Sound Shore Management Inc. CT Sells 94,063 Shares of Alphabet Inc. $GOOGL

Key Points

• Sound Shore Management reduced its Alphabet position by 26.9% in the first quarter, selling 94,063 shares and retaining 255,671 shares valued at approximately $73.5 million.
• Alphabet reported a strong quarter, with revenue rising 24% to $119.8 billion and EPS of $9.11 versus the $2.89 consensus estimate. Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $419.86.
• Major risks include Alphabet’s heavy AI investment: planned 2026 capital spending of $195 billion–$205 billion has raised concerns about negative free cash flow and whether infrastructure returns will justify the spending. Insiders and a major shareholder have also sold shares recently.

Sound Shore Management Inc. CT cut its position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 26.9% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 255,671 shares of the information services provider's stock after selling 94,063 shares during the quarter. Alphabet comprises 2.5% of Sound Shore Management Inc. CT's investment portfolio, making the stock its 22nd biggest holding. Sound Shore Management Inc. CT's holdings in Alphabet were worth $73,521,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new position in shares of Alphabet in the 4th quarter worth about $32,000. EMC Capital Management bought a new stake in Alphabet during the fourth quarter worth about $33,000. IFC & Insurance Marketing Inc. purchased a new stake in Alphabet in the fourth quarter worth about $38,000. Bard Associates Inc. bought a new position in shares of Alphabet during the fourth quarter valued at approximately $52,000. Finally, Kentucky Trust Co lifted its holdings in shares of Alphabet by 142.9% during the fourth quarter. Kentucky Trust Co now owns 170 shares of the information services provider's stock valued at $53,000 after purchasing an additional 100 shares during the last quarter. Institutional investors own 40.03% of the company's stock.

Insider Activity at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the business's stock in a transaction 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John L. Hennessy sold 1,050 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $368.63, for a total value of $387,061.50. Following the completion of the transaction, the director owned 1,481 shares in the company, valued at approximately $545,941.03. This trade represents a 41.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 600,465 shares of company stock worth $16,228,202 over the last quarter. Company insiders own 11.61% of the company's stock.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s latest quarter continued to support the long-term growth case: revenue rose 24% to $119.8 billion, Google Cloud growth accelerated to 82%, cloud operating income more than tripled, and its backlog reached $514 billion. Search revenue also grew 17%, easing concerns that AI tools are undermining the core advertising business. Alphabet quarter and valuation analysis
• Positive Sentiment: Investor enthusiasm is being supported by Alphabet’s potential to commercialize its internally developed AI chips, with initial external revenue reportedly expected by year-end. Analysts and value investors remain constructive; KeyCorp maintains an “Overweight” rating and a $445 target, while Phillip Securities upgraded Alphabet to “strong buy.” Alphabet AI silicon opportunity
• Positive Sentiment: Google is expanding its Play Signal age-assurance technology worldwide by the end of 2026, potentially strengthening Android’s safety tools and developer ecosystem. Waymo also began restoring freeway service, a sign of progress after earlier operational restrictions. Google age-assurance technology
• Neutral Sentiment: Analyst estimates were mixed: KeyCorp raised its full-year 2026 EPS forecast substantially but trimmed quarterly and 2027 estimates slightly, while Erste Group lifted its 2027 forecast. This indicates strong near-term expectations but uncertainty about longer-term spending and profitability.
• Negative Sentiment: The main pressure remains Alphabet’s planned $195 billion–$205 billion of 2026 capital spending. Quarterly capital expenditures reached $44.9 billion and free cash flow turned negative, prompting investors to question whether AI infrastructure returns will justify the investment. Alphabet AI spending concerns
• Negative Sentiment: Additional risks include renewed fears that lower-cost AI models could pressure technology valuations, potential European private damages claims following Google’s $1 billion fine, and reports of a DeepMind research-team restructuring. Recent insider and major-shareholder sales are also a modest sentiment headwind, although they do not necessarily signal deteriorating fundamentals. Google European damages risk

Alphabet Price Performance

NASDAQ GOOGL opened at $336.71 on Thursday. Alphabet Inc. has a one year low of $187.82 and a one year high of $408.61. The stock has a 50-day moving average of $359.40 and a 200 day moving average of $339.14. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. The company has a market capitalization of $4.08 trillion, a price-to-earnings ratio of 16.91, a PEG ratio of 0.95 and a beta of 1.24.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its 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 business had revenue of $119.80 billion for 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, sell-side analysts forecast that Alphabet Inc. will post 20.15 EPS 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 given a dividend of $0.22 per share. The ex-dividend date is Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. Alphabet's dividend payout ratio is 4.42%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on GOOGL. Rothschild & Co Redburn upped their price target on Alphabet from $390.00 to $430.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Citigroup restated an "outperform" rating on shares of Alphabet in a report on Monday, May 4th. Guggenheim reaffirmed a "buy" rating and issued a $450.00 price target (up from $375.00) on shares of Alphabet in a research report on Thursday, April 30th. Canaccord Genuity Group increased their price objective on shares of Alphabet from $415.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Finally, Mizuho lifted their target price on shares of Alphabet from $420.00 to $460.00 and gave the stock an "outperform" rating in a report on Wednesday, May 6th. Six analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $419.86.

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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