and a 1 year high of $408.61. The company has a market capitalization of $4.27 trillion, a price-to-earnings ratio of 17.56, a price-to-earnings-growth ratio of 1.01 and a beta of 1.22.

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 for the quarter, topping analysts' consensus estimates of $2.89 by $6.22. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The firm had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. As a group, equities research analysts expect that Alphabet Inc. will post 20.51 earnings per share for the current year.

Alphabet Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Monday, September 7th were issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Friday, September 4th. Alphabet's dividend payout ratio (DPR) is 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.