Kerrisdale Advisers LLC Cuts Holdings in Alphabet Inc. $GOOGL

Key Points

• Kerrisdale Advisers reduced its Alphabet stake by 13.5% in the second quarter, selling 3,975 shares and retaining 25,412 shares valued at approximately $9.1 million. Alphabet remains the firm’s seventh-largest holding and represents 2.3% of its portfolio.
• Analyst sentiment remains favorable, with an overall “Buy” rating and an average price target of $420.19; recent targets range from $400 to $465. Institutional investors own approximately 40.03% of Alphabet.
• Alphabet reported quarterly revenue of $119.8 billion and EPS of $9.11, exceeding analyst expectations, while growing AI infrastructure spending is raising concerns about profitability and returns on capital. The company also declared a quarterly dividend of $0.22 per share.

Kerrisdale Advisers LLC lowered its holdings in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 13.5% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 25,412 shares of the information services provider's stock after selling 3,975 shares during the quarter. Alphabet comprises approximately 2.3% of Kerrisdale Advisers LLC's investment portfolio, making the stock its 7th largest holding. Kerrisdale Advisers LLC's holdings in Alphabet were worth $9,081,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of GOOGL. EMC Capital Management acquired a new position in shares of Alphabet during the fourth quarter valued at about $33,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Alphabet in the 4th quarter worth about $32,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Alphabet in the 4th quarter worth about $38,000. Bard Associates Inc. bought a new position in Alphabet in the 4th quarter valued at about $52,000. Finally, Graney & King LLC lifted its position in Alphabet by 38.5% in the 2nd quarter. Graney & King LLC now owns 180 shares of the information services provider's stock valued at $64,000 after acquiring an additional 50 shares in the last quarter. Institutional investors own 40.03% of the company's stock.

Analysts Set New Price Targets

GOOGL has been the subject of a number of analyst reports. Barclays reiterated an "overweight" rating and set a $425.00 price target (up from $405.00) on shares of Alphabet in a research note on Thursday, July 23rd. DZ Bank raised Alphabet to a "strong-buy" rating in a research note on Thursday, July 23rd. Phillip Securities upgraded Alphabet from a "moderate buy" rating to a "strong-buy" rating in a report on Monday, July 27th. BMO Capital Markets set a $465.00 target price on Alphabet and gave the company an "outperform" rating in a research report on Thursday, July 23rd. Finally, Morgan Stanley set a $400.00 price target on Alphabet and gave the stock an "overweight" rating in a report on Thursday, July 23rd. Five equities research analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $420.19.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google expanded its partnership with Cathay Pacific to test AI designed to reduce aircraft contrail warming. Early real-world testing reportedly cut contrail-related warming by 40%, highlighting potential environmental applications for Google’s AI technology. Cathay Pacific, Google expand AI trials to cut climate-warming aircraft contrails
• Positive Sentiment: Pixxel, an Indian satellite startup backed by Google, raised $100 million in new funding. The deal strengthens Alphabet’s exposure to Earth observation, space software and sovereign space systems, although the financial effect on Alphabet itself is likely limited. Google-backed Indian space startup raises $100 million in latest funding round
• Positive Sentiment: Several investment articles argue Alphabet is underappreciated within the “Magnificent Seven,” citing its search and cloud cash flows, AI opportunities and a valuation viewed as reasonable relative to growth. Berkshire Hathaway’s continued Alphabet purchases also provide a prominent vote of confidence.
• Neutral Sentiment: Warren Buffett reportedly initiated Berkshire’s Alphabet investment, while Greg Abel is expected to maintain significant influence over the portfolio. The development is sentiment-positive but does not change Alphabet’s operating outlook.
• Neutral Sentiment: Alphabet’s partnerships with AI companies, including CrowdStrike, reinforce its role in enterprise AI and cybersecurity, but the commercial impact remains uncertain. CrowdStrike unveiled a broad AI security platform push
• Negative Sentiment: Bill Ackman’s fund fully exited Alphabet in the second quarter and bought Netflix instead, citing concern that aggressive AI infrastructure spending could pressure profitability and increase volatility.
• Negative Sentiment: Commentary warns that rising AI capital expenditures are reducing returns on capital and could challenge Alphabet’s traditionally strong financial profile.
• Negative Sentiment: A law firm announced a securities-fraud investigation seeking Alphabet investors, but the announcement provides no finding of wrongdoing and appears primarily to solicit shareholders.

Alphabet Stock Performance

Shares of GOOGL stock opened at $338.46 on Tuesday. 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 company has a market capitalization of $4.14 trillion, a price-to-earnings ratio of 17.00, a PEG ratio of 0.98 and a beta of 1.22. Alphabet Inc. has a 52-week low of $231.90 and a 52-week high of $408.61. The company has a 50-day simple moving average of $348.72 and a two-hundred day simple moving average of $343.12.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, topping the consensus estimate 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 analysts' expectations of $117.07 billion. Research analysts anticipate that Alphabet Inc. will post 20.5 EPS for the current fiscal year.

Alphabet Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be given 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 of this dividend is Friday, September 4th. Alphabet's dividend payout ratio (DPR) is presently 4.42%.

Insider Activity at Alphabet

In related news, CAO Marsida Saraci sold 449 shares of Alphabet stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total transaction of $149,606.80. Following the sale, the chief accounting officer directly owned 27,386 shares in the company, valued at approximately $9,125,015.20. This trade represents a 1.61% 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, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the business's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total value of $2,232,808.20. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 451,925 shares of company stock valued at $12,371,544. 11.61% of the stock is owned by insiders.

Alphabet Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.