Rare Wolf Capital LLC Takes Position in Alphabet Inc. $GOOGL

Key Points

• Rare Wolf Capital LLC opened a new position in Alphabet, buying 15,997 shares valued at about $5.0 million. The stake represents 3.1% of the firm’s portfolio and is now its sixth-largest holding.
• Alphabet’s recent business updates were mostly positive, with reports highlighting strong AI/cloud momentum, a growing Google Cloud backlog, and new enterprise wins such as HSBC’s multi-year Google Cloud partnership.
• The company also reported solid financial results and returned more cash to shareholders, posting quarterly EPS of $5.11 versus $2.64 expected and raising its dividend to $0.22 per share from $0.21.

Rare Wolf Capital LLC purchased a new stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 15,997 shares of the information services provider's stock, valued at approximately $5,007,000. Alphabet comprises 3.1% of Rare Wolf Capital LLC's portfolio, making the stock its 6th largest holding.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in GOOGL. Vanguard Group Inc. lifted its holdings in Alphabet by 2.4% in the fourth quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider's stock valued at $165,567,398,000 after buying an additional 12,531,695 shares during the period. State Street Corp lifted its stake in shares of Alphabet by 1.8% in the 2nd quarter. State Street Corp now owns 229,954,269 shares of the information services provider's stock valued at $40,524,841,000 after purchasing an additional 4,008,374 shares during the period. Geode Capital Management LLC boosted its position in shares of Alphabet by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 146,193,037 shares of the information services provider's stock worth $45,625,595,000 after purchasing an additional 2,666,676 shares during the last quarter. Norges Bank acquired a new stake in shares of Alphabet during the fourth quarter worth $30,534,239,000. Finally, Bank of America Corp DE grew its stake in shares of Alphabet by 4.9% during the fourth quarter. Bank of America Corp DE now owns 69,108,183 shares of the information services provider's stock worth $21,630,861,000 after purchasing an additional 3,218,852 shares during the period. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s core AI and cloud story got another boost after reports highlighted strong earnings momentum and a rapidly expanding Google Cloud backlog, reinforcing the view that business demand remains healthy. Alphabet Just Beat Earnings by 94% and Doubled Its Cloud Backlog to $460 Billion
• Positive Sentiment: Berkshire Hathaway disclosed that it nearly tripled its Alphabet stake, a notable vote of confidence from a major value investor that may support sentiment. Warren Buffett Just Tripled Down on the Stock Bill Ackman Is Selling
• Positive Sentiment: HSBC announced a multi-year partnership with Google Cloud to expand AI usage, adding another large enterprise customer to Alphabet’s cloud growth narrative. HSBC partners with Google Cloud to expand AI usage
• Positive Sentiment: Google unveiled new AI-related plans, including an “AI Control Roadmap” to address rogue AI agents, underscoring continued investment and leadership in AI infrastructure and safety. Google Devises Battle Plan to Combat Rogue AI Agents
• Neutral Sentiment: Google’s AI talent war remains a focus after Noam Shazeer, a co-lead on Gemini, reportedly left for OpenAI, which may raise questions about retention but does not change the core business overnight. Google's Gemini co-lead Noam Shazeer to join OpenAI
• Negative Sentiment: Waymo issued a recall of about 3,900 robotaxis after software issues caused vehicles to enter highway construction zones, adding regulatory and execution risk to Alphabet’s self-driving unit. Waymo to recall over 3,800 robotaxis over risk of entering closed construction zones
• Negative Sentiment: A director sold a meaningful block of shares, which can modestly weigh on sentiment even though insider sales are not always a bearish signal. SEC filing for John L. Hennessy sale

Alphabet Price Performance

NASDAQ:GOOGL opened at $368.48 on Friday. Alphabet Inc. has a 12-month low of $162.00 and a 12-month high of $408.61. The firm has a market capitalization of $4.46 trillion, a price-to-earnings ratio of 28.11, a P/E/G ratio of 1.56 and a beta of 1.23. The stock's 50 day moving average price is $366.01 and its two-hundred day moving average price is $331.69. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.16.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its earnings results on Wednesday, April 29th. The information services provider reported $5.11 EPS for the quarter, topping the consensus estimate of $2.64 by $2.47. The company had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.98 billion. Alphabet had a return on equity of 38.99% and a net margin of 37.92%. On average, analysts anticipate that Alphabet Inc. will post 14.3 earnings per share for the current year.

Alphabet Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 0.2%. This is a positive change from Alphabet's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Monday, June 8th. Alphabet's dividend payout ratio (DPR) is presently 6.71%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GOOGL. BMO Capital Markets raised their target price on Alphabet from $410.00 to $435.00 and gave the stock an "outperform" rating in a report on Thursday, April 30th. CICC Research increased their target price on Alphabet from $388.00 to $407.91 and gave the stock an "outperform" rating in a research note on Friday, May 1st. Royal Bank Of Canada set a $425.00 target price on Alphabet and gave the stock an "outperform" rating in a report on Thursday, April 30th. Robert W. Baird lifted their price objective on shares of Alphabet from $380.00 to $400.00 and gave the company an "outperform" rating in a report on Thursday, April 30th. Finally, Cantor Fitzgerald lifted their target price on Alphabet from $395.00 to $465.00 and gave the company an "overweight" rating in a research report on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Alphabet currently has a consensus rating of "Moderate Buy" and a consensus target price of $413.13.

Insider Activity

In other news, CAO Amie Thuener O'toole sold 617 shares of the firm's stock in a transaction dated 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 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 transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Kent Walker sold 8,993 shares of the firm's stock in a transaction dated Friday, March 27th. The stock was sold at an average price of $275.89, for a total transaction of $2,481,078.77. Following the sale, the insider owned 51,808 shares of the company's stock, valued at approximately $14,293,309.12. This represents a 14.79% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 160,516 shares of company stock valued at $7,344,604. 11.61% of the stock is owned by company insiders.

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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