Little House Capital LLC Reduces Position in Alphabet Inc. $GOOGL

Key Points

• Little House Capital reduced its Alphabet position by 3.4% in the first quarter, selling 1,733 shares and retaining 48,650 shares valued at approximately $13.99 million. Alphabet remains the fund’s third-largest holding and represents 3.6% of its portfolio.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $419.86; several firms recently raised their targets to between $425 and $485.
• Alphabet reported quarterly EPS of $9.11 and revenue of $119.8 billion, exceeding expectations, while declaring a quarterly dividend of $0.22 per share. However, planned capital spending of up to $205 billion and negative free cash flow are fueling concerns about AI investment returns.

Little House Capital LLC decreased its position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 3.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 48,650 shares of the information services provider's stock after selling 1,733 shares during the period. Alphabet accounts for 3.6% of Little House Capital LLC's investment portfolio, making the stock its 3rd biggest holding. Little House Capital LLC's holdings in Alphabet were worth $13,990,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. NewEdge Wealth LLC raised its position in Alphabet by 11.8% in the 4th quarter. NewEdge Wealth LLC now owns 887,209 shares of the information services provider's stock valued at $277,696,000 after purchasing an additional 93,293 shares during the last quarter. PFG Investments LLC increased its stake in shares of 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 buying an additional 2,269 shares in the last quarter. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new stake in shares of Alphabet in the fourth quarter valued at $28,902,000. Private Advisory Group LLC raised its holdings 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 buying an additional 2,678 shares during the last quarter. Finally, W.G. Shaheen & Associates DBA Whitney & Co raised its holdings in shares of Alphabet by 17.1% in the fourth quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 118,966 shares of the information services provider's stock valued at $37,236,000 after buying an additional 17,415 shares during the last quarter. 40.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have weighed in on GOOGL shares. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Alphabet in a research note on Monday, May 4th. Barclays reissued an "overweight" rating and issued a $425.00 price target (up from $405.00) on shares of Alphabet in a report on Thursday, July 23rd. Bank of America upped their price objective on Alphabet from $370.00 to $430.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. China Renaissance lifted their target price on Alphabet from $400.00 to $485.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Finally, Wedbush reaffirmed an "outperform" rating and set a $445.00 price target on shares of Alphabet in a research note on Thursday, July 23rd. Six investment analysts have rated the stock with a Strong Buy rating, forty-four have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Alphabet presently has a consensus rating of "Buy" and an average target price of $419.86.

Alphabet Stock Up 0.9%

Shares of Alphabet stock opened at $336.71 on Thursday. The business has a fifty day simple moving average of $359.40 and a 200 day simple moving average of $339.14. The stock has a market cap of $4.08 trillion, a PE ratio of 16.91, a price-to-earnings-growth ratio of 0.95 and a beta of 1.24. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. Alphabet Inc. has a 12 month low of $187.82 and a 12 month high of $408.61.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.89 by $6.22. The company had revenue of $119.80 billion during the quarter, compared to analyst estimates of $117.07 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. Research analysts predict that Alphabet Inc. will post 20.15 EPS for the current year.

Alphabet Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Stockholders 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 currently 4.42%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s latest quarter continued to support the long-term growth case: revenue rose 24% to $119.8 billion, Google Cloud growth accelerated to 82%, cloud operating income more than tripled, and its backlog reached $514 billion. Search revenue also grew 17%, easing concerns that AI tools are undermining the core advertising business. Alphabet quarter and valuation analysis
• Positive Sentiment: Investor enthusiasm is being supported by Alphabet’s potential to commercialize its internally developed AI chips, with initial external revenue reportedly expected by year-end. Analysts and value investors remain constructive; KeyCorp maintains an “Overweight” rating and a $445 target, while Phillip Securities upgraded Alphabet to “strong buy.” Alphabet AI silicon opportunity
• Positive Sentiment: Google is expanding its Play Signal age-assurance technology worldwide by the end of 2026, potentially strengthening Android’s safety tools and developer ecosystem. Waymo also began restoring freeway service, a sign of progress after earlier operational restrictions. Google age-assurance technology
• Neutral Sentiment: Analyst estimates were mixed: KeyCorp raised its full-year 2026 EPS forecast substantially but trimmed quarterly and 2027 estimates slightly, while Erste Group lifted its 2027 forecast. This indicates strong near-term expectations but uncertainty about longer-term spending and profitability.
• Negative Sentiment: The main pressure remains Alphabet’s planned $195 billion–$205 billion of 2026 capital spending. Quarterly capital expenditures reached $44.9 billion and free cash flow turned negative, prompting investors to question whether AI infrastructure returns will justify the investment. Alphabet AI spending concerns
• Negative Sentiment: Additional risks include renewed fears that lower-cost AI models could pressure technology valuations, potential European private damages claims following Google’s $1 billion fine, and reports of a DeepMind research-team restructuring. Recent insider and major-shareholder sales are also a modest sentiment headwind, although they do not necessarily signal deteriorating fundamentals. Google European damages risk

Insider Activity

In other news, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $19.46, for a total value of $3,832,277.26. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider John Kent Walker sold 8,998 shares of the company's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $349.29, for a total transaction of $3,142,911.42. Following the completion of the sale, the insider owned 75,290 shares of the company's stock, valued at approximately $26,298,044.10. This represents a 10.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 600,465 shares of company stock valued at $16,228,202 in the last quarter. Company insiders own 11.61% of the company's stock.

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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