Provident Trust Co. Sells 587,394 Shares of Alphabet Inc. $GOOGL

Key Points

• Provident Trust Co. reduced its Alphabet stake by 21.1%, selling 587,394 shares in the second quarter. It still held 2.20 million shares worth approximately $786 million, representing 16.5% of its portfolio.
• Alphabet reported a strong quarter, with $9.11 in earnings per share and $119.8 billion in revenue, exceeding analyst estimates. Analysts maintain a consensus “Buy” rating with an average price target of $420.19.
• Alphabet’s outlook is supported by AI, cloud growth, nuclear-power procurement and its Mechanize acquisition, though investors face potential risks from heavy AI infrastructure spending, electricity demand and an ongoing securities-law investigation.

Provident Trust Co. cut its position in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 21.1% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,199,460 shares of the information services provider's stock after selling 587,394 shares during the quarter. Alphabet accounts for about 16.5% of Provident Trust Co.'s portfolio, making the stock its largest holding. Provident Trust Co.'s holdings in Alphabet were worth $786,021,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. Norges Bank acquired a new position in Alphabet during the fourth quarter valued at approximately $30,534,239,000. Cardano Risk Management B.V. lifted its stake in Alphabet by 855.3% during the fourth quarter. Cardano Risk Management B.V. now owns 14,525,280 shares of the information services provider's stock worth $4,546,413,000 after purchasing an additional 13,004,828 shares during the last quarter. Capital World Investors boosted its holdings in shares of Alphabet by 28.0% in the 3rd quarter. Capital World Investors now owns 53,107,572 shares of the information services provider's stock valued at $12,910,542,000 after purchasing an additional 11,605,785 shares in the last quarter. Diamant Asset Management Inc. boosted its holdings in shares of Alphabet by 28,950.0% in 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 purchasing an additional 9,259,940 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Alphabet by 90.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 17,040,373 shares of the information services provider's stock valued at $4,900,078,000 after purchasing an additional 8,112,680 shares during the last quarter. Institutional investors own 40.03% of the company's stock.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google agreed to secure nuclear power for 22 years, reportedly locking in roughly half of a plant’s output through 2049. The deal could provide more predictable electricity costs and reliable power for energy-intensive AI data centers, strengthening Alphabet’s infrastructure position. Alphabet Jumps 2.5% After Locking In 22 Years of Nuclear Power
• Positive Sentiment: Google completed its acquisition of AI startup Mechanize in a deal reportedly valued at more than $1.5 billion. Mechanize’s former CEO and other employees are joining Google, potentially adding talent focused on AI agents and automation. Google just completed its $1.5 billion-plus deal for AI startup Mechanize
• Positive Sentiment: Investor commentary highlighted Alphabet’s strong AI and cloud outlook. Google Cloud is reportedly growing 82% year over year, while Alphabet’s Gemini technology is expanding into professional video-editing software, supporting the case that AI can broaden enterprise revenue beyond search advertising. Microsoft Vs. Alphabet: The Enterprise Fight No One Saw Coming
• Positive Sentiment: Recent coverage continues to present Alphabet as attractively valued relative to its growth prospects. The company’s latest reported quarter exceeded expectations, with earnings of $9.11 per share versus a $2.89 consensus estimate and revenue of $119.8 billion versus $117.07 billion expected.
• Neutral Sentiment: Alphabet’s inclusion among major AI and cloud beneficiaries, along with Berkshire Hathaway’s reported position in the company, may support investor interest but does not represent a new operating catalyst. Berkshire Hathaway Has a New Top Holding, and It Dominates Its Market
• Negative Sentiment: A law firm said it is continuing an investigation into possible federal securities-law violations involving Alphabet. The announcement does not establish wrongdoing, but it introduces a potential legal and reputational overhang. Securities Fraud Investigation Into Alphabet Continues
• Negative Sentiment: Alphabet faces scrutiny over the scale of AI infrastructure spending, potential financing pressure across the AI industry, and electricity-demand concerns related to new data centers. Finland opposition parties have warned that Google’s expansion could strain local power supplies and raise energy costs. Finland Risks Strained Power Supply After Google AI Deal

Insider Activity at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total value of $2,232,808.20. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Frances Arnold sold 82 shares of the company's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $337.71, for a total value of $27,692.22. Following the completion of the sale, the director owned 18,995 shares in the company, valued at $6,414,801.45. This trade represents a 0.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 451,925 shares of company stock worth $12,371,544 over the last three months. Company insiders own 11.61% of the company's stock.

Analysts Set New Price Targets

GOOGL has been the subject of a number of research analyst reports. Rosenblatt Securities reissued a "buy" rating and set a $410.00 price target on shares of Alphabet in a report on Thursday, September 3rd. KeyCorp raised their price objective on Alphabet from $425.00 to $445.00 and gave the company an "overweight" rating in a research note on Friday, July 10th. Truist Financial set a $420.00 target price on Alphabet and gave the company a "buy" rating in a research report on Thursday, July 23rd. Citizens Jmp reissued a "market outperform" rating and set a $515.00 target price on shares of Alphabet in a research note on Wednesday, July 22nd. Finally, Freedom Capital raised shares of Alphabet from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. Five investment analysts have rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $420.19.

Alphabet Stock Up 1.8%

NASDAQ:GOOGL opened at $338.50 on Friday. Alphabet Inc. has a one year low of $235.84 and a one year high of $408.61. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.72 and a quick ratio of 2.64. The company has a market cap of $4.14 trillion, a PE ratio of 17.00, a P/E/G ratio of 0.98 and a beta of 1.22. The firm's 50 day simple moving average is $346.75 and its 200 day simple moving average is $343.66.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $6.22. The firm had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. On average, research analysts anticipate that Alphabet Inc. will post 20.52 earnings per share for the current year.

Alphabet Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Friday, September 4th. Alphabet's dividend payout ratio is presently 4.42%.

About Alphabet

Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.

Alphabet's largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.

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