Alphabet (NASDAQ:GOOG) Shares Rise 0.7% – Is It a Good Investment?

On January 5th, 2025, shares of Alphabet Inc. (NASDAQ:GOOG) increased by 0.7% during midday trading. The stock peaked at $194.50 before last trading at $192.01. Approximately 3,854,492 shares were exchanged during this time, marking a significant decrease of 63% from the average daily volume of 10,505,336 shares. The previous closing price was $190.63.

Wall Street Analysts Expect Growth

Several brokerage firms have recently shared their views on Alphabet’s stock. On September 10th, DA Davidson upgraded Alphabet to a “hold” rating. Conversely, Citizens Jmp downgraded the company from a “strong-buy” rating to a “hold” rating. In addition, Wells Fargo & Company raised their target price for Alphabet from $182.00 to $187.00 and assigned an “equal weight” rating on October 30th. JPMorgan Chase & Co. also increased their price target from $208.00 to $212.00, giving the stock an “overweight” rating. Furthermore, UBS Group raised their target from $187.00 to $192.00 and issued a “neutral” rating. Among analysts reviewing the stock, six have given it a hold rating, thirteen a buy rating, and three a strong buy rating. According to MarketBeat, the consensus rating stands at “Moderate Buy” with an average target price of $200.56.

Alphabet Stock Performance

Currently, the 50-day simple moving average for Alphabet is at $181.77, while the 200-day simple moving average is $173.99. The company boasts a market capitalization of $2.36 trillion, a price-to-earnings (P/E) ratio of 25.61, a P/E growth (P/E/G) ratio of 1.34, and a beta value of 0.99. Alphabet maintains a debt-to-equity ratio of 0.04, with both its current and quick ratios at 1.95.

In its latest earnings report released on October 29th, Alphabet announced earnings of $2.12 per share (EPS) for the quarter, exceeding the consensus estimate of $1.83 by $0.29. The company's revenue reached $88.27 billion, surpassing the anticipated $86.39 billion. Alphabet's return on equity was reported at 31.66%, with a net margin of 27.74%. The company’s revenue grew by 15.1% compared to the same quarter the previous year, where it reported an EPS of $1.55. Analysts predict that Alphabet will record an EPS of 8.02 for the current fiscal year.

Dividend Announcement by Alphabet

Recently, Alphabet declared a quarterly dividend, which was disbursed on December 16th. Stockholders recorded on December 9th received a $0.20 dividend. The ex-dividend date occurred on December 9th as well. This translates to an annualized dividend of $0.80, representing a yield of 0.41%. Currently, Alphabet’s dividend payout ratio stands at 10.61%.

Insider Trading Activity

In other news regarding Alphabet, Chief Accounting Officer Amie Thuener O’toole sold 2,834 shares on October 15th for an average price of $167.23, totaling approximately $473,929.82. After this transaction, O’toole retained 26,349 shares valued at about $4,406,343.27, reflecting a 9.71% reduction in her position. This sale was detailed in a filing with the Securities and Exchange Commission. Additionally, Director Frances Arnold sold 441 shares on November 4th at an average price of $171.06, resulting in a total of $75,437.46. Arnold now owns 16,490 shares worth approximately $2,820,779.40—a 2.60% decrease in her ownership. In total, corporate insiders have sold 155,887 shares valued at $27,996,356 over the past 90 days, with insiders owning 12.99% of Alphabet’s stock.

Institutional Investment in Alphabet

Recently, several hedge funds and institutional investors have adjusted their Alphabet holdings. FSB Premier Wealth Management Inc. raised its position by 48.9% in the second quarter, owning 13,492 shares valued at $2,475,000 after acquiring 4,433 shares. Cozad Asset Management Inc. also increased its holdings by 20.2%, bringing its total to 17,784 shares worth $3,262,000 after a purchase of 2,990 shares. Fortis Capital Advisors LLC raised its stake by 2.5%, now owning 20,879 shares valued at $3,830,000, while Weaver Capital Management LLC boosted its investments by 21.1%, owning 19,719 shares worth $3,617,000 after acquiring 3,436 additional shares. Lastly, Simon Quick Advisors LLC increased its holdings in Alphabet by 2.1%, totaling 33,433 shares worth $6,132,000 after purchasing an additional 695 shares in the last quarter. Institutional investors currently hold 27.26% of the company's stock.

Overview of Alphabet Inc.

Alphabet Inc. provides a variety of products and services across the globe, operating through segments such as Google Services, Google Cloud, and Other Bets. The Google Services segment includes crucial products and platforms, such as Google Ads, Android, Chrome, Gmail, Google Drive, Google Maps, Google Photos, Google Play, YouTube, and Google Search.

Alphabet, Investing, Growth