Alphabet Inc. $GOOGL Stock: Smith Group Asset Management LLC Reduces Stake

Key Points

• Smith Group Asset Management cut its Alphabet stake by 36% in the third quarter, selling 103,201 shares. It still held 183,117 shares valued at about $63 million, making Alphabet its second-largest portfolio position.
• Alphabet reported quarterly EPS of $2.12, below the $3.02 consensus, and revenue of $127.58 billion, slightly under estimates. The stock opened at $282.57, down 2.2% on the day cited.
• Analysts maintained a consensus Buy rating, with an average price target of $412.51. Alphabet also declared a quarterly dividend of $0.22 per share.

Smith Group Asset Management LLC decreased its position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 36.0% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 183,117 shares of the information services provider's stock after selling 103,201 shares during the quarter. Alphabet accounts for 4.1% of Smith Group Asset Management LLC's portfolio, making the stock its 2nd largest position. Smith Group Asset Management LLC's holdings in Alphabet were worth $63,007,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. State Street Corp lifted its position in Alphabet by 5.6% in the 2nd quarter. State Street Corp now owns 238,977,259 shares of the information services provider's stock valued at $85,403,303,000 after acquiring an additional 12,718,127 shares in the last quarter. Amundi increased its holdings in shares of Alphabet by 4.6% in the 2nd quarter. Amundi now owns 33,203,350 shares of the information services provider's stock worth $11,865,809,000 after purchasing an additional 1,457,371 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Alphabet by 10.1% in the 2nd 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 in the last quarter. Swiss National Bank increased its holdings in shares of Alphabet by 7.1% in the 1st quarter. Swiss National Bank now owns 17,079,800 shares of the information services provider's stock worth $4,911,467,000 after purchasing an additional 1,139,400 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Alphabet by 90.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 17,040,373 shares of the information services provider's stock worth $4,900,078,000 after purchasing an additional 8,112,680 shares during the last quarter. Institutional investors own 40.03% of the company's stock.

Alphabet Trading Down 2.2%

Alphabet stock opened at $282.57 on Friday. The business has a 50-day simple moving average of $334.04 and a two-hundred day simple moving average of $339.15. The company has a market cap of $3.46 trillion, a P/E ratio of 14.75, a P/E/G ratio of 0.87 and a beta of 1.23. Alphabet Inc. has a 52-week low of $270.70 and a 52-week high of $408.61. The company has a quick ratio of 2.69, a current ratio of 2.79 and a debt-to-equity ratio of 0.19.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its earnings results on Wednesday, October 28th. The information services provider reported $2.12 EPS for the quarter, missing analysts' consensus estimates of $3.02 by ($0.90). Alphabet had a net margin of 50.03% and a return on equity of 43.33%. The business had revenue of $127.58 billion for the quarter, compared to analysts' expectations of $127.96 billion. Analysts predict that Alphabet Inc. will post 19.86 EPS for the current year.

Alphabet Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 14th. Stockholders of record on Monday, December 7th will be given a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Monday, December 7th. Alphabet's payout ratio is presently 4.59%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on GOOGL. Needham & Company LLC reaffirmed a "buy" rating and set a $450.00 price target on shares of Alphabet in a report on Thursday, October 29th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $325.00 price objective (down from $385.00) on shares of Alphabet in a report on Thursday, October 29th. UBS Group set a $332.00 target price on Alphabet and gave the stock a "neutral" rating in a research report on Thursday, October 29th. Zacks Research cut shares of Alphabet from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 11th. Finally, BMO Capital Markets restated an "outperform" rating and set a $480.00 target price (up from $465.00) on shares of Alphabet in a research note on Tuesday, October 20th. Five research analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $412.51.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google plans to invest $17 billion in a Wyoming data center, adding capacity to serve AI demand. Google’s credit backstop for Anthropic’s $19 billion TeraWulf data-center lease may also help secure future AI infrastructure. The commitments support growth, though they require substantial capital. Alphabet's Google Plans $17 Billion Investment in Wyoming Data Center
• Neutral Sentiment: Google, Meta and TikTok sued California to block a law restricting features considered addictive for users under 16. A successful challenge could limit regulatory constraints, but the outcome is uncertain and the dispute adds scrutiny of social-media practices. Meta, Google, and TikTok sue California AG over teen social media law
• Negative Sentiment: Investors remain concerned that AI infrastructure spending is pressuring free cash flow and margins. The $17 billion Wyoming project reinforces Google’s growth ambitions but could intensify worries about the scale and payoff of capital spending. Alphabet's Free Cash Flow Is Declining Faster Than Analysts Expected
• Negative Sentiment: A new lawsuit alleges a student used Google AI on a school Chromebook while planning a suicide attempt. The allegations are unproven, but the case could heighten reputational, product-safety and legal risks amid broader concerns about children’s online safety. Google faces claims student used AI chat on US school laptop to plan suicide attempt
• Negative Sentiment: Google has drawn backlash over a policy that would deny Search access to schools that restrict its AI tools, potentially damaging trust and inviting further scrutiny. Separately, law firms are publicizing a securities class action alleging misleading statements about Gemini 3.5 Pro; the claims are allegations, not findings, but add legal overhang. Google faces backlash for plan that would turn off Search for schools that restrict AI

Insider Activity at Alphabet

In related news, Director Frances Arnold sold 83 shares of the business's 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 approximately $6,494,424.20. The trade was a 0.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders sold 247 shares of company stock valued at $79,238 in the last quarter. 11.61% of the stock is owned by insiders.

Alphabet 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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