Employees Retirement System of Texas Sells 69,209 Shares of Alphabet Inc. $GOOG

Key Points

• Employees Retirement System of Texas trimmed its Alphabet stake by 5.6% in the fourth quarter, selling 69,209 shares. The fund still held 1,161,911 shares, making Alphabet its 7th-largest position worth about $364.6 million.
• Alphabet reported strong quarterly results, with EPS of $5.11 versus the $2.68 consensus and revenue of $109.9 billion, above expectations. Revenue rose 21.8% year over year, and analysts now expect full-year EPS of 14.28.
• The company raised its quarterly dividend to $0.22 per share from $0.21, payable June 15 to shareholders of record on June 8. Alphabet also continues to draw mixed attention from analysts, with a consensus rating of “Buy” and an average price target of $376.00.

Employees Retirement System of Texas reduced its position in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) by 5.6% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 1,161,911 shares of the information services provider's stock after selling 69,209 shares during the quarter. Alphabet comprises about 3.0% of Employees Retirement System of Texas' portfolio, making the stock its 7th biggest position. Employees Retirement System of Texas' holdings in Alphabet were worth $364,608,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Nvest Wealth Strategies Inc. acquired a new position in Alphabet during the 4th quarter worth approximately $38,000. Imprint Wealth LLC acquired a new position in Alphabet during the 3rd quarter worth approximately $31,000. Towne Trust Company N.A raised its stake in shares of Alphabet by 34.0% in the fourth quarter. Towne Trust Company N.A now owns 134 shares of the information services provider's stock worth $42,000 after purchasing an additional 34 shares during the last quarter. Creative Capital Management Investments LLC raised its stake in shares of Alphabet by 1,438.5% in the fourth quarter. Creative Capital Management Investments LLC now owns 200 shares of the information services provider's stock worth $63,000 after purchasing an additional 187 shares during the last quarter. Finally, Optima Capital LLC purchased a new stake in shares of Alphabet in the fourth quarter worth approximately $79,000. 27.26% of the stock is owned by institutional investors and hedge funds.

Alphabet Stock Performance

Shares of GOOG opened at $369.27 on Friday. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $4.47 trillion, a price-to-earnings ratio of 28.17, a PEG ratio of 1.57 and a beta of 1.22. The stock has a 50 day moving average of $348.54 and a 200 day moving average of $326.80. Alphabet Inc. has a 12 month low of $163.33 and a 12 month high of $404.47.

Alphabet (NASDAQ:GOOG - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The information services provider reported $5.11 EPS for the quarter, beating analysts' consensus estimates of $2.68 by $2.43. The company had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.96 billion. Alphabet had a return on equity of 38.99% and a net margin of 37.92%.Alphabet's revenue was up 21.8% on a year-over-year basis. During the same period last year, the business posted $2.81 earnings per share. As a group, sell-side analysts forecast that Alphabet Inc. will post 14.28 earnings per share for the current year.

Alphabet Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 8th will be given a dividend of $0.22 per share. The ex-dividend date of this dividend is Monday, June 8th. This is a positive change from Alphabet's previous quarterly dividend of $0.21. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.2%. Alphabet's dividend payout ratio (DPR) is 6.71%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on GOOG. Wedbush reissued an "outperform" rating and issued a $370.00 price objective on shares of Alphabet in a research note on Thursday, February 5th. JPMorgan Chase & Co. increased their price objective on Alphabet from $395.00 to $460.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. The Goldman Sachs Group reissued a "buy" rating and issued a $450.00 price objective on shares of Alphabet in a research note on Thursday, May 21st. BMO Capital Markets reissued an "outperform" rating and issued a $400.00 price objective on shares of Alphabet in a research note on Thursday, February 5th. Finally, Freedom Capital downgraded shares of Alphabet from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Five research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Alphabet has an average rating of "Buy" and a consensus price target of $376.00.

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet continues to show strong AI momentum, including a reported expansion of its Google Cloud partnership with Lovable and reports that Apple may use Google Cloud to help power a revamped Siri. Those deals reinforce demand for Alphabet’s cloud and AI infrastructure. Lovable signs multi-year deal with Google Cloud to up usage 5x, source says
• Positive Sentiment: Investor confidence appears to be supported by major backers, with Berkshire Hathaway and ARK-related buying cited alongside strong analyst interest and price targets near the low-to-mid $400s. That institutional support is helping offset some of the recent weakness. Google Stock Lures in Both Cathie Wood and Berkshire Hathaway as Giant Investors Rush for a Discount
• Neutral Sentiment: Alphabet’s AI spending plan and equity raise remain the biggest focus: the company increased its planned capital raise to about $84.75 billion to fund AI infrastructure, while also guiding capital expenditures as high as $190 billion. Investors see this as a sign of ambition and demand, but also of heavy near-term spending needs. Alphabet to raise $84.75 billion in upsized equity offering to fund AI ambitions
• Neutral Sentiment: Alphabet also reported strong AI usage trends, including Gemini reaching 900 million users, which supports the long-term growth narrative even as the market debates whether AI returns justify the spending surge. Alphabet’s Gemini AI App Surges to 900 Million Users
• Negative Sentiment: Sentiment was pressured by Alphabet’s massive new equity financing, which raised dilution and return-on-capex questions as the company leans harder into AI buildout. Some investors are worried the AI infrastructure race is becoming too expensive. Google Stock Drops on New Data Center Buildout amid $190B Capex Headache
• Negative Sentiment: Alphabet’s AI search business also faces new U.K. conduct requirements that let publishers opt out of AI summaries and training use, which could constrain the company’s search monetization and data access over time. UK regulator enforces new competition requirements for Google search
• Negative Sentiment: Reports of quiet layoffs in Google Cloud added to the cautious tone, suggesting Alphabet is still trimming costs even as it ramps spending elsewhere. Google is quietly laying off staff in its cloud division

Insider Activity at Alphabet

In related news, Director John L. Hennessy sold 1,050 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $393.26, for a total transaction of $412,923.00. Following the completion of the sale, the director directly owned 2,531 shares of the company's stock, valued at approximately $995,341.06. This trade represents a 29.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Amie Thuener O'toole sold 617 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $289.63, for a total value of $178,701.71. Following the sale, the chief accounting officer directly owned 10,093 shares of the company's stock, valued at $2,923,235.59. The trade was a 5.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 193,016 shares of company stock valued at $17,282,549 in the last ninety days. Insiders own 12.99% of the company's stock.

About Alphabet

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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