Merrithew & Thorsten Inc Takes Position in Alphabet Inc. $GOOG

Key Points

• Merrithew & Thorsten Inc initiated a new position in Alphabet during the fourth quarter, buying 5,180 shares worth about $1.625 million. The stake represents roughly 1.7% of its portfolio and Alphabet is now its 10th-largest holding.
• Alphabet reported a strong quarter, with EPS of $5.11 versus $2.68 expected and revenue of $109.9 billion, up 21.8% from a year earlier. The company also maintained strong profitability, with a net margin of 37.92% and return on equity of 38.99%.
• Alphabet raised its quarterly dividend to $0.22 per share from $0.21, equal to an annualized payout of $0.88 and a yield of about 0.2%. Analysts remain mostly bullish, with several price target hikes and a consensus rating of Buy.

Merrithew & Thorsten Inc purchased a new stake in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 5,180 shares of the information services provider's stock, valued at approximately $1,625,000. Alphabet accounts for approximately 1.7% of Merrithew & Thorsten Inc's holdings, making the stock its 10th largest holding.

Several other institutional investors have also added to or reduced their stakes in the company. Sound Financial Strategies Group LLC boosted its position in Alphabet by 12,325.0% during the 4th quarter. Sound Financial Strategies Group LLC now owns 1,491 shares of the information services provider's stock valued at $468,000 after buying an additional 1,479 shares during the period. Wesbanco Bank Inc. boosted its position in Alphabet by 8.8% during the 4th quarter. Wesbanco Bank Inc. now owns 83,263 shares of the information services provider's stock valued at $26,128,000 after buying an additional 6,707 shares during the period. Strategic Wealth Advisors LLC purchased a new stake in Alphabet during the 4th quarter valued at $204,000. GRIMES & Co WEALTH MANAGEMENT LLC boosted its position in Alphabet by 1.4% during the 4th quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 88,815 shares of the information services provider's stock valued at $27,870,000 after buying an additional 1,211 shares during the period. Finally, Strengthening Families & Communities LLC boosted its position in Alphabet by 4.6% during the 4th quarter. Strengthening Families & Communities LLC now owns 29,194 shares of the information services provider's stock valued at $9,161,000 after buying an additional 1,278 shares during the period. Hedge funds and other institutional investors own 27.26% of the company's stock.

Alphabet Stock Performance

NASDAQ:GOOG opened at $393.32 on Monday. The company has a 50-day moving average price of $327.44 and a 200-day moving average price of $317.31. Alphabet Inc. has a 12 month low of $163.33 and a 12 month high of $399.93. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16. The stock has a market cap of $4.77 trillion, a price-to-earnings ratio of 30.00, a P/E/G ratio of 1.68 and a beta of 1.25.

Alphabet (NASDAQ:GOOG - Get Free Report) last posted its earnings results on Thursday, April 30th. The information services provider reported $5.11 EPS for the quarter, topping the consensus estimate of $2.68 by $2.43. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The firm had revenue of $109.90 billion during the quarter, compared to analysts' expectations of $106.96 billion. During the same period last year, the company posted $2.81 EPS. The company's quarterly revenue was up 21.8% compared to the same quarter last year. Equities analysts predict that Alphabet Inc. will post 14.29 EPS for the current year.

Alphabet Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be given a $0.22 dividend. The ex-dividend date of this dividend is Monday, June 8th. This represents a $0.88 annualized dividend and a dividend yield of 0.2%. This is a positive change from Alphabet's previous quarterly dividend of $0.21. Alphabet's dividend payout ratio is 6.41%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Bank of America and other analysts are expecting major Gemini AI announcements at Google I/O, which could reinforce Alphabet’s leadership in AI and support the stock. BofA Sends Blunt Message for Alphabet Investors Ahead of Google I/O
• Positive Sentiment: Oppenheimer raised its price target on Alphabet, and Erste Group also lifted earnings estimates, signaling stronger profit expectations ahead of Google I/O. Alphabet had its price target raised by Oppenheimer Holdings, Inc.
• Positive Sentiment: Several investors and funds, including Goldman Sachs and Egerton Capital, disclosed larger Alphabet stakes, suggesting continued institutional confidence. Fund Update: GOLDMAN SACHS GROUP INC Just Disclosed New Holdings
• Positive Sentiment: Reports that Google’s Gemini Flash model is quietly gaining AI customers and that Alphabet is expanding AI infrastructure point to improving enterprise demand for its AI products. Google has been quietly gaining AI customers, even before big releases next week
• Positive Sentiment: Alphabet completed a record 576.5 billion yen bond offering to fund AI capex, showing it still has strong access to capital for its infrastructure buildout. Alphabet completes record-breaking yen bond issuance
• Neutral Sentiment: News that Google is in talks with SpaceX to launch data centers into space is intriguing, but it is still early-stage and speculative. Google in Talks with SpaceX to Launch Data Centers into Space
• Neutral Sentiment: Isomorphic Labs raised $2.1 billion to use AI for drug discovery, which highlights Alphabet’s broader AI ecosystem, but the direct stock impact is limited for now. Isomorphic Labs Raises $2.1 Billion to End Disease With AI
• Negative Sentiment: Bill Ackman’s Pershing Square sharply cut its GOOG and GOOGL positions, adding to concern that some large investors may be taking profits after the run-up. Fund Update: Bill Ackman's Pershing Square Capital Management, L.P. Just Disclosed New Holdings
• Negative Sentiment: Some commentary says Alphabet’s heavy AI and cloud spending is pressuring free cash flow, raising questions about near-term margins and valuation. 6.7% AA2 Bond Yield From Alphabet, But There Is a Catch

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Raymond James Financial reissued a "strong-buy" rating and set a $425.00 price target on shares of Alphabet in a research report on Thursday, April 30th. Truist Financial set a $385.00 price target on shares of Alphabet in a research report on Wednesday, April 22nd. Oppenheimer increased their price target on shares of Alphabet from $425.00 to $445.00 and gave the company an "outperform" rating in a research report on Friday. Phillip Securities cut shares of Alphabet from a "strong-buy" rating to a "moderate buy" rating in a research report on Wednesday, April 15th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $370.00 price target on shares of Alphabet in a research report on Tuesday, January 20th. Six equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $363.40.

Insider Transactions at Alphabet

In related news, insider John Kent Walker sold 8,993 shares of the stock in a transaction dated Friday, March 27th. The shares were sold at an average price of $275.89, for a total value of $2,481,078.77. Following the completion of the transaction, the insider directly owned 51,808 shares in the company, valued at $14,293,309.12. This trade represents a 14.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Amie Thuener O'toole sold 617 shares of the stock in a transaction dated 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 transaction, the chief accounting officer owned 10,093 shares of the company's stock, valued at approximately $2,923,235.59. The trade was a 5.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 157,953 shares of company stock worth $47,767,818. 12.99% of the stock is owned by corporate insiders.

Alphabet Company Profile

Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.

Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.

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