Alphabet Inc. $GOOGL Stock: OLD Second National Bank of Aurora Reduces Holdings

Key Points

• OLD Second National Bank of Aurora reduced its Alphabet stake by 7.7% in the third quarter, selling 3,347 shares and retaining 40,262 shares valued at approximately $13.9 million. Institutional investors and hedge funds own about 40% of Alphabet.
• Alphabet’s latest quarter fell short of expectations, with adjusted earnings of $2.12 per share versus a $3.02 consensus and revenue of $127.6 billion versus $128.0 billion expected. Heavy AI and data-center investment contributed to roughly $9.1 billion in negative free cash flow, while the stock declined 12.6%.
• Despite lowered price targets and some rating downgrades, analysts remain broadly positive, with Alphabet holding a consensus “Buy” rating and an average price target of $412.82. Google Cloud and AI demand showed strong growth, though profitability and legal risks remain concerns.

OLD Second National Bank of Aurora trimmed its stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 7.7% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 40,262 shares of the information services provider's stock after selling 3,347 shares during the quarter. Alphabet accounts for 2.8% of OLD Second National Bank of Aurora's portfolio, making the stock its 8th largest position. OLD Second National Bank of Aurora's holdings in Alphabet were worth $13,853,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. Demars Financial Group LLC lifted its stake in shares of Alphabet by 8.4% in the 3rd quarter. Demars Financial Group LLC now owns 3,908 shares of the information services provider's stock valued at $1,345,000 after purchasing an additional 303 shares during the last quarter. Mills Wealth Advisors LLC boosted its holdings in Alphabet by 20.8% in the third quarter. Mills Wealth Advisors LLC now owns 1,057 shares of the information services provider's stock worth $364,000 after purchasing an additional 182 shares in the last quarter. Old North State Wealth Management LLC increased its position in Alphabet by 4.0% during the third quarter. Old North State Wealth Management LLC now owns 12,513 shares of the information services provider's stock worth $4,318,000 after buying an additional 480 shares during the last quarter. Lake Street Private Wealth LLC increased its position in Alphabet by 0.5% during the third quarter. Lake Street Private Wealth LLC now owns 40,455 shares of the information services provider's stock worth $13,920,000 after buying an additional 209 shares during the last quarter. Finally, Curry Webb Wealth Management LLC increased its position in Alphabet by 22.6% during the third quarter. Curry Webb Wealth Management LLC now owns 1,904 shares of the information services provider's stock worth $655,000 after buying an additional 351 shares during the last quarter. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Alphabet

In other Alphabet news, Director Frances Arnold sold 83 shares of Alphabet stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $340.45, for a total value of $28,257.35. Following the transaction, the director directly owned 19,076 shares of the company's stock, valued at $6,494,424.20. The trade was a 0.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 11.61% of the stock is owned by company insiders.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud delivered exceptional growth. Cloud revenue more than doubled year over year to approximately $30.7 billion, while its backlog reached $561 billion. The results indicate strong demand for Alphabet’s AI infrastructure and cloud services. Alphabet’s Cloud Business Just Doubled
• Positive Sentiment: Alphabet’s AI ecosystem is gaining commercial traction. OpenAI reportedly plans to use Google’s custom TPU chips, and search query growth reached its strongest year-over-year pace in five years. These developments could support longer-term cloud, chip and AI revenue opportunities.
• Positive Sentiment: Some analysts remain constructive despite reducing targets. Guggenheim and Needham reaffirmed “buy” ratings, while RBC, Wedbush, KeyCorp, Susquehanna and Truist retained positive or outperform-equivalent ratings.
• Neutral Sentiment: Analyst expectations were reset lower. Multiple firms cut price targets, including RBC to $400, Wedbush to $387 and DA Davidson to $300, although most remained positive or neutral rather than bearish.
• Neutral Sentiment: Alphabet faces several securities class-action notices concerning alleged disclosures about the development of its Gemini AI models. The lawsuits and lead-plaintiff deadlines add reputational and legal uncertainty, but their immediate financial impact is unclear.
• Negative Sentiment: Alphabet missed Wall Street’s quarterly expectations. Adjusted earnings were $2.12 per share versus roughly $3.02 expected, while revenue of $127.6 billion was slightly below forecasts. Search and other revenue grew 12% but missed estimates for a second consecutive quarter, and YouTube advertising revenue also fell short.
• Negative Sentiment: AI spending is pressuring cash generation. Alphabet reported approximately $9.1 billion of negative free cash flow as capital expenditures for data centers and AI capacity exceeded operating cash flow. Investors are questioning whether the spending will generate adequate returns and whether it could constrain buybacks or dividends. Alphabet earnings miss reflects first real sign that AI is taking a bite out of search
• Negative Sentiment: AI-powered search appears less profitable than traditional search, raising concerns that AI could disrupt Alphabet’s core advertising engine even as it increases user engagement.
• Negative Sentiment: An unrealized loss on Alphabet’s SpaceX investment and an EU antitrust fine further reduced reported earnings, amplifying the quarter’s bottom-line miss.

Analysts Set New Price Targets

Several equities analysts have weighed in on GOOGL shares. Citizens Jmp lowered Alphabet from a "market outperform" rating to a "market perform" rating in a report on Thursday. DA Davidson decreased their price target on Alphabet from $350.00 to $300.00 and set a "neutral" rating for the company in a research note on Thursday. Roth Capital reissued a "buy" rating and set a $440.00 price objective (up from $435.00) on shares of Alphabet in a report on Thursday, July 23rd. The Goldman Sachs Group reissued a "buy" rating and issued a $385.00 price objective on shares of Alphabet in a research note on Thursday. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $417.00 target price (up from $411.00) on shares of Alphabet in a report on Tuesday, October 6th. Five investment analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Alphabet currently has a consensus rating of "Buy" and a consensus price target of $412.82.

Alphabet Trading Down 12.6%

Alphabet stock opened at $283.82 on Friday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. The business's 50-day simple moving average is $340.29 and its 200-day simple moving average is $340.43. The firm has a market capitalization of $3.47 trillion, a PE ratio of 14.81, a PEG ratio of 0.94 and a beta of 1.21. Alphabet Inc. has a 52 week low of $270.70 and a 52 week high of $408.61.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The information services provider reported $2.12 earnings per share for the quarter, missing the consensus estimate of $3.02 by ($0.90). Alphabet had a return on equity of 46.63% and a net margin of 50.03%. The business had revenue of $127.58 billion for the quarter, compared to analyst estimates of $127.96 billion. Equities research analysts forecast that Alphabet Inc. will post 20.60 earnings per share for the current year.

Alphabet Company Profile

Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.

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