Cabot Wealth Management Inc. Decreases Stake in Alphabet Inc. $GOOG

Key Points

• Cabot Wealth Management trimmed its Alphabet stake by 5.4% in the fourth quarter, selling 6,587 shares and leaving it with 114,924 shares worth about $36.1 million. Alphabet remained the firm’s second-largest holding, making up roughly 4% of its portfolio.
• Alphabet’s recent quarterly results beat expectations, with earnings per share of $5.11 versus $2.68 expected and revenue of $109.9 billion, up 21.8% year over year. The company also raised its quarterly dividend to $0.22 per share from $0.21.
• Wall Street sentiment remains mostly upbeat: analysts’ consensus rating is Buy, with an average price target of $363.40, while TD Cowen recently lifted its target to $450. At the same time, some large investors and insiders have reduced their positions, signaling mixed sentiment after the stock’s run-up.

Cabot Wealth Management Inc. lessened its position in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) by 5.4% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 114,924 shares of the information services provider's stock after selling 6,587 shares during the period. Alphabet makes up about 4.0% of Cabot Wealth Management Inc.'s holdings, making the stock its 2nd biggest position. Cabot Wealth Management Inc.'s holdings in Alphabet were worth $36,063,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Imprint Wealth LLC purchased a new position in Alphabet in the 3rd quarter worth approximately $31,000. Manning & Napier Advisors LLC purchased a new position in Alphabet in the 3rd quarter worth approximately $32,000. Nvest Wealth Strategies Inc. purchased a new position in Alphabet in the 4th quarter worth approximately $38,000. Towne Trust Company N.A grew its stake in Alphabet by 34.0% in the 4th quarter. Towne Trust Company N.A now owns 134 shares of the information services provider's stock worth $42,000 after buying an additional 34 shares in the last quarter. Finally, Lynch Asset Management Inc. purchased a new position in Alphabet in the 3rd quarter worth approximately $61,000. Institutional investors own 27.26% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have commented on GOOG shares. Wedbush reissued an "outperform" rating and issued a $370.00 price target on shares of Alphabet in a research note on Thursday, February 5th. Weiss Ratings reissued a "buy (b)" rating on shares of Alphabet in a research note on Monday, April 20th. KeyCorp set a $370.00 price target on shares of Alphabet in a research note on Thursday, February 5th. Truist Financial set a $385.00 price target on shares of Alphabet in a research note on Wednesday, April 22nd. Finally, TD Cowen boosted their price target on shares of Alphabet from $375.00 to $450.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Six analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $363.40.

Alphabet Trading Down 1.0%

Shares of GOOG opened at $393.32 on Friday. The firm has a market cap of $4.77 trillion, a price-to-earnings ratio of 30.00, a PEG ratio of 1.68 and a beta of 1.25. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.92 and a current ratio of 1.92. Alphabet Inc. has a fifty-two week low of $163.33 and a fifty-two week high of $399.93. The firm has a 50 day moving average price of $327.44 and a 200-day moving average price of $316.98.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The information services provider reported $5.11 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $2.43. The firm had revenue of $109.90 billion during the quarter, compared to analyst estimates of $106.96 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business's quarterly revenue was up 21.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.81 EPS. As a group, equities research analysts forecast that Alphabet Inc. will post 14.29 earnings per share for the current year.

Alphabet Increases Dividend

The firm also recently disclosed 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 dividend on an annualized basis 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 presently 6.41%.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Bank of America and other analysts are expecting major Gemini AI announcements at Google I/O, which could reinforce Alphabet’s leadership in AI and support the stock. BofA Sends Blunt Message for Alphabet Investors Ahead of Google I/O
• Positive Sentiment: Oppenheimer raised its price target on Alphabet, and Erste Group also lifted earnings estimates, signaling stronger profit expectations ahead of Google I/O. Alphabet had its price target raised by Oppenheimer Holdings, Inc.
• Positive Sentiment: Several investors and funds, including Goldman Sachs and Egerton Capital, disclosed larger Alphabet stakes, suggesting continued institutional confidence. Fund Update: GOLDMAN SACHS GROUP INC Just Disclosed New Holdings
• Positive Sentiment: Reports that Google’s Gemini Flash model is quietly gaining AI customers and that Alphabet is expanding AI infrastructure point to improving enterprise demand for its AI products. Google has been quietly gaining AI customers, even before big releases next week
• Positive Sentiment: Alphabet completed a record 576.5 billion yen bond offering to fund AI capex, showing it still has strong access to capital for its infrastructure buildout. Alphabet completes record-breaking yen bond issuance
• Neutral Sentiment: News that Google is in talks with SpaceX to launch data centers into space is intriguing, but it is still early-stage and speculative. Google in Talks with SpaceX to Launch Data Centers into Space
• Neutral Sentiment: Isomorphic Labs raised $2.1 billion to use AI for drug discovery, which highlights Alphabet’s broader AI ecosystem, but the direct stock impact is limited for now. Isomorphic Labs Raises $2.1 Billion to End Disease With AI
• Negative Sentiment: Bill Ackman’s Pershing Square sharply cut its GOOG and GOOGL positions, adding to concern that some large investors may be taking profits after the run-up. Fund Update: Bill Ackman's Pershing Square Capital Management, L.P. Just Disclosed New Holdings
• Negative Sentiment: Some commentary says Alphabet’s heavy AI and cloud spending is pressuring free cash flow, raising questions about near-term margins and valuation. 6.7% AA2 Bond Yield From Alphabet, But There Is a Catch

Insider Transactions at Alphabet

In other news, insider John Kent Walker sold 8,993 shares of the business's stock in a transaction that occurred on Friday, March 27th. The shares were sold at an average price of $275.89, for a total value of $2,481,078.77. Following the completion of the sale, the insider directly owned 51,808 shares in the company, valued at approximately $14,293,309.12. The trade was a 14.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director John L. Hennessy sold 1,050 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $331.65, for a total transaction of $348,232.50. Following the completion of the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 157,953 shares of company stock worth $47,767,818. Corporate insiders own 12.99% of the company's stock.

Alphabet Company Profile

Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.

Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.

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