LHM Inc. Takes Position in Alphabet Inc. $GOOGL

Key Points

• LHM Inc. opened a new position in Alphabet during the fourth quarter, buying 22,630 shares valued at about $7.1 million. Alphabet now makes up roughly 2.6% of the firm’s portfolio.
• Wall Street sentiment remains upbeat, with several analysts raising price targets and issuing Buy or Outperform ratings. MarketBeat reports a consensus target price of $413.13 and a Moderate Buy rating overall.
• Alphabet reported strong quarterly results, beating earnings and revenue expectations, and also raised its quarterly dividend to $0.22 per share. The company’s stock recently traded at $364.26, near its 52-week high of $408.61.

LHM Inc. bought a new stake in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 22,630 shares of the information services provider's stock, valued at approximately $7,083,000. Alphabet makes up about 2.6% of LHM Inc.'s holdings, making the stock its 13th largest position.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. CIBC Bancorp USA Inc. purchased a new stake in shares of Alphabet in the third quarter valued at $416,217,000. NewEdge Wealth LLC lifted its position in shares of Alphabet by 11.8% in the fourth quarter. NewEdge Wealth LLC now owns 887,209 shares of the information services provider's stock valued at $277,696,000 after acquiring an additional 93,293 shares in the last quarter. Belpointe Asset Management LLC lifted its position in shares of Alphabet by 5.4% in the third quarter. Belpointe Asset Management LLC now owns 72,608 shares of the information services provider's stock valued at $17,652,000 after acquiring an additional 3,740 shares in the last quarter. Private Advisory Group LLC lifted its position in shares of Alphabet by 12.2% in the fourth quarter. Private Advisory Group LLC now owns 24,717 shares of the information services provider's stock valued at $7,736,000 after acquiring an additional 2,678 shares in the last quarter. Finally, AE Wealth Management LLC lifted its position in shares of Alphabet by 8.5% in the third quarter. AE Wealth Management LLC now owns 924,927 shares of the information services provider's stock valued at $224,850,000 after acquiring an additional 72,235 shares in the last quarter. Hedge funds and other institutional investors own 40.03% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on GOOGL. Guggenheim restated a "buy" rating and issued a $450.00 price objective (up from $375.00) on shares of Alphabet in a research report on Thursday, April 30th. Oppenheimer upped their price objective on Alphabet from $425.00 to $445.00 and gave the company an "outperform" rating in a research report on Friday, May 15th. Robert W. Baird upped their price objective on Alphabet from $380.00 to $400.00 and gave the company an "outperform" rating in a research report on Thursday, April 30th. Weiss Ratings restated a "buy (b)" rating on shares of Alphabet in a research report on Monday, April 20th. Finally, The Goldman Sachs Group upped their price objective on Alphabet from $400.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $413.13.

Insider Activity

In other Alphabet news, CAO Amie Thuener O'toole sold 617 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $289.63, for a total transaction of $178,701.71. Following the completion of the sale, the chief accounting officer owned 10,093 shares in the company, valued at $2,923,235.59. This trade represents a 5.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frances Arnold sold 102 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $381.00, for a total value of $38,862.00. Following the sale, the director owned 18,721 shares of the company's stock, valued at approximately $7,132,701. This trade represents a 0.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 193,016 shares of company stock worth $17,282,549 over the last quarter. Corporate insiders own 11.61% of the company's stock.

Alphabet Price Performance

GOOGL stock opened at $364.26 on Wednesday. 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 1 year low of $162.00 and a 1 year high of $408.61. The firm has a market cap of $4.41 trillion, a P/E ratio of 27.78, a price-to-earnings-growth ratio of 1.56 and a beta of 1.23. The stock has a 50-day simple moving average of $356.15 and a 200-day simple moving average of $329.17.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its earnings results on Wednesday, April 29th. The information services provider reported $5.11 earnings per share (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 business had revenue of $109.90 billion during the quarter, compared to analyst estimates of $106.98 billion. On average, equities analysts predict that Alphabet Inc. will post 14.29 earnings per share for the current fiscal year.

Alphabet Increases Dividend

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

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s Gemini app reportedly doubled its monthly users to 900 million, reinforcing the company’s momentum in consumer AI and supporting the case that its AI investments are translating into real usage.
• Positive Sentiment: Wall Street commentary remains constructive, with one report citing TD Cowen’s view that Alphabet could rise further by 2027, reflecting ongoing confidence in its earnings power and AI/cloud growth.
• Positive Sentiment: Alphabet was highlighted as a long-term value-and-growth story, with its search cash engine funding a growing cloud and AI franchise at what some analysts view as an attractive valuation.
• Positive Sentiment: Alphabet’s recent convertible preferred offering and related financing coverage suggest it still has strong access to capital as it expands AI infrastructure, which can help fund growth initiatives.
• Neutral Sentiment: Alphabet’s large AI spending plans remain a key debate, with some analysts warning that rising capex could weigh on near-term profitability even if it supports future growth.
• Neutral Sentiment: Short-interest data showed no meaningful short position change, so it does not appear to be a major driver of the stock move.
• Neutral Sentiment: Reports linking Alphabet to major AI compute deals and supplier arrangements, including Google Cloud usage by other tech firms, reinforce its strategic importance in AI but are not directly tied to near-term earnings.
• Negative Sentiment: Several articles focus on pressure from Alphabet’s aggressive AI infrastructure spending, including concerns that capex could compress margins and make investors more cautious about the stock’s high expectations.
• Negative Sentiment: One report specifically warned that Alphabet’s net profit margin deserves closer scrutiny after the stock’s strong run, suggesting investors may be increasingly sensitive to any slowdown in profitability.

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.

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