Purpose Unlimited Inc. Invests $83.92 Million in Alphabet Inc. $GOOGL

Key Points

• Purpose Unlimited Inc. disclosed a new fourth-quarter stake in Alphabet, buying 268,123 shares valued at about $83.9 million. The position now makes Alphabet roughly 3.8% of its portfolio and its fifth-largest holding.
• Several analysts remain bullish on Alphabet, with price targets recently raised as high as $450 and the stock carrying a consensus rating of “Moderate Buy”. MarketBeat data shows 47 Buy ratings and an average target price of $413.13.
• Alphabet continues to post strong fundamentals, reporting $5.11 EPS and $109.9 billion in quarterly revenue, both above expectations, while also raising its quarterly dividend to $0.22 per share. However, the article notes investor concerns around heavy AI spending, leadership departures in AI, and Waymo execution risk.

Purpose Unlimited Inc. acquired a new position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 268,123 shares of the information services provider's stock, valued at approximately $83,925,000. Alphabet comprises approximately 3.8% of Purpose Unlimited Inc.'s investment portfolio, making the stock its 5th biggest position.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Brighton Jones LLC raised its stake in shares of Alphabet by 3.9% in the 4th quarter. Brighton Jones LLC now owns 110,330 shares of the information services provider's stock valued at $20,886,000 after acquiring an additional 4,110 shares during the period. Revolve Wealth Partners LLC boosted its position in shares of Alphabet by 3.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 14,930 shares of the information services provider's stock worth $2,826,000 after purchasing an additional 506 shares during the period. Matrix Asset Advisors Inc. NY boosted its position in shares of Alphabet by 17.6% during the 2nd quarter. Matrix Asset Advisors Inc. NY now owns 3,888 shares of the information services provider's stock worth $685,000 after purchasing an additional 581 shares during the period. Sequoia Financial Advisors LLC increased its holdings in Alphabet by 11.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 485,486 shares of the information services provider's stock valued at $85,557,000 after purchasing an additional 48,805 shares during the last quarter. Finally, United Bank increased its holdings in Alphabet by 6.9% in the 2nd quarter. United Bank now owns 48,204 shares of the information services provider's stock valued at $8,495,000 after purchasing an additional 3,120 shares during the last quarter. 40.03% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Stifel Nicolaus set a $420.00 price target on Alphabet and gave the stock a "buy" rating in a research note on Thursday, April 30th. Evercore lifted their price objective on Alphabet from $400.00 to $420.00 and gave the company an "outperform" rating in a research note on Thursday, April 30th. Wells Fargo & Company reiterated an "overweight" rating and issued a $435.00 price objective (up from $427.00) on shares of Alphabet in a report on Wednesday, May 20th. The Goldman Sachs Group increased their target price on Alphabet from $400.00 to $450.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Finally, Morgan Stanley raised their target price on Alphabet from $330.00 to $375.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Alphabet currently has a consensus rating of "Moderate Buy" and an average target price of $413.13.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet and DeepMind announced a new AI research partnership with film studio A24, including about $75 million of investment, showing continued efforts to commercialize AI in creative tools. Google DeepMind signs AI research deal with film studio A24
• Positive Sentiment: Some analysts remain constructive on Alphabet’s AI spending, arguing that its cloud growth and AI investments could still be monetized over time. Morgan Stanley sees monetization potential in Google AI spending
• Neutral Sentiment: Alphabet’s cloud business continues to grow quickly and remains a key long-term driver, but heavy AI spending is also increasing near-term cost concerns. Is Alphabet the Best "Magnificent Seven" AI Stock?
• Negative Sentiment: Alphabet stock is falling more than the broader market as investors worry about a high-profile AI talent exodus from Google DeepMind and Gemini leadership. Alphabet paces for worst day in a year on AI concerns after high-profile exits
• Negative Sentiment: Reports that Google DeepMind scientist John Jumper left for Anthropic added to fears that Alphabet is losing key AI researchers to competitors. Alphabet Is Now Cheaper Than What Berkshire Paid
• Negative Sentiment: Waymo’s recall of 3,871 robotaxis after a software glitch is another reminder that Alphabet’s autonomy business still faces execution risk. Waymo Just Recalled 3,800 Robotaxis. Is Google's Self-Driving Dream Hitting a Wall?

Insiders Place Their Bets

In related news, Director Frances Arnold sold 102 shares of the company's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $381.00, for a total transaction of $38,862.00. Following the sale, the director directly owned 18,721 shares in the company, valued at approximately $7,132,701. This represents a 0.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Amie Thuener O'toole sold 617 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $289.63, for a total transaction of $178,701.71. Following the completion of the sale, the chief accounting officer directly owned 10,093 shares in the company, valued at approximately $2,923,235.59. This trade represents a 5.76% decrease in their position. 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 ninety days, insiders have sold 160,516 shares of company stock worth $7,344,604. Corporate insiders own 11.61% of the company's stock.

Alphabet Stock Down 5.0%

Alphabet stock opened at $349.68 on Tuesday. Alphabet Inc. has a twelve month low of $162.00 and a twelve month high of $408.61. The stock's fifty day simple moving average is $367.66 and its 200-day simple moving average is $332.31. 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 firm has a market capitalization of $4.24 trillion, a P/E ratio of 26.67, a P/E/G ratio of 1.57 and a beta of 1.23.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.64 by $2.47. The business had revenue of $109.90 billion for the quarter, compared to analysts' expectations of $106.98 billion. Alphabet had a return on equity of 38.99% and a net margin of 37.92%. As a group, equities analysts expect that Alphabet Inc. will post 14.3 earnings per share for the current fiscal year.

Alphabet Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were given a $0.22 dividend. The ex-dividend date of this dividend was Monday, June 8th. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. This is an increase from Alphabet's previous quarterly dividend of $0.21. Alphabet's dividend payout ratio is 6.71%.

Alphabet Profile

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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