Alphabet (NASDAQ:GOOG) Stock Price Down 4.1% on Analyst Downgrade

Alphabet Inc. (NASDAQ:GOOG)’s share price was down 4.1% during mid-day trading on Wednesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $355.16 and last traded at $360.13. 29,092,140 shares traded hands during trading, an increase of 34% from the average session volume of 21,667,850 shares. The stock had previously closed at $375.35.

A number of other equities research analysts have also recently commented on GOOG. Truist Financial reduced their target price on shares of Alphabet from $430.00 to $420.00 and set a “buy” rating for the company in a report on Thursday, July 23rd. JPMorgan Chase & Co. dropped their price target on Alphabet from $460.00 to $420.00 and set an “overweight” rating on the stock in a research report on Thursday, July 23rd. Wolfe Research set a $460.00 price objective on Alphabet in a research note on Thursday, July 23rd. Scotiabank reaffirmed an “outperform” rating and set a $450.00 price objective (up from $400.00) on shares of Alphabet in a research report on Thursday, April 30th. Finally, KeyCorp set a $445.00 price objective on shares of Alphabet in a research report on Friday, July 10th. Six equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Alphabet presently has an average rating of “Buy” and an average target price of $410.09.

Insiders Place Their Bets

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total value of $2,232,808.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Marsida Saraci sold 449 shares of the business’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total transaction of $149,606.80. Following the sale, the chief accounting officer owned 27,386 shares in the company, valued at $9,125,015.20. The trade was a 1.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 600,547 shares of company stock valued at $16,255,540 over the last 90 days. 12.99% of the stock is owned by corporate insiders.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s AI and cloud businesses remain strong: Gemini reportedly has 950 million monthly active users, while Google Cloud revenue surged 82% year over year in the second quarter and its backlog reached $514 billion. Google’s AI business is booming, so why are DeepMind’s biggest names quitting?
• Positive Sentiment: Analysts and market commentators continue to favor Alphabet’s cloud platform and AI products, with some viewing the company as an attractive way to gain exposure to potential quantum-computing growth. Jim Cramer Reveals How Alphabet Can Reverse Recent Weakness
• Positive Sentiment: Large institutions disclosed additional Alphabet purchases, including State Street’s estimated addition of 12.7 million GOOGL shares, Mitsubishi UFJ’s 1.6 million-share purchase and Lazard’s 87,358-share addition. These filings suggest continued long-term institutional confidence, although they reflect holdings as of June 30. State Street Fund Update
• Positive Sentiment: Alphabet’s $25 billion bond offering attracted roughly $115 billion in orders, indicating strong investor demand for the company’s debt and providing funding for AI infrastructure expansion. Google’s AI Bond Sale Attracts $115 Billion of Orders
• Neutral Sentiment: Alphabet is reorganizing its AI leadership. DeepMind co-founder Demis Hassabis is becoming chief scientist and focusing more on long-term research, while Jeff Dean is leaving after 27 years to launch an AI startup. The changes could improve strategic focus but raise questions about talent retention and execution. Google’s AI Leadership Shakeup
• Negative Sentiment: Investors are concerned that Alphabet’s accelerated AI investment will require substantially more capital. The new debt issuance, following a higher capital-spending forecast, has fueled worries about leverage and a potential borrowing spree despite Alphabet’s strong balance sheet. Alphabet Seeks Up to $25 Billion in Bond Sale
• Negative Sentiment: Zacks Research downgraded Alphabet from “strong buy” to “hold,” adding to near-term caution after the stock’s substantial year-long gains. Zacks Research
• Negative Sentiment: Environmental opposition is creating potential delays and added costs for Google’s planned $15 billion India data-center hub, while a law firm has begun investigating potential investor claims. Google’s India Data Center Project

Institutional Trading of Alphabet

A number of institutional investors have recently added to or reduced their stakes in GOOG. Providence Wealth Advisors LLC increased its position 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 in the last quarter. One Charles Private Wealth Services LLC increased its holdings in Alphabet by 0.6% in the 1st quarter. One Charles Private Wealth Services LLC now owns 4,844 shares of the information services provider’s stock worth $1,390,000 after acquiring an additional 29 shares in the last quarter. Wisconsin Wealth Advisors LLC increased its holdings in Alphabet by 1.3% in the 2nd quarter. Wisconsin Wealth Advisors LLC now owns 2,223 shares of the information services provider’s stock worth $785,000 after acquiring an additional 29 shares in the last quarter. Ring Mountain Capital LLC raised its stake in Alphabet by 0.9% during the 4th quarter. Ring Mountain Capital LLC now owns 3,554 shares of the information services provider’s stock worth $1,174,000 after acquiring an additional 30 shares during the period. Finally, Cannon Financial Strategists Inc. raised its stake in Alphabet by 1.9% during the 4th quarter. Cannon Financial Strategists Inc. now owns 1,589 shares of the information services provider’s stock worth $499,000 after acquiring an additional 30 shares during the period. Hedge funds and other institutional investors own 27.26% of the company’s stock.

Alphabet Price Performance

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 firm has a market cap of $4.32 trillion, a PE ratio of 17.76, a P/E/G ratio of 1.01 and a beta of 1.23. The firm’s fifty day simple moving average is $354.40 and its two-hundred day simple moving average is $338.85.

Alphabet (NASDAQ:GOOG) last announced its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, beating the consensus estimate of $2.87 by $6.24. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The firm had revenue of $119.80 billion for the quarter, compared to the consensus estimate of $116.53 billion. During the same period last year, the firm earned $2.31 EPS. The company’s revenue was up 24.2% on a year-over-year basis. As a group, research analysts expect that Alphabet Inc. will post 20.51 EPS for the current year.

Alphabet Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Monday, September 7th will be given a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Friday, September 4th. Alphabet’s payout ratio is presently 4.42%.

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.