Roth Capital Forecasts Strong Price Appreciation for Alphabet (NASDAQ:GOOG) Stock

Key Points

• Roth Capital raised its price target on Alphabet from $435 to $440 and kept a buy rating, implying about 39% upside from the current price.
• Several other analysts also remain constructive on Alphabet, with multiple buy and overweight ratings despite some modest target cuts; the consensus target is $408.27.
• Alphabet’s latest earnings were strong, with EPS of $9.11 versus $2.88 expected and revenue of $119.8 billion beating estimates, supported by continued growth in Search, YouTube, and Google Cloud.

Alphabet (NASDAQ:GOOG - Get Free Report) had its price objective raised by analysts at Roth Capital from $435.00 to $440.00 in a report issued on Thursday. The firm presently has a "buy" rating on the information services provider's stock. Roth Capital's price objective suggests a potential upside of 39.10% from the company's current price.

Several other analysts also recently weighed in on the company. Morgan Stanley lowered their price objective on Alphabet from $415.00 to $400.00 and set an "overweight" rating for the company in a research report on Thursday. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $420.00 target price (down from $435.00) on shares of Alphabet in a research note on Thursday. Phillip Securities lowered shares of Alphabet from a "strong-buy" rating to a "moderate buy" rating in a report on Wednesday, April 15th. Pivotal Research raised their price target on shares of Alphabet from $470.00 to $475.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Raymond James Financial restated a "strong-buy" rating on shares of Alphabet in a research report on Thursday. Five investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $408.27.

Alphabet Price Performance

Shares of GOOG stock traded down $25.60 during trading hours on Thursday, hitting $316.31. 18,257,247 shares of the company's stock were exchanged, compared to its average volume of 21,381,564. The company has a market capitalization of $3.83 trillion, a PE ratio of 24.17, a PEG ratio of 1.43 and a beta of 1.23. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16. Alphabet has a 12-month low of $188.70 and a 12-month high of $404.47. The business's 50 day simple moving average is $363.69 and its 200-day simple moving average is $337.49.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.88 by $6.23. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The company had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.06 billion. During the same quarter in the prior year, the company earned $2.31 EPS. The firm's revenue was up 24.2% on a year-over-year basis. On average, equities research analysts anticipate that Alphabet will post 14.34 earnings per share for the current year.

Insider Transactions at Alphabet

In other news, CAO Marsida Saraci sold 449 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $341.72, for a total value of $153,432.28. Following the completion of the transaction, the chief accounting officer owned 27,348 shares in the company, valued at $9,345,358.56. This trade represents a 1.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of Alphabet stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $23.75, for a total value of $2,077,531.25. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 159,415 shares of company stock worth $7,672,279. 12.99% of the stock is owned by insiders.

Institutional Trading of Alphabet

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Nvest Wealth Strategies Inc. bought a new stake in Alphabet during the fourth quarter worth about $38,000. Lifetime Wealth Management P.C. bought a new position in shares of Alphabet during the fourth quarter valued at approximately $38,000. Imprint Wealth LLC purchased a new position in shares of Alphabet during the third quarter valued at approximately $31,000. Bard Associates Inc. purchased a new position in shares of Alphabet during the fourth quarter valued at approximately $41,000. Finally, Towne Trust Company N.A boosted its position in shares of Alphabet by 34.0% in the 4th quarter. Towne Trust Company N.A now owns 134 shares of the information services provider's stock worth $42,000 after purchasing an additional 34 shares in the last quarter. 27.26% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet delivered a strong Q2 beat, with revenue, EPS, and cloud growth all topping expectations, reinforcing the strength of Search, YouTube, and Google Cloud. Google quarterly cloud revenue growth beats expectations
• Positive Sentiment: Google Cloud momentum and rising Gemini usage suggest Alphabet’s AI investments are beginning to show returns, which could support longer-term growth. Alphabet Beats on Cloud Revenue, Posts Strong Gemini Usage
• Positive Sentiment: Analyst sentiment remains constructive, with several firms maintaining buy ratings and raising price targets after the earnings report. Tickerreport.com
• Neutral Sentiment: Alphabet also announced new, cheaper Gemini model updates and work on efficiency-improving AI chips, which may help offset future infrastructure costs if execution improves. Google releases three new Gemini models — but no 3.5 Pro
• Negative Sentiment: Investors are worried Alphabet’s AI capex spree is getting too large, especially after the company raised spending guidance and reported negative free cash flow. Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
• Negative Sentiment: Alphabet also faces added regulatory pressure after the EU hit Google with a roughly $1 billion antitrust fine over Search and Play Store practices. Google hit with $1 billion EU fine, first under landmark rules

Alphabet Company Profile

Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.

Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.

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