PFA Pension Forsikringsaktieselskab Acquires Shares of 3,493,036 Alphabet Inc. $GOOGL

Key Points

• PFA Pension Forsikringsaktieselskab initiated a new stake in Alphabet, buying 3,493,036 shares worth about $1.1 billion. The position makes Alphabet roughly 3.1% of its portfolio and its 5th-largest holding.
• Alphabet’s recent results and guidance-related commentary remain strong: the company reported $5.11 EPS versus $2.64 expected, on revenue of $109.9 billion, while analysts now expect 14.29 EPS for the year. Wall Street has also grown more positive, with several firms raising price targets.
• The company raised its quarterly dividend to $0.22 per share from $0.21, signaling a modest increase in shareholder returns. At the same time, there has been some insider selling, though the article describes these filings as routine.

PFA Pension Forsikringsaktieselskab acquired a new stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 3,493,036 shares of the information services provider's stock, valued at approximately $1,096,289,000. Alphabet makes up approximately 3.1% of PFA Pension Forsikringsaktieselskab's portfolio, making the stock its 5th biggest holding.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in shares of Alphabet by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider's stock valued at $165,567,398,000 after purchasing an additional 12,531,695 shares during the last quarter. State Street Corp boosted its stake 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. Capital World Investors grew its holdings in Alphabet by 28.0% during the 3rd quarter. Capital World Investors now owns 53,107,572 shares of the information services provider's stock worth $12,910,542,000 after acquiring an additional 11,605,785 shares during the period. Capital Research Global Investors grew its holdings in Alphabet by 15.7% during the 3rd quarter. Capital Research Global Investors now owns 50,732,476 shares of the information services provider's stock worth $12,333,076,000 after acquiring an additional 6,874,381 shares during the period. Finally, Invesco Ltd. lifted its stake in shares of Alphabet by 2.3% in the 3rd quarter. Invesco Ltd. now owns 45,186,112 shares of the information services provider's stock valued at $10,984,744,000 after purchasing an additional 1,034,292 shares during the period. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet Stock Up 0.3%

Alphabet stock opened at $388.91 on Thursday. The company's 50 day simple moving average is $334.65 and its 200 day simple moving average is $320.07. Alphabet Inc. has a fifty-two week low of $162.00 and a fifty-two week high of $408.61. The firm has a market capitalization of $4.71 trillion, a price-to-earnings ratio of 29.67, a PEG ratio of 1.66 and a beta of 1.26. 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:GOOGL - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share for the quarter, topping the consensus estimate of $2.64 by $2.47. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business had revenue of $109.90 billion for the quarter, compared to analyst estimates of $106.98 billion. As a group, sell-side analysts anticipate that Alphabet Inc. will post 14.29 EPS for the current year.

Alphabet Increases Dividend

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

Insider Transactions at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of Alphabet stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $23.75, for a total value of $2,077,531.25. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sundar Pichai sold 32,500 shares of Alphabet stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $303.38, for a total transaction of $9,859,850.00. Following the completion of the transaction, the chief executive officer directly owned 1,674,560 shares in the company, valued at approximately $508,028,012.80. The trade was a 1.90% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 226,481 shares of company stock valued at $27,422,061. 11.61% of the stock is currently owned by insiders.

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s Google I/O showcase highlighted a broad AI push across Search, Gemini, Workspace, shopping, coding, and video tools, reinforcing expectations that Google can monetize AI rather than just defend against competitors. Google debuts new AI models, personal AI agents in effort to keep pace with OpenAI and Anthropic
• Positive Sentiment: Google and Blackstone announced a $5 billion joint venture to build AI cloud infrastructure powered by Google’s TPU chips, which could expand demand for Alphabet’s custom silicon and strengthen its enterprise AI ecosystem. Google, Blackstone to create new AI cloud company, WSJ reports
• Positive Sentiment: Wall Street analysts turned more constructive after I/O, with firms including BofA, KeyCorp, Citizens JMP, Needham, and others reiterating or raising targets, signaling confidence that Alphabet’s AI strategy is gaining traction. Alphabet analyst forecasts
• Positive Sentiment: Alphabet said Gemini now has 900 million monthly users and AI Overviews has 2.5 billion monthly users, showing that its AI products are already operating at significant scale. Google kicks off I/O conference with AI upgrades for coders, consumers
• Positive Sentiment: Alphabet also introduced new AI-powered search and shopping features, including agentic tools and a universal cart, which could open additional monetization opportunities. Google's new Universal Cart wants to follow you across the entire internet
• Neutral Sentiment: Insider and shareholder sales were disclosed, including a director sale and a larger shareholder sale, but these appear to be routine filings rather than a clear signal of changing fundamentals. SEC filing
• Negative Sentiment: Ofcom said YouTube and TikTok have not done enough to protect British children from harmful content, adding another layer of regulatory scrutiny for Alphabet’s YouTube business. TikTok, YouTube lag on UK child safety as rivals act, regulator says
• Negative Sentiment: Some investors worry that Google’s AI-heavy search redesign could pressure its core ad model by reducing reliance on the traditional “ten blue links” format. Google Search as you know it is over

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on GOOGL. President Capital increased their price target on Alphabet from $375.00 to $465.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Piper Sandler reissued an "overweight" rating and issued a $425.00 price target (up from $395.00) on shares of Alphabet in a research note on Thursday, April 30th. Argus increased their price target on Alphabet from $365.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, February 6th. CICC Research increased their price target on Alphabet from $388.00 to $407.91 and gave the company an "outperform" rating in a research note on Friday, May 1st. Finally, Oppenheimer increased their price target on Alphabet from $425.00 to $445.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Two analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $412.65.

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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