Longitude Cayman Ltd. Sells 2,100 Shares of Alphabet Inc. $GOOGL

Key Points

• Longitude Cayman Ltd. cut its Alphabet stake by 11.9% in the second quarter, selling 2,100 shares and retaining 15,600 shares valued at approximately $5.6 million. Institutional investors collectively own 40.03% of Alphabet.
• Alphabet reported strong quarterly results, with $9.11 in earnings per share and $119.8 billion in revenue, exceeding analyst expectations. The company also declared a quarterly dividend of $0.22 per share.
• Analysts remain broadly bullish, assigning Alphabet an average “Buy” rating and a consensus price target of $420.19 versus its reported share price of $338.46, though concerns persist about rising AI infrastructure spending and potential pressure on profitability.

Longitude Cayman Ltd. reduced its position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 11.9% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 15,600 shares of the information services provider's stock after selling 2,100 shares during the period. Alphabet makes up approximately 1.8% of Longitude Cayman Ltd.'s investment portfolio, making the stock its 21st biggest position. Longitude Cayman Ltd.'s holdings in Alphabet were worth $5,575,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of Alphabet by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider's stock worth $165,567,398,000 after buying an additional 12,531,695 shares during the last quarter. State Street Corp grew its position in Alphabet by 1.8% in the second quarter. State Street Corp now owns 229,954,269 shares of the information services provider's stock valued at $40,524,841,000 after acquiring an additional 4,008,374 shares during the last quarter. Geode Capital Management LLC grew its position in Alphabet by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 146,193,037 shares of the information services provider's stock valued at $45,625,595,000 after acquiring an additional 2,666,676 shares during the last quarter. Norges Bank acquired a new position in Alphabet during the fourth quarter worth about $30,534,239,000. Finally, Bank of America Corp DE raised its stake in Alphabet by 4.9% during the fourth quarter. Bank of America Corp DE now owns 69,108,183 shares of the information services provider's stock worth $21,630,861,000 after acquiring an additional 3,218,852 shares in the last quarter. 40.03% of the stock is currently owned by institutional investors.

Alphabet Price Performance

Shares of NASDAQ GOOGL opened at $338.46 on Tuesday. The company's 50 day moving average price is $348.72 and its 200-day moving average price is $343.12. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. Alphabet Inc. has a 52-week low of $231.90 and a 52-week high of $408.61. The company has a market capitalization of $4.14 trillion, a P/E ratio of 17.00, a price-to-earnings-growth ratio of 0.98 and a beta of 1.22.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 EPS 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 business had revenue of $119.80 billion for the quarter, compared to analysts' expectations of $117.07 billion. Equities analysts forecast that Alphabet Inc. will post 20.5 earnings per share for the current year.

Alphabet Dividend Announcement

The business also recently announced 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 is Friday, September 4th. Alphabet's payout ratio is presently 4.42%.

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.

Analysts Set New Price Targets

A number of research firms recently issued reports on GOOGL. Roth Capital reiterated a "buy" rating and set a $440.00 price objective (up from $435.00) on shares of Alphabet in a research report on Thursday, July 23rd. Rosenblatt Securities restated a "buy" rating and issued a $410.00 target price on shares of Alphabet in a research report on Thursday, September 3rd. Wedbush reaffirmed an "outperform" rating and set a $445.00 target price on shares of Alphabet in a research note on Thursday, July 23rd. Truist Financial set a $420.00 price target on shares of Alphabet and gave the stock a "buy" rating in a report on Thursday, July 23rd. Finally, New Street Research increased their price target on Alphabet from $450.00 to $455.00 and gave the company a "buy" rating in a research note on Friday, June 5th. Five 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 data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $420.19.

Insider Activity at Alphabet

In related news, Director John L. Hennessy sold 1,050 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $368.63, for a total value of $387,061.50. Following the transaction, the director directly owned 1,481 shares in the company, valued at $545,941.03. This trade represents a 41.49% decrease in their position. The sale 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 196,931 shares of Alphabet stock in a transaction on Monday, July 27th. The shares were sold at an average price of $19.46, for a total transaction of $3,832,277.26. The disclosure for this sale is available in the SEC filing. Insiders sold 451,925 shares of company stock valued at $12,371,544 in the last ninety days. Insiders own 11.61% of the company's stock.

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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