Summit Global Investments Lowers Holdings in Alphabet Inc. $GOOGL

Key Points

• Summit Global Investments cut its Alphabet stake by 4.4% in the first quarter, selling 2,135 shares and retaining 46,207 shares valued at approximately $13.3 million. Alphabet remains 0.8% of the firm’s portfolio and its 13th-largest holding.
• Alphabet reported a strong quarter, with EPS of $9.11 versus the $2.89 consensus and revenue of $119.8 billion, exceeding estimates. The company also declared a quarterly dividend of $0.22 per share, or $0.88 annually.
• Despite generally favorable analyst sentiment—Alphabet carries a consensus “Buy” rating and an average $419.86 price target—recent insider sales and the rising cost of its AI infrastructure buildout present potential headwinds.

Summit Global Investments lowered its holdings in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 4.4% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 46,207 shares of the information services provider's stock after selling 2,135 shares during the period. Alphabet makes up 0.8% of Summit Global Investments' holdings, making the stock its 13th biggest holding. Summit Global Investments' holdings in Alphabet were worth $13,287,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in GOOGL. Strategic Wealth Advisors LLC increased its position in shares of Alphabet by 6.0% during the first quarter. Strategic Wealth Advisors LLC now owns 477 shares of the information services provider's stock worth $137,000 after acquiring an additional 27 shares during the period. Midwest Professional Planners LTD. boosted its holdings in Alphabet by 1.2% in the first quarter. Midwest Professional Planners LTD. now owns 2,364 shares of the information services provider's stock valued at $680,000 after purchasing an additional 29 shares during the period. Symmetry Partners LLC boosted its holdings in Alphabet by 0.4% in the fourth quarter. Symmetry Partners LLC now owns 7,912 shares of the information services provider's stock valued at $2,476,000 after purchasing an additional 30 shares during the period. Private Wealth Management Group LLC grew its stake in Alphabet by 1.2% during the 1st quarter. Private Wealth Management Group LLC now owns 2,540 shares of the information services provider's stock worth $730,000 after purchasing an additional 30 shares in the last quarter. Finally, SKY Mountain Capital Management Inc. grew its stake in Alphabet by 1.1% during the 1st quarter. SKY Mountain Capital Management Inc. now owns 2,791 shares of the information services provider's stock worth $803,000 after purchasing an additional 30 shares in the last quarter. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the firm's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $18.90, for a total value of $2,232,808.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Frances Arnold sold 82 shares of the stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $333.39, for a total transaction of $27,337.98. Following the transaction, the director directly owned 18,914 shares of the company's stock, valued at $6,305,738.46. This represents a 0.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 600,547 shares of company stock valued at $16,255,540 over the last 90 days. Insiders own 11.61% of the company's stock.

Alphabet Stock Up 6.7%

Shares of NASDAQ:GOOGL opened at $356.13 on Friday. Alphabet Inc. has a 1-year low of $187.82 and a 1-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 stock has a market cap of $4.36 trillion, a P/E ratio of 17.89, a P/E/G ratio of 0.94 and a beta of 1.24. The firm has a fifty day moving average price of $357.79 and a 200 day moving average price of $339.30.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $6.22. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The company had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.07 billion. Sell-side analysts predict that Alphabet Inc. will post 20.51 EPS for the current year.

Alphabet Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Monday, September 7th will be paid a dividend of $0.22 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.88 annualized dividend and a yield of 0.2%. Alphabet's dividend payout ratio is currently 4.42%.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s custom Tensor Processing Units (TPUs) are increasingly viewed as credible alternatives to Nvidia chips. That could reduce Google’s dependence on external suppliers and create a potential external chip-revenue opportunity. Alphabet and Amazon custom AI chips
• Positive Sentiment: Recent commentary highlights Alphabet’s record quarter, strong Google Cloud growth, Gemini adoption and enterprise AI demand. Analysts and value-focused investors continue to view GOOGL as comparatively inexpensive among large technology and AI companies. Alphabet AI investment and valuation
• Positive Sentiment: Google is reportedly supporting a $15 billion Anthropic data-center project with chips and financial guarantees, while Oracle is expanding its partnership to bring Gemini models to enterprise applications. These initiatives could drive Google Cloud demand and strengthen Alphabet’s AI ecosystem. Anthropic data center backed by Google
• Neutral Sentiment: Alphabet’s reported quarterly earnings and revenue beat consensus estimates by wide margins, supporting the fundamental case, although investors remain focused on whether AI growth will translate into sufficient cash returns.
• Negative Sentiment: Alphabet withdrew its Google Earth AI image-generation feature only one day after launch following criticism that fabricated imagery could spread misinformation. The quick reversal limits immediate product risk but raises questions about AI governance and rollout discipline. Google Earth AI feature withdrawn
• Negative Sentiment: The AI buildout is becoming increasingly expensive. Alphabet is targeting up to $205 billion in 2026 capital expenditures, while rising memory and infrastructure costs are pressuring cash flow and increasing future depreciation. AI buildout costs and cash flow
• Negative Sentiment: Recent insider sales were small relative to the executives’ remaining holdings, but they provide a modest sentiment headwind. Separately, investor-law-firm investigations could create additional legal and reputational overhang. Alphabet director stock sale

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Rosenblatt Securities restated a "neutral" rating and set a $393.00 price target on shares of Alphabet in a report on Thursday, July 23rd. Wolfe Research decreased their price objective on Alphabet from $390.00 to $360.00 and set an "outperform" rating for the company in a research note on Friday, April 10th. The Goldman Sachs Group boosted their price objective on Alphabet from $400.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Stifel Nicolaus set a $420.00 target price on shares of Alphabet and gave the stock a "buy" rating in a research note on Thursday, April 30th. Finally, HSBC reaffirmed a "buy" rating and issued a $420.00 target price (down from $435.00) on shares of Alphabet in a report on Tuesday, June 2nd. Six equities research analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, Alphabet presently has an average rating of "Buy" and an average target price of $419.86.

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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