Main Street Research LLC Increases Stock Holdings in Alphabet Inc. $GOOGL

Key Points

• Main Street Research LLC increased its Alphabet stake by 4.8% in the first quarter, buying 14,242 additional shares and bringing its total to 311,786 shares valued at about $89.7 million.
• Alphabet reported strong quarterly results, with EPS of $5.11 beating estimates by $2.47 and revenue of $109.9 billion topping expectations. The company also lifted its quarterly dividend to $0.22 from $0.21.
• Despite bullish analyst sentiment and multiple raised price targets, Alphabet faces some near-term overhangs, including insider selling and fresh concerns about AI execution and regulatory pressure in the EU and elsewhere.

Main Street Research LLC increased its stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 4.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 311,786 shares of the information services provider's stock after buying an additional 14,242 shares during the quarter. Alphabet makes up 5.2% of Main Street Research LLC's holdings, making the stock its 3rd biggest position. Main Street Research LLC's holdings in Alphabet were worth $89,657,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new position in shares of Alphabet in the 4th quarter valued at about $32,000. EMC Capital Management acquired a new position in shares of Alphabet during the 4th quarter worth about $33,000. PMV Capital Advisers LLC bought a new stake in shares of Alphabet in the 4th quarter valued at about $38,000. IFC & Insurance Marketing Inc. bought a new stake in shares of Alphabet in the 4th quarter valued at about $38,000. Finally, Bard Associates Inc. acquired a new stake in Alphabet in the 4th quarter valued at about $52,000. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Alphabet Price Performance

NASDAQ:GOOGL opened at $346.77 on Friday. Alphabet Inc. has a 52 week low of $183.71 and a 52 week high of $408.61. The firm has a market cap of $4.20 trillion, a price-to-earnings ratio of 26.45, a P/E/G ratio of 1.45 and a beta of 1.24. The firm's 50-day simple moving average is $368.89 and its 200 day simple moving average is $337.97. 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 (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.98 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. As a group, sell-side analysts predict that Alphabet Inc. will post 14.33 earnings per share for the current year.

Alphabet Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were given a $0.22 dividend. The ex-dividend date was Monday, June 8th. This is a positive change from Alphabet's previous quarterly dividend of $0.21. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.3%. Alphabet's dividend payout ratio (DPR) is presently 6.71%.

Insider Buying and Selling

In related news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the business's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $23.75, for a total value of $2,077,531.25. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider John Kent Walker sold 8,998 shares of the stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $349.29, for a total value of $3,142,911.42. Following the sale, the insider directly owned 75,290 shares in the company, valued at $26,298,044.10. This represents a 10.68% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 159,415 shares of company stock valued at $7,672,279 in the last quarter. Corporate insiders own 11.61% of the company's stock.

Analyst Ratings Changes

GOOGL has been the topic of a number of recent analyst reports. Wall Street Zen raised Alphabet from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. CICC Research lifted their target price on Alphabet from $388.00 to $407.91 and gave the stock an "outperform" rating in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Alphabet in a report on Tuesday, April 28th. Guggenheim restated a "buy" rating and issued a $450.00 price target (up from $375.00) on shares of Alphabet in a research note on Thursday, April 30th. Finally, Loop Capital raised their price target on Alphabet from $355.00 to $490.00 and gave the company a "buy" rating in a report on Friday, May 15th. Three investment analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Alphabet has an average rating of "Moderate Buy" and an average price target of $414.11.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Wall Street remains broadly bullish on Alphabet, with multiple reports citing strong cloud growth, AI-driven momentum in Search and YouTube, and price targets still above current trading levels. Article Title
• Positive Sentiment: Analysts say Alphabet could post a strong Q2, helped by Google Cloud strength and the value of its Anthropic stake, which may support upside if earnings beat expectations. Article Title
• Neutral Sentiment: Investors are also positioning for Alphabet’s upcoming earnings report, with options traders expecting a sizable move, indicating that the stock may stay volatile into the release. Article Title
• Negative Sentiment: Bloomberg-reported delays to Gemini 3.5 Pro have sparked fears that Google is lagging in AI, with concerns that the model’s coding performance fell short of internal goals. Article Title
• Negative Sentiment: Alphabet is facing added regulatory pressure after the EU ordered it to open Android and search data to rival AI companies, and a San Francisco order to remove “nudify” apps from app stores adds to the broader legal overhang. Article Title
• Negative Sentiment: Securities-fraud investigation headlines are creating an additional near-term overhang, even though these are still allegations and not a proven finding of wrongdoing. Article Title

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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