Alphabet Inc. $GOOGL Stock Position Lifted by NEOS Investment Management LLC

Key Points

• NEOS Investment Management increased its Alphabet stake by 11.4% in the second quarter, adding 229,547 shares to own 2.23 million shares valued at approximately $798.7 million. Institutional investors collectively own 40.03% of Alphabet.
• Alphabet reported strong quarterly results, with $119.8 billion in revenue and $9.11 in earnings per share, both exceeding analyst expectations. Analysts maintain a consensus “Buy” rating with an average price target of $420.19.
• Alphabet faces both growth opportunities and risks: Waymo plans to launch autonomous taxis in Tokyo in 2027, while concerns over AI regulation, heavy infrastructure spending, paused buybacks and pressure on free cash flow weigh on the stock.

NEOS Investment Management LLC increased its position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 11.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,234,827 shares of the information services provider's stock after acquiring an additional 229,547 shares during the quarter. Alphabet comprises 3.0% of NEOS Investment Management LLC's holdings, making the stock its 7th biggest position. NEOS Investment Management LLC's holdings in Alphabet were worth $798,660,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. EMC Capital Management acquired a new position in shares of Alphabet during the fourth quarter worth $33,000. Lifetime Wealth Management P.C. purchased a new position in Alphabet during the 4th quarter worth $32,000. Bard Associates Inc. purchased a new position in Alphabet during the 4th quarter worth $52,000. Graney & King LLC increased its position in Alphabet by 38.5% during the 2nd quarter. Graney & King LLC now owns 180 shares of the information services provider's stock valued at $64,000 after buying an additional 50 shares in the last quarter. Finally, Van Den Berg Management I Inc. raised its stake in Alphabet by 319.6% in the first quarter. Van Den Berg Management I Inc. now owns 214 shares of the information services provider's stock valued at $61,000 after buying an additional 163 shares during the last quarter. Hedge funds and other institutional investors own 40.03% of the company's stock.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s Waymo plans to launch a fully autonomous commercial taxi service in Tokyo in 2027 with Japanese partners, following its expansion into Las Vegas. The moves provide a potential long-term growth avenue beyond advertising and cloud computing. Waymo, Japanese partners target driverless taxi service in Tokyo in 2027
• Positive Sentiment: Analysts and market commentary continue to highlight Alphabet’s relatively inexpensive valuation, rapidly expanding Google Cloud backlog and potential for approximately 50% upside if cloud growth and AI monetization continue. A nuclear-power agreement with Fortum could also support the electricity needs of its energy-intensive data centers. Alphabet Has 50% Upside and the Cheapest Multiple of the Big Six
• Neutral Sentiment: OpenAI, Google DeepMind and Anthropic are discussing cooperation on AI safety and standards. Collaboration may reduce catastrophic-risk concerns and support clearer regulation, but it also underscores growing political scrutiny of frontier AI. OpenAI, Google, Anthropic discussing collaboration on AI safety issues
• Negative Sentiment: Proposed Senate legislation could give federal regulators authority to block or impose conditions on powerful AI models. Investors are concerned that such restrictions could delay product launches and affect the value of Alphabet’s large Cloud backlog. Senate’s Proposed AI Kill Switch Could Give Washington Veto Power Over Google’s Frontier Models
• Negative Sentiment: Investors are questioning the impact of heavy AI infrastructure spending on free cash flow. Reports that Alphabet has paused buybacks while its share count rises could reduce near-term shareholder returns and increase pressure on earnings conversion. What Happens To Alphabet Stock If Free Cash Flow Stays Negative?
• Negative Sentiment: Higher crude prices, elevated Treasury yields, expectations for another Federal Reserve rate increase and renewed uncertainty about AI demand pressured technology stocks broadly. Separate commentary also points to search-traffic headwinds and stronger digital-advertising growth at Reddit. Why is Alphabet stock falling today?

Insider Activity at Alphabet

In other Alphabet news, CAO Marsida Saraci sold 449 shares of Alphabet stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $333.20, for a total value of $149,606.80. Following the completion of the transaction, 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 ownership of the stock. 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 118,138 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total transaction of $2,232,808.20. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 450,875 shares of company stock worth $11,984,482. 11.61% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on GOOGL shares. Zacks Research lowered Alphabet from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 11th. New Street Research lifted their target price on shares of Alphabet from $450.00 to $455.00 and gave the stock a "buy" rating in a research note on Friday, June 5th. Roth Capital reissued a "buy" rating and set a $440.00 target price (up from $435.00) on shares of Alphabet in a research report on Thursday, July 23rd. DZ Bank raised shares of Alphabet to a "strong-buy" rating in a report on Thursday, July 23rd. Finally, Piper Sandler reiterated an "overweight" rating and set a $395.00 price objective (down from $445.00) on shares of Alphabet in a research note on Thursday, July 23rd. Five analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $420.19.

Alphabet Stock Performance

NASDAQ GOOGL opened at $344.98 on Wednesday. Alphabet Inc. has a fifty-two week low of $235.84 and a fifty-two week high of $408.61. 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 firm has a market capitalization of $4.22 trillion, a P/E ratio of 17.33, a PEG ratio of 1.01 and a beta of 1.22. The stock has a 50-day simple moving average of $345.97 and a two-hundred day simple moving average of $344.38.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, beating the consensus estimate of $2.89 by $6.22. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The company had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. On average, equities analysts forecast that Alphabet Inc. will post 20.52 earnings per share for the current year.

Alphabet Dividend Announcement

The company also recently declared 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. The ex-dividend date of this dividend was 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 4.42%.

Alphabet Company Profile

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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