Alphabet (NASDAQ:GOOG) Shares Down 1% Following Insider Selling

Alphabet Inc. (NASDAQ:GOOG)’s stock price dropped 1% during trading on Monday following insider selling activity. The company traded as low as $369.71 and last traded at $372.58. Approximately 16,316,888 shares traded hands during trading, a decline of 21% from the average daily volume of 20,730,338 shares. The stock had previously closed at $376.43.

Specifically, Director Frances Arnold sold 102 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $381.00, for a total value of $38,862.00. Following the completion of the sale, the director directly owned 18,721 shares in the company, valued at approximately $7,132,701. The trade was a 0.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Alphabet in a report on Monday, April 20th. Wedbush reissued an “outperform” rating and issued a $370.00 price target on shares of Alphabet in a research note on Thursday, February 5th. UBS Group restated a “neutral” rating and set a $348.00 price target (up from $345.00) on shares of Alphabet in a research report on Thursday, February 12th. Truist Financial set a $430.00 price objective on Alphabet in a report on Monday. Finally, Oppenheimer boosted their target price on Alphabet from $425.00 to $445.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Five analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average target price of $376.00.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Berkshire Hathaway’s $10 billion investment in Alphabet (NASDAQ: GOOG) is being viewed as a major endorsement of the company’s AI expansion plans and long-term prospects. Berkshire invests extra $10 billion in Alphabet, deepening bet on AI
• Positive Sentiment: Analysts remain upbeat, with Goldman Sachs and TD Cowen maintaining bullish views after Alphabet’s AI announcements, suggesting continued confidence in its product and monetization pipeline. Goldman Sachs and TD Cowen Maintain Buy Ratings on Alphabet (GOOGL) After AI Announcements at Google I/O
• Positive Sentiment: Commentary that Google is a “clear beneficiary” of AI search supports the view that Alphabet can protect its core search franchise even as AI changes how users find information. Google Is the Clear Beneficiary,” Says Top Analyst as AI Search Takes Off
• Neutral Sentiment: Google and Alphabet are also being discussed as potential beneficiaries of future AI and space-infrastructure projects, but these ideas are still longer-term optionality rather than immediate earnings drivers. AI data centers in space are Big Tech’s next big bet
• Negative Sentiment: The $80 billion stock sale is the main pressure point, since it suggests heavy AI spending needs and raises dilution concerns for existing shareholders. Alphabet plans to raise $80 billion to pay for AI buildout
• Negative Sentiment: U.K. regulators have imposed new search conduct rules, including allowing publishers to opt out of AI training and AI search features, which could limit Google’s control over content and weaken future AI-search economics. UK regulator enforces new competition requirements for Google search

Alphabet Price Performance

The stock has a market cap of $4.34 trillion, a PE ratio of 27.34, a PEG ratio of 1.60 and a beta of 1.22. The business’s 50-day simple moving average is $344.61 and its 200-day simple moving average is $325.11. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.16.

Alphabet (NASDAQ:GOOG) last posted its earnings results on Thursday, April 30th. The information services provider reported $5.11 earnings per share for the quarter, topping analysts’ consensus estimates of $2.68 by $2.43. The company had revenue of $109.90 billion during the quarter, compared to analyst estimates of $106.96 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. Alphabet’s revenue for the quarter was up 21.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.81 earnings per share. On average, research analysts expect that Alphabet Inc. will post 14.29 EPS for the current fiscal year.

Alphabet Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 8th will be issued a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 0.2%. This is an increase from Alphabet’s previous quarterly dividend of $0.21. The ex-dividend date is Monday, June 8th. Alphabet’s dividend payout ratio (DPR) is presently 6.41%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in GOOG. Providence Wealth Advisors LLC lifted its holdings in Alphabet by 0.3% in the first quarter. Providence Wealth Advisors LLC now owns 10,508 shares of the information services provider’s stock worth $3,094,000 after buying an additional 29 shares during the period. One Charles Private Wealth Services LLC boosted its holdings in shares of Alphabet by 0.6% during the 1st quarter. One Charles Private Wealth Services LLC now owns 4,844 shares of the information services provider’s stock valued at $1,390,000 after buying an additional 29 shares in the last quarter. Ring Mountain Capital LLC grew its position in shares of Alphabet by 0.9% in the 4th quarter. Ring Mountain Capital LLC now owns 3,554 shares of the information services provider’s stock worth $1,174,000 after buying an additional 30 shares during the period. Cannon Financial Strategists Inc. boosted its position in shares of Alphabet by 1.9% in the 4th quarter. Cannon Financial Strategists Inc. now owns 1,589 shares of the information services provider’s stock worth $499,000 after purchasing an additional 30 shares in the last quarter. Finally, Financial Enhancement Group LLC grew its stake in shares of Alphabet by 2.3% in the 1st quarter. Financial Enhancement Group LLC now owns 1,323 shares of the information services provider’s stock worth $380,000 after buying an additional 30 shares during the last quarter. 27.26% of the stock is owned by hedge funds and other institutional investors.

About Alphabet

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.