Olstein Capital Management L.P. Reduces Stock Position in Alphabet Inc. $GOOG

Key Points

• Olstein Capital Management cut its Alphabet stake by 48.3% in the fourth quarter, selling 7,000 shares and leaving it with 7,500 shares worth about $2.35 million.
• Alphabet reported a strong quarter, with earnings of $5.11 per share versus expectations of $2.68 and revenue of $109.9 billion, up 21.8% year over year.
• The company raised its quarterly dividend to $0.22 per share from $0.21, while analysts remain generally bullish with a consensus rating of “Buy” and an average target price of $363.40.

Olstein Capital Management L.P. lowered its holdings in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) by 48.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 7,500 shares of the information services provider's stock after selling 7,000 shares during the quarter. Olstein Capital Management L.P.'s holdings in Alphabet were worth $2,354,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of the business. Tradewinds LLC. lifted its holdings in shares of Alphabet by 2,134.8% in the 3rd quarter. Tradewinds LLC. now owns 45,098 shares of the information services provider's stock worth $10,984,000 after buying an additional 43,080 shares during the period. Kathmere Capital Management LLC lifted its holdings in shares of Alphabet by 8.5% in the 4th quarter. Kathmere Capital Management LLC now owns 29,896 shares of the information services provider's stock worth $9,381,000 after buying an additional 2,341 shares during the period. Atlantic Union Bankshares Corp lifted its holdings in shares of Alphabet by 31.3% in the 3rd quarter. Atlantic Union Bankshares Corp now owns 354,529 shares of the information services provider's stock worth $86,345,000 after buying an additional 84,553 shares during the period. Baltimore Washington Financial Advisors Inc. lifted its holdings in shares of Alphabet by 0.9% in the 3rd quarter. Baltimore Washington Financial Advisors Inc. now owns 221,391 shares of the information services provider's stock worth $53,920,000 after buying an additional 2,009 shares during the period. Finally, Newbridge Financial Services Group Inc. lifted its holdings in shares of Alphabet by 7.5% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 60,739 shares of the information services provider's stock worth $19,060,000 after buying an additional 4,239 shares during the period. Hedge funds and other institutional investors own 27.26% of the company's stock.

Alphabet News Summary

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

Alphabet Trading Down 1.0%

Shares of NASDAQ:GOOG opened at $393.32 on Friday. The business's 50-day moving average is $327.44 and its 200 day moving average is $316.98. Alphabet Inc. has a 1 year low of $163.33 and a 1 year high of $399.93. The firm has a market capitalization of $4.77 trillion, a P/E ratio of 30.00, a P/E/G ratio of 1.68 and a beta of 1.25. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92.

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

Alphabet Increases Dividend

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

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on GOOG shares. KeyCorp set a $370.00 target price on Alphabet in a report on Thursday, February 5th. DZ Bank upgraded Alphabet to a "strong-buy" rating in a report on Monday, February 16th. Needham & Company LLC set a $400.00 target price on Alphabet and gave the stock a "buy" rating in a report on Friday, March 13th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $345.00 target price on shares of Alphabet in a report on Thursday, February 5th. Finally, Cantor Fitzgerald reiterated a "neutral" rating on shares of Alphabet in a report on Tuesday, January 20th. Six analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, Alphabet currently has an average rating of "Buy" and a consensus target price of $363.40.

Insider Activity at Alphabet

In related news, Director John L. Hennessy sold 1,050 shares of the company's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $331.65, for a total transaction of $348,232.50. Following the transaction, the director directly owned 3,581 shares of the company's stock, valued at $1,187,638.65. This represents a 22.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider John Kent Walker sold 47,574 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $301.45, for a total value of $14,341,182.30. Following the transaction, the insider directly owned 13,227 shares in the company, valued at $3,987,279.15. This represents a 78.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 157,953 shares of company stock worth $47,767,818 over the last ninety days. Corporate insiders own 12.99% of the company's stock.

Alphabet 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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