Alphabet (NASDAQ:GOOGL) Trading Up 1.1% – Still a Buy?

Shares of Alphabet Inc. (NASDAQ:GOOGL) rose 1.1% during mid-day trading on Tuesday . The company traded as high as $376.00 and last traded at $373.25. Approximately 24,397,306 shares were traded during trading, a decline of 23% from the average daily volume of 31,803,859 shares. The stock had previously closed at $369.35.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google released Android 17 and Wear OS 7, adding new multitasking tools and fresh Pixel features, while also expanding Gemini capabilities with AI models like Lyria 3 and Gemini Omni. This reinforces Alphabet’s AI leadership and could support device and platform engagement. Android 17 launches with new multitasking tools as Google expands Gemini features
• Positive Sentiment: Google Cloud announced a strategic partnership with Ineffable Intelligence, which chose Google Cloud as its preferred infrastructure partner for a new frontier AI lab. Wins like this suggest continued strength in Alphabet’s cloud and AI business. Ineffable Intelligence Selects Google Cloud To Power Its Superintelligence Mission
• Positive Sentiment: Several recent reports remain constructive on Alphabet, with analysts and market commentators highlighting it as an attractive big-tech and AI beneficiary. That adds to sentiment that the stock still has upside potential. Alphabet: Still A Big Tech Pick To ‘Buy’ Now
• Neutral Sentiment: Google’s lawsuit over AI-enabled scam websites and Reuters’ report on Chinese-linked hackers underscore ongoing cybersecurity risks, but they also show Alphabet actively policing abuse on its platforms. AI Scam Surge Prompts Google to File Lawsuit Chinese-linked hackers targeted U.S.,Canadian research facilities for a year, Google says
• Negative Sentiment: Howard Marks warned that investing in AI stocks is becoming “closer to speculating,” a reminder that the AI trade could be vulnerable if enthusiasm cools or valuations come under pressure. Howard Marks: Investing in AI Stocks Is ‘Closer to Speculating’ Than Analysis

Wall Street Analysts Forecast Growth

GOOGL has been the topic of a number of research analyst reports. Roth Mkm reissued a “buy” rating on shares of Alphabet in a research report on Thursday, April 30th. Royal Bank Of Canada set a $425.00 price objective on shares of Alphabet and gave the stock an “outperform” rating in a research report on Thursday, April 30th. Guggenheim reissued a “buy” rating and set a $450.00 price objective (up from $375.00) on shares of Alphabet in a research report on Thursday, April 30th. JPMorgan Chase & Co. reissued a “buy” rating on shares of Alphabet in a research report on Monday, May 4th. Finally, Loop Capital increased their price objective on shares of Alphabet from $355.00 to $490.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Alphabet presently has a consensus rating of “Moderate Buy” and a consensus price target of $413.13.

Alphabet Stock Up 1.1%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.92 and a current ratio of 1.92. The company has a market cap of $4.52 trillion, a price-to-earnings ratio of 28.47, a price-to-earnings-growth ratio of 1.54 and a beta of 1.23. The stock’s fifty day moving average is $361.93 and its two-hundred day moving average is $330.66.

Alphabet (NASDAQ:GOOGL) last posted its earnings results on Wednesday, April 29th. The information services provider reported $5.11 earnings per share for the quarter, topping analysts’ consensus estimates of $2.64 by $2.47. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The company had revenue of $109.90 billion for the quarter, compared to analyst estimates of $106.98 billion. Sell-side analysts predict that Alphabet Inc. will post 14.3 earnings per share for the current fiscal year.

Alphabet Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 8th were paid a $0.22 dividend. This is a positive change from Alphabet’s previous quarterly dividend of $0.21. The ex-dividend date was Monday, June 8th. This represents a $0.88 annualized dividend and a yield of 0.2%. Alphabet’s dividend payout ratio (DPR) is 6.71%.

Insider Transactions at Alphabet

In other Alphabet news, insider John Kent Walker sold 8,993 shares of the stock in a transaction dated Friday, March 27th. The shares were sold at an average price of $275.89, for a total value of $2,481,078.77. Following the completion of the sale, the insider owned 51,808 shares in the company, valued at approximately $14,293,309.12. This trade represents a 14.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director John L. Hennessy sold 1,050 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $393.26, for a total transaction of $412,923.00. Following the completion of the sale, the director owned 2,531 shares of the company’s stock, valued at approximately $995,341.06. This trade represents a 29.32% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 191,966 shares of company stock worth $16,963,968. Company insiders own 11.61% of the company’s stock.

Institutional Investors Weigh In On Alphabet

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CIBC Bancorp USA Inc. acquired a new position in shares of Alphabet during the third quarter valued at $416,217,000. NewEdge Wealth LLC lifted its stake in shares of Alphabet by 11.8% during the fourth quarter. NewEdge Wealth LLC now owns 887,209 shares of the information services provider’s stock valued at $277,696,000 after acquiring an additional 93,293 shares during the period. World Investment Advisors lifted its stake in shares of Alphabet by 9.2% during the fourth quarter. World Investment Advisors now owns 274,761 shares of the information services provider’s stock valued at $86,000,000 after acquiring an additional 23,107 shares during the period. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new position in shares of Alphabet during the fourth quarter valued at $28,902,000. Finally, Private Advisory Group LLC lifted its stake in shares of Alphabet by 12.2% during the fourth quarter. Private Advisory Group LLC now owns 24,717 shares of the information services provider’s stock valued at $7,736,000 after acquiring an additional 2,678 shares during the period. Hedge funds and other institutional investors own 40.03% of the company’s stock.

Alphabet Company 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.