Mondrian Investment Partners LTD Sells 244,864 Shares of Alphabet Inc. $GOOGL

Key Points

• Mondrian Investment Partners reduced its Alphabet stake by 45.6% in the third quarter, selling 244,864 shares and retaining 292,349 shares valued at approximately $100.6 million.
• Alphabet’s latest quarter missed earnings expectations, with adjusted EPS of $2.12 versus roughly $3.02 expected and revenue of $127.6 billion. Heavy AI infrastructure spending also left free cash flow negative, raising concerns about the returns on capital investments.
• Despite the results and several analyst target-price cuts, Wall Street remains broadly bullish, with Alphabet holding an overall “Buy” rating and an average target price of $410.46; Google Cloud growth and a $561 billion backlog support the positive outlook.

Mondrian Investment Partners LTD trimmed its position in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 45.6% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 292,349 shares of the information services provider's stock after selling 244,864 shares during the period. Alphabet accounts for 2.2% of Mondrian Investment Partners LTD's portfolio, making the stock its 16th biggest position. Mondrian Investment Partners LTD's holdings in Alphabet were worth $100,591,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in the company. State Street Corp increased its stake in shares of Alphabet by 5.6% in the 2nd quarter. State Street Corp now owns 238,977,259 shares of the information services provider's stock worth $85,403,303,000 after acquiring an additional 12,718,127 shares in the last quarter. Diamant Asset Management Inc. lifted its position in Alphabet by 28,950.0% during the 1st quarter. Diamant Asset Management Inc. now owns 9,291,926 shares of the information services provider's stock valued at $2,671,986,000 after acquiring an additional 9,259,940 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Alphabet by 90.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 17,040,373 shares of the information services provider's stock worth $4,900,078,000 after acquiring an additional 8,112,680 shares in the last quarter. Amundi boosted its stake in Alphabet by 12.7% during the first quarter. Amundi now owns 31,745,979 shares of the information services provider's stock worth $9,128,850,000 after acquiring an additional 3,574,810 shares in the last quarter. Finally, Jupiter Topco LLC bought a new stake in Alphabet during the second quarter worth about $1,058,385,000. Institutional investors own 40.03% of the company's stock.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud revenue more than doubled year over year to approximately $30.7 billion, while its backlog reached $561 billion. The results support Alphabet’s position as a major beneficiary of enterprise AI demand. Alphabet's Cloud Business Just Doubled
• Positive Sentiment: Several analysts remain constructive after the selloff. Guggenheim and Needham reaffirmed “buy” ratings with $450 targets, while Citigroup and Wells Fargo retained bullish ratings and projected substantial upside despite lowering their targets.
• Positive Sentiment: Alphabet’s AI ecosystem could gain from rising demand for cloud capacity and specialized chips. Waymo is also expanding internationally through a partnership with Toyota, although the business remains small relative to Alphabet’s core operations. Waymo taps Toyota to supply robotaxis
• Neutral Sentiment: Multiple securities law firms publicized class-action lawsuits and lead-plaintiff deadlines tied to alleged disclosures about Alphabet’s Gemini AI development. These notices add headline risk, but their direct financial impact remains uncertain.
• Negative Sentiment: Alphabet reported adjusted earnings of $2.12 per share, below consensus near $2.94-$3.02, while revenue of $127.6 billion also missed expectations. Search and other revenue grew about 12% to roughly $63 billion, but fell short of forecasts, reinforcing fears that AI-generated answers and “AI mode” searches may monetize less effectively than traditional Search.
• Negative Sentiment: AI infrastructure spending caused free cash flow to remain negative by roughly $9.1 billion for a second consecutive quarter. Investors are questioning whether the enormous capital outlays will produce adequate returns and whether Alphabet may need additional debt or equity financing.
• Negative Sentiment: An unrealized loss on Alphabet’s SpaceX investment reduced quarterly earnings by approximately $0.55 per share, while an EU antitrust fine further pressured results. Analysts including RBC, Wells Fargo, Citigroup, Wedbush, KeyCorp and Cantor Fitzgerald lowered price targets, even though most maintained positive ratings.

Insiders Place Their Bets

In related news, Director Frances Arnold sold 83 shares of the company's stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $340.45, for a total value of $28,257.35. Following the completion of the transaction, the director owned 19,076 shares of the company's stock, valued at approximately $6,494,424.20. This represents a 0.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Over the last ninety days, insiders have sold 247 shares of company stock valued at $79,238. Corporate insiders own 11.61% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on GOOGL. Susquehanna decreased their target price on shares of Alphabet from $460.00 to $400.00 and set a "positive" rating for the company in a research note on Thursday. Morgan Stanley reissued an "overweight" rating and issued a $375.00 price target (down from $400.00) on shares of Alphabet in a research report on Thursday. Cantor Fitzgerald cut their price target on Alphabet from $420.00 to $350.00 and set an "overweight" rating on the stock in a research note on Thursday. Truist Financial cut their price target on Alphabet from $420.00 to $410.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $385.00 price objective on shares of Alphabet in a research report on Thursday. Five investment analysts have rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $410.46.

Alphabet Price Performance

Shares of NASDAQ:GOOGL opened at $279.84 on Friday. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.79 and a quick ratio of 2.64. Alphabet Inc. has a 1-year low of $270.70 and a 1-year high of $408.61. The company has a market capitalization of $3.42 trillion, a P/E ratio of 14.61, a P/E/G ratio of 0.82 and a beta of 1.21. The firm's 50 day simple moving average is $339.07 and its two-hundred day simple moving average is $340.17.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The information services provider reported $2.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.02 by ($0.90). The firm had revenue of $127.58 billion during the quarter, compared to analysts' expectations of $127.96 billion. Alphabet had a return on equity of 43.33% and a net margin of 50.03%. Research analysts expect that Alphabet Inc. will post 20.05 EPS for the current fiscal year.

About Alphabet

Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.

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