Magellan Asset Management Ltd Lowers Stake in Alphabet Inc. $GOOG

Magellan Asset Management Ltd cut its holdings in shares of Alphabet Inc. (NASDAQ:GOOG) by 11.6% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 409,608 shares of the information services provider’s stock after selling 53,656 shares during the period. Alphabet makes up about 1.5% of Magellan Asset Management Ltd’s portfolio, making the stock its 29th largest holding. Magellan Asset Management Ltd’s holdings in Alphabet were worth $117,500,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Imprint Wealth LLC purchased a new stake in shares of Alphabet during the third quarter worth about $31,000. Nvest Wealth Strategies Inc. acquired a new position in shares of Alphabet during the 4th quarter worth about $38,000. Lifetime Wealth Management P.C. purchased a new position in Alphabet in the 4th quarter valued at about $38,000. Bard Associates Inc. purchased a new position in Alphabet in the 4th quarter valued at about $41,000. Finally, Towne Trust Company N.A boosted its holdings in Alphabet by 34.0% in the 4th quarter. Towne Trust Company N.A now owns 134 shares of the information services provider’s stock worth $42,000 after buying an additional 34 shares during the last quarter. Hedge funds and other institutional investors own 27.26% of the company’s stock.

Alphabet Stock Up 0.2%

Shares of NASDAQ GOOG opened at $319.09 on Friday. The stock has a market cap of $3.87 trillion, a PE ratio of 16.03, a P/E/G ratio of 1.31 and a beta of 1.23. The company has a current ratio of 2.72, a quick ratio of 1.92 and a debt-to-equity ratio of 0.16. Alphabet Inc. has a 12-month low of $188.70 and a 12-month high of $404.47. The company has a 50-day moving average of $360.63 and a 200 day moving average of $337.38.

Alphabet (NASDAQ:GOOG) last released its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, topping analysts’ consensus estimates of $2.87 by $6.24. The business had revenue of $119.80 billion for the quarter, compared to analyst estimates of $116.53 billion. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The business’s revenue was up 24.2% on a year-over-year basis. During the same period last year, the company posted $2.31 EPS. As a group, sell-side analysts predict that Alphabet Inc. will post 14.34 EPS for the current fiscal year.

Alphabet Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be issued a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, September 4th. Alphabet’s dividend payout ratio (DPR) is currently 4.42%.

Insider Activity

In other Alphabet news, Director Frances Arnold sold 112 shares of the company’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $351.28, for a total value of $39,343.36. Following the completion of the sale, the director directly owned 18,833 shares in the company, valued at $6,615,656.24. This represents a 0.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $23.75, for a total value of $2,077,531.25. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 159,415 shares of company stock valued at $7,672,279 in the last 90 days. 12.99% of the stock is owned by insiders.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet posted a strong Q2 beat, with revenue and EPS coming in ahead of expectations, while Google Cloud revenue surged 82% and cloud margins improved sharply.
• Positive Sentiment: AI and product demand remain strong, with management saying AI usage is rising across Search, Cloud, and Gemini, supporting the long-term growth story.
• Positive Sentiment: Several analysts reiterated bullish views or raised targets, and multiple commentary pieces argued the stock looks attractive after the pullback.
• Positive Sentiment: Verizon signed a deal worth more than $1 billion with Google for dark fiber connectivity, adding another sign of infrastructure demand tied to Alphabet’s data-center buildout. Article Title
• Neutral Sentiment: Waymo is reportedly considering ending its Uber partnership, which could affect how quickly Alphabet’s robotaxi business scales, but the direct financial impact is still unclear. Article Title
• Neutral Sentiment: Alphabet also disclosed a large SpaceX stake and saw some institutional holders trim positions, but these items are secondary to the main debate over AI spending and cash flow.
• Negative Sentiment: Investors were unnerved by Alphabet’s higher CapEx guidance and negative free cash flow, which raised concerns that AI spending may be outpacing near-term returns.
• Negative Sentiment: Alphabet was also hit by an EU antitrust fine of about $1 billion, adding another regulatory overhang. Article Title
• Negative Sentiment: Moody’s warned that the industry-wide AI buildout could threaten credit quality at Alphabet and other hyperscalers, reinforcing concerns about balance-sheet strain from heavy infrastructure investment. Article Title

Wall Street Analyst Weigh In

GOOG has been the subject of several research reports. Barclays reiterated an “overweight” rating and set a $425.00 price objective (up from $405.00) on shares of Alphabet in a research note on Thursday. Wells Fargo & Company lowered their price target on Alphabet from $418.00 to $411.00 and set an “overweight” rating on the stock in a research note on Thursday. Raymond James Financial reiterated a “strong-buy” rating on shares of Alphabet in a research report on Thursday. Wolfe Research set a $460.00 price objective on Alphabet in a research note on Thursday. Finally, DA Davidson reduced their price objective on Alphabet from $375.00 to $350.00 and set a “neutral” rating for the company in a research note on Thursday. Five analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Alphabet has a consensus rating of “Buy” and a consensus target price of $410.09.

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.