Rose Capital Advisors LLC Acquires New Position in Alphabet Inc. $GOOG

Key Points

• Rose Capital Advisors acquired 19,982 Alphabet shares worth approximately $7.06 million in the second quarter, making GOOG its seventh-largest holding and representing 3.5% of its portfolio.
• Alphabet reported strong quarterly results, with revenue up 24.2% year over year and EPS of $9.11 versus the $2.87 consensus estimate. Analysts maintain a consensus “Buy” rating with an average price target of $415.55.
• While stable search traffic and expanding cloud and AI initiatives support the outlook, investors face risks from heavy AI-related spending, data-center delays and increased European regulatory pressure.

Rose Capital Advisors LLC bought a new position in shares of Alphabet Inc. (NASDAQ:GOOG - Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 19,982 shares of the information services provider's stock, valued at approximately $7,060,000. Alphabet accounts for 3.5% of Rose Capital Advisors LLC's investment portfolio, making the stock its 7th biggest position.

Several other large investors have also recently modified their holdings of GOOG. BlackRock Inc. grew its stake in Alphabet by 1.4% during the second quarter. BlackRock Inc. now owns 369,922,502 shares of the information services provider's stock valued at $130,704,718,000 after acquiring an additional 5,164,200 shares in the last quarter. State Street Corp boosted its holdings in Alphabet by 0.5% in the 4th quarter. State Street Corp now owns 187,102,863 shares of the information services provider's stock valued at $58,712,878,000 after purchasing an additional 953,790 shares during the period. Auto Owners Insurance Co boosted its holdings in Alphabet by 38,409.2% in the 4th quarter. Auto Owners Insurance Co now owns 179,836,276 shares of the information services provider's stock valued at $5,643,262,000 after purchasing an additional 179,369,280 shares during the period. J. Stern & Co. LLP grew its position in shares of Alphabet by 28,482.8% during the 4th quarter. J. Stern & Co. LLP now owns 112,091,870 shares of the information services provider's stock valued at $35,174,429,000 after purchasing an additional 111,699,704 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its position in shares of Alphabet by 1.1% during the 4th quarter. JPMorgan Chase & Co. now owns 100,602,893 shares of the information services provider's stock valued at $31,569,189,000 after purchasing an additional 1,073,151 shares in the last quarter. Hedge funds and other institutional investors own 27.26% of the company's stock.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Stable search traffic eases competitive concerns. Bank of America reportedly found no meaningful deterioration in Google’s web-traffic data, helping counter fears that AI search tools are taking share from Alphabet’s core search business. Bank of America Spots Reassuring Signal for Google Stock
• Positive Sentiment: Cloud and AI commercialization continue to expand. Google Cloud and Accenture are forming a unit with 1,000 engineers to help enterprises deploy Google’s AI products. Alphabet is also reportedly selling TPU systems directly to customers, potentially creating a new hardware revenue stream, while Google Cloud chief Thomas Kurian claimed the company’s AI-chip business is more than twice the size of its closest rival. Google Cloud and Accenture AI Unit
• Positive Sentiment: Energy and infrastructure access may support AI expansion. A $1.9 billion U.S. Energy Department loan to NextEra Energy will help revive an Iowa nuclear plant intended to supply power for Google, potentially improving Alphabet’s long-term access to reliable electricity for data centers. Google's Revived Nuclear Power Plant Loan
• Neutral Sentiment: Investors remain divided over valuation and capital spending. Analysts and commentators view GOOG as attractively valued relative to cloud growth, but Alphabet’s massive AI-related capital expenditures are pressuring near-term free cash flow and contributing to volatility.
• Negative Sentiment: Project Braid data-center delays raise execution concerns. Alphabet and Blackstone’s AI-cloud venture reportedly faces delays at major data-center sites, highlighting the permitting, construction and power challenges slowing the broader AI buildout. Google and Blackstone Venture Faces Delays
• Negative Sentiment: EU search changes could hurt user experience and business economics. Google says modifications required under the Digital Markets Act will reduce search quality, favor intermediaries over local businesses and increase costs, while exposing Alphabet to continuing regulatory pressure. Google Warns of Lower-Quality European Search Results

Insider Buying and Selling at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of Alphabet stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $19.46, for a total transaction of $3,832,277.26. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Kent Walker sold 8,998 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $349.29, for a total transaction of $3,142,911.42. Following the completion of the sale, the insider owned 75,290 shares of the company's stock, valued at approximately $26,298,044.10. The trade was a 10.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 451,925 shares of company stock valued at $12,371,544 over the last ninety days. Insiders own 12.99% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on GOOG. Oppenheimer reiterated an "outperform" rating and issued a $400.00 price objective (down from $445.00) on shares of Alphabet in a research report on Thursday, July 23rd. JPMorgan Chase & Co. reduced their target price on Alphabet from $460.00 to $420.00 and set an "overweight" rating for the company in a research report on Thursday, July 23rd. Wedbush started coverage on Alphabet in a research note on Thursday, July 16th. They issued an "outperform" rating and a $445.00 target price on the stock. Zacks Research cut Alphabet from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 5th. Finally, Canaccord Genuity Group set a $450.00 price target on Alphabet in a research report on Thursday, July 23rd. Six investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $415.55.

Alphabet Trading Up 0.0%

NASDAQ GOOG opened at $335.38 on Wednesday. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The stock's 50-day simple moving average is $346.28 and its two-hundred day simple moving average is $341.40. Alphabet Inc. has a twelve month low of $233.38 and a twelve month high of $404.47. The company has a market capitalization of $4.10 trillion, a price-to-earnings ratio of 16.84, a PEG ratio of 0.97 and a beta of 1.21.

Alphabet (NASDAQ:GOOG - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.87 by $6.24. The firm had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $116.53 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The company's revenue for the quarter was up 24.2% compared to the same quarter last year. During the same period in the prior year, the business earned $2.31 EPS. Research analysts forecast that Alphabet Inc. will post 20.5 EPS for the current fiscal year.

Alphabet Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Monday, September 7th will be given a dividend of $0.22 per share. 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 (DPR) is presently 4.42%.

About Alphabet

Alphabet Inc is a technology holding company best known as the parent company of Google. It was established in 2015 as part of a corporate restructuring intended to separate Google's core internet businesses from a collection of other ventures. Google remains Alphabet's largest business and serves users, advertisers, businesses and developers worldwide.

Google's principal products and services include its internet search engine, online advertising platforms, YouTube, Android, Chrome, Google Maps, Google Play and Google Photos.

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