Trans Canada Capital Inc. Takes $21.23 Million Position in Alphabet Inc. $GOOGL

Key Points

• Trans Canada Capital initiated a $21.23 million Alphabet position in the second quarter, purchasing 59,396 shares. Alphabet now represents about 1.2% of the fund’s portfolio, while institutional investors collectively own 40.03% of the company.
• Alphabet reported quarterly revenue of $119.8 billion and earnings of $9.11 per share, exceeding analyst expectations. Investor sentiment is supported by AI-chip revenue, strong Cloud and AI opportunities, and Waymo’s planned Singapore expansion.
• Key risks include continued heavy AI infrastructure spending, higher interest rates, and antitrust remedies requiring Google to share ad-auction data. Insiders have also sold approximately $12 million of Alphabet stock over the past 90 days.

Trans Canada Capital Inc. bought a new position in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 59,396 shares of the information services provider's stock, valued at approximately $21,226,000. Alphabet comprises approximately 1.2% of Trans Canada Capital Inc.'s portfolio, making the stock its 11th biggest position.

Several other large investors have also made changes to their positions in the company. Lifetime Wealth Management P.C. bought a new stake in Alphabet during the 4th quarter worth about $32,000. EMC Capital Management bought a new position in shares of Alphabet in the 4th quarter valued at about $33,000. Bard Associates Inc. acquired a new stake in shares of Alphabet during the 4th quarter worth approximately $52,000. Van Den Berg Management I Inc. grew its position in shares of Alphabet by 319.6% during the 1st quarter. Van Den Berg Management I Inc. now owns 214 shares of the information services provider's stock worth $61,000 after buying an additional 163 shares during the period. Finally, Graney & King LLC raised its stake in shares of Alphabet by 38.5% during the second quarter. Graney & King LLC now owns 180 shares of the information services provider's stock worth $64,000 after buying an additional 50 shares during the last quarter. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI chip sales add a new revenue stream: Alphabet began recognizing revenue from sales of its internally developed AI chip systems in the second quarter. Investors may view the business as both a potential growth driver and a way to monetize Google’s technology infrastructure. 2 Stocks to Buy as Google Starts Selling Its AI Chips
• Positive Sentiment: Analyst raises price target: Tigress Financial Partners increased its price target for GOOGL to $485, reflecting confidence in Alphabet’s Search, Cloud, YouTube, Gemini and custom-chip opportunities. Alphabet Price Target Raised to $485
• Positive Sentiment: Waymo expands internationally: Alphabet’s autonomous-driving unit plans to launch an all-electric robotaxi service in Singapore by 2028, strengthening the long-term investment case for Alphabet’s “Other Bets” portfolio. Waymo to Bring Autonomous Ride-Hailing to Singapore
• Positive Sentiment: Options activity signals bullish positioning: Investors purchased roughly 520,000 Alphabet call options, above typical volume, indicating increased speculative interest in further upside.
• Neutral Sentiment: Ad-tech ruling avoids a breakup but imposes restrictions: A federal judge ordered Google to share more auction data with publishers and appoint an antitrust monitor, but rejected a forced breakup. Avoiding structural separation limits the immediate risk to Alphabet’s advertising business, while the behavioral remedies could pressure operations and margins. Tech Watchdogs Criticize Google Adtech Ruling
• Negative Sentiment: Higher rates and AI spending remain risks: The Federal Reserve’s rate increase and Alphabet’s heavy investment in AI infrastructure could keep pressure on free cash flow and valuation, even as Cloud backlog and AI demand remain strong.

Insider Activity at Alphabet

In other news, Director Frances Arnold sold 82 shares of the business's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $337.71, for a total value of $27,692.22. Following the sale, the director directly owned 18,995 shares in the company, valued at $6,414,801.45. The trade was a 0.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the business's stock in a transaction that occurred 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 450,875 shares of company stock valued at $11,984,482. 11.61% of the stock is owned by corporate insiders.

Alphabet Price Performance

GOOGL opened at $349.54 on Friday. The stock has a market cap of $4.27 trillion, a P/E ratio of 17.56, a P/E/G ratio of 1.01 and a beta of 1.22. Alphabet Inc. has a 12 month low of $235.84 and a 12 month high of $408.61. 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 company has a fifty day simple moving average of $345.20 and a 200 day simple moving average of $344.91.

Alphabet (NASDAQ:GOOGL - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, beating the consensus estimate of $2.89 by $6.22. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The business had revenue of $119.80 billion for the quarter, compared to analysts' expectations of $117.07 billion. On average, research analysts expect that Alphabet Inc. will post 20.51 EPS for the current year.

Alphabet Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Monday, September 7th were issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Friday, September 4th. Alphabet's dividend payout ratio (DPR) is presently 4.42%.

Analyst Ratings Changes

Several brokerages recently weighed in on GOOGL. Zacks Research lowered shares of Alphabet from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. Jefferies Financial Group reiterated a "buy" rating on shares of Alphabet in a research report on Monday, June 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of Alphabet in a research note on Friday, July 17th. Piper Sandler restated an "overweight" rating and issued a $395.00 price target (down from $445.00) on shares of Alphabet in a research report on Thursday, July 23rd. Finally, Wall Street Zen cut Alphabet from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Five equities research analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Alphabet presently has an average rating of "Buy" and a consensus target price of $422.16.

Alphabet Company Profile

Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.

Alphabet's largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.

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