VIRGINIA RETIREMENT SYSTEMS ET Al Makes New $401.14 Million Investment in Alphabet Inc. $GOOGL

Key Points

• Virginia Retirement Systems purchased 1.12 million Alphabet shares worth approximately $401.1 million in the second quarter, making Alphabet its fourth-largest holding at about 2.4% of the portfolio.
• Alphabet reported quarterly revenue of $119.8 billion and earnings of $9.11 per share, substantially exceeding analyst expectations. The company also paid a quarterly dividend of $0.22 per share.
• Wall Street remains broadly bullish, with a consensus “Buy” rating and average price target of $422.16 versus the stock’s $349.54 opening price; however, heavy AI spending, higher interest rates and new ad-tech restrictions remain risks.

VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,122,472 shares of the information services provider's stock, valued at approximately $401,138,000. Alphabet makes up approximately 2.4% of VIRGINIA RETIREMENT SYSTEMS ET Al's holdings, making the stock its 4th largest position.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Financial Insights Inc. raised its holdings in shares of Alphabet by 23.2% during the second quarter. Financial Insights Inc. now owns 3,993 shares of the information services provider's stock valued at $1,427,000 after acquiring an additional 751 shares during the period. Carlson Financial Inc. acquired a new position in Alphabet in the 2nd quarter worth approximately $607,000. Tanager Wealth Management LLP boosted its stake in Alphabet by 3.8% in the 2nd quarter. Tanager Wealth Management LLP now owns 35,636 shares of the information services provider's stock worth $12,735,000 after purchasing an additional 1,293 shares during the period. Trans Canada Capital Inc. purchased a new position in Alphabet during the 2nd quarter worth approximately $21,226,000. Finally, Trevian Wealth Management LLC grew its position in Alphabet by 1.5% during the 2nd quarter. Trevian Wealth Management LLC now owns 6,772 shares of the information services provider's stock worth $2,420,000 after purchasing an additional 99 shares in the last quarter. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet Trading Up 0.6%

Alphabet stock opened at $349.54 on Friday. The company's fifty day simple moving average is $345.20 and its 200-day simple moving average is $344.91. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. Alphabet Inc. has a 12 month low of $235.84 and a 12 month high of $408.61. 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 (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, topping 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 business had revenue of $119.80 billion for the quarter, compared to the consensus estimate of $117.07 billion. As a group, sell-side analysts forecast that Alphabet Inc. will post 20.51 EPS for the current fiscal year.

Alphabet Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Monday, September 7th were paid a $0.22 dividend. The ex-dividend date was Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. Alphabet's payout ratio is 4.42%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. New Street Research increased their target price on Alphabet from $450.00 to $455.00 and gave the company a "buy" rating in a report on Friday, June 5th. KeyCorp lifted their price target on Alphabet from $425.00 to $445.00 and gave the company an "overweight" rating in a report on Friday, July 10th. Truist Financial set a $420.00 price target on Alphabet and gave the company a "buy" rating in a research report on Thursday, July 23rd. Wall Street Zen lowered Alphabet from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Cantor Fitzgerald reissued an "overweight" rating and issued a $420.00 price objective (down from $435.00) on shares of Alphabet in a research note on Thursday, July 23rd. Five research analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $422.16.

Key Alphabet News

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 Transactions at Alphabet

In other Alphabet news, insider John Walker sold 8,998 shares of the company's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $349.29, for a total value of $3,142,911.42. Following the transaction, the insider directly owned 75,290 shares of the company's stock, valued at $26,298,044.10. This represents a 10.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the firm's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $19.46, for a total value of $3,832,277.26. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 450,875 shares of company stock valued at $11,984,482. 11.61% of the stock is currently owned by company insiders.

About Alphabet

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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