Giverny Capital Inc. Has $110.83 Million Holdings in Alphabet Inc. $GOOGL

Key Points

• Giverny Capital reduced its Alphabet position by 11% in the second quarter, selling 38,351 shares and retaining 310,118 shares valued at approximately $110.83 million. Alphabet remains about 3.8% of the fund’s portfolio.
• Alphabet reported better-than-expected quarterly results, with $9.11 in earnings per share and $119.80 billion in revenue, exceeding analyst estimates. The company also maintains a modest quarterly dividend of $0.22 per share.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $422.16, compared with the stock’s reported opening price of $349.54.

Giverny Capital Inc. lessened its holdings in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 11.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 310,118 shares of the information services provider's stock after selling 38,351 shares during the quarter. Alphabet makes up approximately 3.8% of Giverny Capital Inc.'s holdings, making the stock its 11th biggest holding. Giverny Capital Inc.'s holdings in Alphabet were worth $110,827,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. NewEdge Wealth LLC boosted its position in shares of Alphabet by 11.8% in the 4th quarter. NewEdge Wealth LLC now owns 887,209 shares of the information services provider's stock worth $277,696,000 after purchasing an additional 93,293 shares during the last quarter. PFG Investments LLC increased its holdings in Alphabet by 2.6% in the first quarter. PFG Investments LLC now owns 89,299 shares of the information services provider's stock valued at $25,679,000 after purchasing an additional 2,269 shares during the last quarter. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new position in Alphabet in the fourth quarter valued at about $28,902,000. KLCM Advisors Inc. lifted its stake in Alphabet by 66.1% in the fourth quarter. KLCM Advisors Inc. now owns 22,877 shares of the information services provider's stock valued at $7,161,000 after buying an additional 9,105 shares during the period. Finally, Elefante Mark B boosted its holdings in Alphabet by 4.5% during the second quarter. Elefante Mark B now owns 43,733 shares of the information services provider's stock worth $15,629,000 after buying an additional 1,897 shares during the last quarter. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet Price Performance

NASDAQ GOOGL opened at $349.54 on Friday. The business has a 50 day simple moving average of $345.20 and a 200 day simple moving average of $344.91. Alphabet Inc. has a 52-week low of $235.84 and a 52-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 stock has a market cap of $4.27 trillion, a price-to-earnings ratio of 17.56, a PEG ratio of 1.01 and a beta of 1.22.

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 analysts' consensus estimates of $2.89 by $6.22. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The firm had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.07 billion. Analysts anticipate that Alphabet Inc. will post 20.51 earnings per share for the current fiscal year.

Alphabet Dividend Announcement

The business also recently disclosed 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. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Friday, September 4th. Alphabet's dividend payout ratio (DPR) is presently 4.42%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on GOOGL shares. Citizens Jmp restated a "market outperform" rating and set a $515.00 target price on shares of Alphabet in a research report on Wednesday, July 22nd. Phillip Securities raised shares of Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, July 27th. Rosenblatt Securities restated a "buy" rating and set a $410.00 price objective on shares of Alphabet in a report on Thursday, September 3rd. Evercore reaffirmed an "outperform" rating and issued a $450.00 target price on shares of Alphabet in a research note on Wednesday. Finally, Truist Financial set a $420.00 target price on shares of Alphabet and gave the stock a "buy" rating in a report 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 assigned a Hold rating to the company's stock. According to MarketBeat, Alphabet presently has an average rating of "Buy" and a consensus target price of $422.16.

Insider Buying and Selling

In other Alphabet news, CAO Marsida Saraci sold 449 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total transaction of $149,606.80. Following the completion of the transaction, the chief accounting officer owned 27,386 shares in the company, valued at approximately $9,125,015.20. This represents a 1.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Frances Arnold sold 82 shares of the stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $337.71, for a total value of $27,692.22. Following the transaction, the director owned 18,995 shares of the company's stock, valued at approximately $6,414,801.45. This trade represents a 0.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 450,875 shares of company stock worth $11,984,482 over the last ninety days. Company insiders own 11.61% of the company's stock.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI chip sales add a new revenue stream: Alphabet began recognizing revenue from sales of its internally developed AI chip systems in the second quarter. Investors may view the business as both a potential growth driver and a way to monetize Google’s technology infrastructure. 2 Stocks to Buy as Google Starts Selling Its AI Chips
• Positive Sentiment: Analyst raises price target: Tigress Financial Partners increased its price target for GOOGL to $485, reflecting confidence in Alphabet’s Search, Cloud, YouTube, Gemini and custom-chip opportunities. Alphabet Price Target Raised to $485
• Positive Sentiment: Waymo expands internationally: Alphabet’s autonomous-driving unit plans to launch an all-electric robotaxi service in Singapore by 2028, strengthening the long-term investment case for Alphabet’s “Other Bets” portfolio. Waymo to Bring Autonomous Ride-Hailing to Singapore
• Positive Sentiment: Options activity signals bullish positioning: Investors purchased roughly 520,000 Alphabet call options, above typical volume, indicating increased speculative interest in further upside.
• Neutral Sentiment: Ad-tech ruling avoids a breakup but imposes restrictions: A federal judge ordered Google to share more auction data with publishers and appoint an antitrust monitor, but rejected a forced breakup. Avoiding structural separation limits the immediate risk to Alphabet’s advertising business, while the behavioral remedies could pressure operations and margins. Tech Watchdogs Criticize Google Adtech Ruling
• Negative Sentiment: Higher rates and AI spending remain risks: The Federal Reserve’s rate increase and Alphabet’s heavy investment in AI infrastructure could keep pressure on free cash flow and valuation, even as Cloud backlog and AI demand remain strong.

Alphabet 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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