Gambit Capital Management LLC Takes $1.45 Million Position in Alphabet Inc. $GOOGL

Key Points

• Gambit Capital Management opened a new position in Alphabet during the fourth quarter, buying 4,644 shares valued at about $1.45 million. Alphabet now accounts for roughly 1% of the fund’s portfolio.
• Wall Street sentiment remains upbeat on Alphabet, with multiple analysts reiterating buy or outperform ratings and an average target price of $413.13. The stock currently has a “Moderate Buy” consensus rating.
• Alphabet reported a strong quarter, beating earnings and revenue estimates, and it recently raised its quarterly dividend to $0.22 per share. However, insider selling and ongoing scrutiny around AI spending and regulation remain notable overhangs.

Gambit Capital Management LLC acquired a new stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 4,644 shares of the information services provider's stock, valued at approximately $1,454,000. Alphabet makes up approximately 1.0% of Gambit Capital Management LLC's investment portfolio, making the stock its 21st largest holding.

Other hedge funds and other institutional investors have also modified their holdings of the company. Symmetry Partners LLC raised its position in shares of Alphabet by 0.4% during the fourth quarter. Symmetry Partners LLC now owns 7,912 shares of the information services provider's stock worth $2,476,000 after purchasing an additional 30 shares during the period. Members Trust Co raised its position in Alphabet by 0.5% during the fourth quarter. Members Trust Co now owns 6,434 shares of the information services provider's stock valued at $2,014,000 after buying an additional 31 shares during the period. Altfest L J & Co. Inc. raised its position in Alphabet by 0.4% during the fourth quarter. Altfest L J & Co. Inc. now owns 7,952 shares of the information services provider's stock valued at $2,489,000 after buying an additional 31 shares during the period. Insight 2811 Inc. raised its position in Alphabet by 1.0% during the fourth quarter. Insight 2811 Inc. now owns 3,124 shares of the information services provider's stock valued at $978,000 after buying an additional 32 shares during the period. Finally, LJI Wealth Management LLC raised its position in Alphabet by 0.4% during the fourth quarter. LJI Wealth Management LLC now owns 7,265 shares of the information services provider's stock valued at $2,274,000 after buying an additional 32 shares during the period. 40.03% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts recently weighed in on GOOGL shares. Royal Bank Of Canada set a $425.00 price target on Alphabet and gave the company an "outperform" rating in a research report on Thursday, April 30th. Citigroup restated an "outperform" rating on shares of Alphabet in a research note on Monday, May 4th. HSBC restated a "buy" rating and issued a $420.00 target price (down from $435.00) on shares of Alphabet in a research note on Tuesday. Barclays restated a "buy" rating on shares of Alphabet in a research note on Friday, May 29th. Finally, Truist Financial set a $430.00 price target on Alphabet and gave the stock a "buy" rating in a research note on Friday, May 29th. Two analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Alphabet has an average rating of "Moderate Buy" and an average target price of $413.13.

Insiders Place Their Bets

In other news, CEO Sundar Pichai sold 32,500 shares of the firm's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $307.89, for a total value of $10,006,425.00. Following the transaction, the chief executive officer directly owned 1,642,060 shares in the company, valued at $505,573,853.40. This trade represents a 1.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $23.75, for a total value of $2,077,531.25. The SEC filing for this sale provides additional information. Insiders sold 193,016 shares of company stock worth $17,282,549 over the last three months. Insiders own 11.61% of the company's stock.

Alphabet Stock Down 1.0%

NASDAQ GOOGL opened at $368.53 on Friday. The firm has a market cap of $4.47 trillion, a PE ratio of 28.11, a price-to-earnings-growth ratio of 1.59 and a beta of 1.23. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92. The stock's 50 day simple moving average is $352.70 and its 200 day simple moving average is $327.81. Alphabet Inc. has a one year low of $162.00 and a one year high of $408.61.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 EPS for the quarter, beating analysts' consensus estimates of $2.64 by $2.47. Alphabet had a return on equity of 38.99% and a net margin of 37.92%.The firm had revenue of $109.90 billion for the quarter, compared to analyst estimates of $106.98 billion. As a group, sell-side analysts forecast that Alphabet Inc. will post 14.29 earnings per share for the current fiscal year.

Alphabet Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be given a $0.22 dividend. The ex-dividend date is Monday, June 8th. This represents a $0.88 annualized dividend and a dividend yield of 0.2%. This is an increase from Alphabet's previous quarterly dividend of $0.21. Alphabet's dividend payout ratio is 6.41%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet secured a major cloud deal with SpaceX, adding a high-profile customer and boosting the investment case for its AI infrastructure business. SpaceX signs cloud deal with Google
• Positive Sentiment: New Street Research raised its price target on Alphabet to $455 and reiterated a buy rating, signaling continued Wall Street confidence. MarketScreener
• Neutral Sentiment: Reports said Google’s AI search and chatbot products faced criticism after an audit found many chatbot responses on elections were flawed, which may keep pressure on Alphabet’s AI credibility. Over 90% of AI chatbot answers about midterm elections are flawed, stunning analysis shows
• Negative Sentiment: Alphabet’s large equity raise and higher AI capex guidance are still weighing on sentiment because investors are questioning how quickly those investments will pay off. Alphabet is seeking fresh capital as stock's 4-week losing streak tests investor appetite
• Negative Sentiment: Google also faces regulatory pressure in the UK over publisher-content rules in AI search, adding another policy risk for the business. Google search facing UK 'conduct requirement'

About Alphabet

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google's core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google's consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.

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