Alphabet (NASDAQ:GOOG) Shares Up 3.8% – Still a Buy?
by Mitch Edgeman · The Markets DailyAlphabet Inc. (NASDAQ:GOOG – Get Free Report)’s share price shot up 3.8% during trading on Thursday . The stock traded as high as $369.86 and last traded at $369.27. 37,471,776 shares traded hands during mid-day trading, an increase of 76% from the average session volume of 21,238,887 shares. The stock had previously closed at $355.68.
Alphabet News Roundup
Here are the key news stories impacting Alphabet this week:
- Positive Sentiment: Alphabet secured more evidence of strong AI demand, including a multi-year expanded Google Cloud partnership with Lovable and reports that Google Cloud could help power Apple’s Siri, highlighting growing enterprise and consumer AI relevance.
- Positive Sentiment: Investor sentiment was boosted by Berkshire Hathaway’s large Alphabet stake and other notable buying interest, which some traders viewed as a strong endorsement of Alphabet’s AI strategy and balance-sheet strength.
- Positive Sentiment: Several articles pointed to Alphabet’s huge AI-driven capital program and cloud backlog as signs the company is investing aggressively to capture more demand, with analysts continuing to publish bullish price targets and “Buy” ratings.
- Neutral Sentiment: Alphabet’s UPSIZED equity offering for AI infrastructure is being interpreted as both a growth catalyst and a source of possible dilution, so investors are balancing faster AI expansion against the cost of funding it.
- Neutral Sentiment: The launch of a voluntary U.S. AI cybersecurity review, along with positive commentary on Anthropic’s IPO prospects, may indirectly support Alphabet’s position in the broader AI ecosystem, but the impact is less immediate.
- Negative Sentiment: Google also faces fresh UK regulatory pressure: the CMA is forcing search-related conduct changes that let publishers opt out of AI summaries and model training, which could constrain Google’s AI search monetization and publisher relationships. Article Title
Analyst Ratings Changes
A number of equities analysts recently issued reports on the stock. Pivotal Research reiterated a “buy” rating and issued a $470.00 price target (up from $420.00) on shares of Alphabet in a research note on Wednesday, April 29th. The Goldman Sachs Group reiterated a “buy” rating and issued a $450.00 target price on shares of Alphabet in a research note on Thursday, May 21st. Stifel Nicolaus set a $420.00 price target on shares of Alphabet in a research report on Wednesday, May 20th. Phillip Securities lowered shares of Alphabet from a “strong-buy” rating to a “moderate buy” rating in a report on Wednesday, April 15th. Finally, DZ Bank upgraded Alphabet to a “strong-buy” rating in a research note on Monday, February 16th. Five investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, Alphabet has an average rating of “Buy” and an average target price of $376.00.
Read Our Latest Analysis on GOOG
Alphabet Price Performance
The stock has a market capitalization of $4.47 trillion, a PE ratio of 28.17, a PEG ratio of 1.54 and a beta of 1.22. The firm’s fifty day moving average price is $346.94 and its two-hundred day moving average price is $326.15. 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 – Get Free Report) last posted its earnings results on Thursday, April 30th. The information services provider reported $5.11 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $2.43. The business had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.96 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The firm’s revenue was up 21.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.81 EPS. On average, equities analysts predict that Alphabet Inc. will post 14.28 earnings per share for the current year.
Alphabet Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be paid a $0.22 dividend. This is an increase from Alphabet’s previous quarterly dividend of $0.21. The ex-dividend date is Monday, June 8th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.2%. Alphabet’s dividend payout ratio (DPR) is 6.41%.
Insider Activity at Alphabet
In related news, insider John Kent Walker sold 8,993 shares of the company’s stock in a transaction on Friday, March 27th. The stock was sold at an average price of $275.89, for a total transaction 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 represents a 14.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Amie Thuener O’toole sold 617 shares of the company’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $289.63, for a total transaction of $178,701.71. Following the sale, the chief accounting officer directly owned 10,093 shares of the company’s stock, valued at $2,923,235.59. The trade was a 5.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 193,016 shares of company stock valued at $17,282,549 in the last 90 days. 12.99% of the stock is owned by company insiders.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of GOOG. Imprint Wealth LLC purchased a new stake in Alphabet in the third quarter worth about $31,000. Nvest Wealth Strategies Inc. purchased a new position in shares of Alphabet during the 4th quarter valued at about $38,000. Lifetime Wealth Management P.C. purchased a new position in shares of Alphabet during the 4th quarter valued at about $38,000. Bard Associates Inc. bought a new position in shares of Alphabet during the 4th quarter valued at approximately $41,000. Finally, Towne Trust Company N.A grew its stake in shares of Alphabet by 34.0% during the 4th quarter. Towne Trust Company N.A now owns 134 shares of the information services provider’s stock valued at $42,000 after acquiring an additional 34 shares during the period. Hedge funds and other institutional investors own 27.26% of the company’s stock.
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.