Zacks Research Downgrades Alphabet (NASDAQ:GOOG) to Hold

Alphabet (NASDAQ:GOOG) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday,Zacks.com reports.

A number of other analysts have also recently issued reports on GOOG. Royal Bank Of Canada reissued a “buy” rating and issued a $475.00 target price on shares of Alphabet in a research report on Thursday, July 23rd. UBS Group reaffirmed a “neutral” rating and set a $379.00 price target (down from $400.00) on shares of Alphabet in a research report on Thursday, July 23rd. Oppenheimer reiterated an “outperform” rating and issued a $400.00 price objective (down from $445.00) on shares of Alphabet in a research note on Thursday, July 23rd. Canaccord Genuity Group set a $450.00 price objective on Alphabet in a report on Thursday, July 23rd. Finally, The Goldman Sachs Group restated a “buy” rating and set a $450.00 target price on shares of Alphabet in a research report on Thursday, May 21st. Six investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $410.09.

Alphabet Stock Performance

NASDAQ GOOG opened at $356.62 on Wednesday. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.72 and a quick ratio of 2.64. Alphabet has a 1 year low of $195.22 and a 1 year high of $404.47. The company has a market capitalization of $4.36 trillion, a PE ratio of 17.91, a P/E/G ratio of 1.01 and a beta of 1.23. The company has a fifty day moving average of $354.40 and a two-hundred day moving average of $338.85.

Alphabet (NASDAQ:GOOG) last posted its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, topping analysts’ consensus estimates of $2.87 by $6.24. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The business had revenue of $119.80 billion for the quarter, compared to analysts’ expectations of $116.53 billion. During the same quarter in the previous year, the firm earned $2.31 earnings per share. The business’s revenue was up 24.2% compared to the same quarter last year. As a group, analysts expect that Alphabet will post 20.51 earnings per share for the current year.

Insider Buying and Selling

In related news, insider John Kent Walker sold 8,998 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $349.29, for a total value of $3,142,911.42. Following the transaction, the insider owned 75,290 shares in the company, valued at $26,298,044.10. The trade was a 10.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the company’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $19.46, for a total value of $3,832,277.26. The SEC filing for this sale provides additional information. Insiders have sold a total of 600,547 shares of company stock valued at $16,255,540 over the last quarter. 12.99% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alphabet

Several large investors have recently modified their holdings of GOOG. Gerber Kawasaki Wealth & Investment Management boosted its holdings in Alphabet by 1.0% in the 4th quarter. Gerber Kawasaki Wealth & Investment Management now owns 275,943 shares of the information services provider’s stock valued at $86,596,000 after purchasing an additional 2,850 shares in the last quarter. Newbridge Financial Services Group Inc. increased its position in Alphabet by 7.5% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 60,739 shares of the information services provider’s stock worth $19,060,000 after purchasing an additional 4,239 shares during the period. Violich Capital Management Inc. raised its stake in shares of Alphabet by 1.0% during the 4th quarter. Violich Capital Management Inc. now owns 340,776 shares of the information services provider’s stock worth $106,936,000 after buying an additional 3,378 shares in the last quarter. Montchanin Asset Management LLC purchased a new position in shares of Alphabet during the 1st quarter worth approximately $7,075,000. Finally, Robinhood Asset Management LLC acquired a new stake in shares of Alphabet in the 4th quarter valued at approximately $20,337,000. Hedge funds and other institutional investors own 27.26% of the company’s stock.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s planned 10-part bond offering of up to $25 billion was met with approximately $115 billion in investor orders, indicating strong confidence in the company’s credit quality and long-term AI strategy. The funds are intended to support data-center expansion and other infrastructure investments. Google’s AI Bond Sale Attracts $115 Billion of Orders
• Positive Sentiment: Google Cloud continues to benefit from strong AI demand, while AI lab Mirendil signed a multiyear, $100 million-plus agreement to obtain computing capacity from Google Cloud. Such contracts could help monetize Alphabet’s substantial AI infrastructure spending. Mirendil Inks $100M+ Google Cloud Deal
• Neutral Sentiment: The debt sale gives Alphabet additional flexibility to fund its roughly $205 billion AI infrastructure plan, but it also increases borrowing and raises questions about returns on capital. Strong demand for the bonds reduces near-term financing risk, although investors are likely to scrutinize spending discipline and future profitability. Alphabet Seeks Up to $25 Billion From Bond Sale
• Negative Sentiment: Alphabet is facing renewed concerns about its ability to lead in frontier AI after chief scientist Jeff Dean departed to launch a startup with other researchers, while DeepMind chief Demis Hassabis moved away from day-to-day management into a broader chief scientist role. The departures heighten fears of a talent drain and potential disruption to Gemini and other AI initiatives. Google Shakes Up AI Leadership
• Negative Sentiment: Commentary suggests Google Cloud’s commercial growth is competing for scarce computing resources and management attention with DeepMind’s longer-term AI research, adding execution risk as Alphabet attempts to scale both businesses. Alphabet’s Cloud Growth Straining Its Frontier AI Push

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.