Alphabet (NASDAQ:GOOG) Trading Up 4% – Still a Buy?

Alphabet Inc. (NASDAQ:GOOG)’s share price was up 4% during trading on Wednesday . The stock traded as high as $399.93 and last traded at $399.04. Approximately 18,043,005 shares were traded during trading, a decline of 13% from the average daily volume of 20,800,010 shares. The stock had previously closed at $383.82.

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Bank of America and other analysts are expecting major Gemini AI announcements at Google I/O, which could reinforce Alphabet’s leadership in AI and support the stock. BofA Sends Blunt Message for Alphabet Investors Ahead of Google I/O
• Positive Sentiment: Oppenheimer raised its price target on Alphabet, and Erste Group also lifted earnings estimates, signaling stronger profit expectations ahead of Google I/O. Alphabet had its price target raised by Oppenheimer Holdings, Inc.
• Positive Sentiment: Several investors and funds, including Goldman Sachs and Egerton Capital, disclosed larger Alphabet stakes, suggesting continued institutional confidence. Fund Update: GOLDMAN SACHS GROUP INC Just Disclosed New Holdings
• Positive Sentiment: Reports that Google’s Gemini Flash model is quietly gaining AI customers and that Alphabet is expanding AI infrastructure point to improving enterprise demand for its AI products. Google has been quietly gaining AI customers, even before big releases next week
• Positive Sentiment: Alphabet completed a record 576.5 billion yen bond offering to fund AI capex, showing it still has strong access to capital for its infrastructure buildout. Alphabet completes record-breaking yen bond issuance
• Neutral Sentiment: News that Google is in talks with SpaceX to launch data centers into space is intriguing, but it is still early-stage and speculative. Google in Talks with SpaceX to Launch Data Centers into Space
• Neutral Sentiment: Isomorphic Labs raised $2.1 billion to use AI for drug discovery, which highlights Alphabet’s broader AI ecosystem, but the direct stock impact is limited for now. Isomorphic Labs Raises $2.1 Billion to End Disease With AI
• Negative Sentiment: Bill Ackman’s Pershing Square sharply cut its GOOG and GOOGL positions, adding to concern that some large investors may be taking profits after the run-up. Fund Update: Bill Ackman’s Pershing Square Capital Management, L.P. Just Disclosed New Holdings
• Negative Sentiment: Some commentary says Alphabet’s heavy AI and cloud spending is pressuring free cash flow, raising questions about near-term margins and valuation. 6.7% AA2 Bond Yield From Alphabet, But There Is a Catch

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on GOOG shares. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $370.00 target price on shares of Alphabet in a research report on Tuesday, January 20th. TD Cowen upped their target price on Alphabet from $375.00 to $450.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Truist Financial set a $385.00 target price on Alphabet in a research report on Wednesday, April 22nd. Royal Bank Of Canada restated an “outperform” rating and set a $375.00 target price on shares of Alphabet in a research report on Thursday, January 15th. Finally, UBS Group restated a “neutral” rating and set a $348.00 target price (up from $345.00) on shares of Alphabet in a research report on Thursday, February 12th. Six research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $363.40.

Alphabet Trading Down 1.0%

The business has a 50 day moving average of $325.64 and a two-hundred day moving average of $316.44. 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 firm has a market capitalization of $4.77 trillion, a price-to-earnings ratio of 30.00, a P/E/G ratio of 1.71 and a beta of 1.25.

Alphabet (NASDAQ:GOOG) last posted its quarterly 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. Alphabet had a return on equity of 38.99% and a net margin of 37.92%.The business had revenue of $109.90 billion for the quarter, compared to the consensus estimate of $106.96 billion. During the same period in the prior year, the business earned $2.81 EPS. The firm’s revenue for the quarter was up 21.8% on a year-over-year basis. Equities analysts predict that Alphabet Inc. will post 14.28 EPS for the current year.

Alphabet Increases Dividend

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

Insider Buying and Selling at Alphabet

In other news, insider John Kent Walker sold 47,574 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $301.45, for a total value of $14,341,182.30. Following the completion of the sale, the insider directly owned 13,227 shares of the company’s stock, valued at $3,987,279.15. This represents a 78.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John L. Hennessy sold 1,050 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $331.65, for a total value of $348,232.50. Following the completion of the sale, the director directly owned 3,581 shares of the company’s stock, valued at approximately $1,187,638.65. This trade represents a 22.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 157,953 shares of company stock worth $47,767,818 in the last quarter. Company insiders own 12.99% of the company’s stock.

Institutional Trading of Alphabet

Several institutional investors and hedge funds have recently modified their holdings of the stock. Everest Financial Group LLC raised its stake in shares of Alphabet by 346.9% in the first quarter. Everest Financial Group LLC now owns 20,414 shares of the information services provider’s stock worth $5,856,000 after purchasing an additional 15,846 shares during the last quarter. OMERS ADMINISTRATION Corp raised its stake in shares of Alphabet by 28.0% in the first quarter. OMERS ADMINISTRATION Corp now owns 235,834 shares of the information services provider’s stock worth $67,651,000 after purchasing an additional 51,530 shares during the last quarter. 44 Wealth Management LLC raised its stake in shares of Alphabet by 16.4% in the first quarter. 44 Wealth Management LLC now owns 10,489 shares of the information services provider’s stock worth $3,009,000 after purchasing an additional 1,481 shares during the last quarter. Union Square Park Capital Management LLC purchased a new stake in shares of Alphabet in the first quarter worth approximately $1,434,000. Finally, Van Diest Capital LLC raised its stake in shares of Alphabet by 62.1% in the first quarter. Van Diest Capital LLC now owns 5,853 shares of the information services provider’s stock worth $1,679,000 after purchasing an additional 2,243 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.