Alphabet (NASDAQ:GOOG) Shares Down 6.9% After Analyst Downgrade

Alphabet Inc. (NASDAQ:GOOG)’s share price fell 6.9% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $460.00 to $420.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Alphabet traded as low as $314.89 and last traded at $318.34. 44,827,616 shares changed hands during trading, an increase of 108% from the average session volume of 21,586,648 shares. The stock had previously closed at $341.91.

A number of other equities analysts also recently commented on GOOG. BMO Capital Markets lifted their price objective on Alphabet from $455.00 to $465.00 and gave the stock an “outperform” rating in a research report on Thursday. Phillip Securities downgraded Alphabet from a “strong-buy” rating to a “moderate buy” rating in a research note on Wednesday, April 15th. Raymond James Financial reissued a “strong-buy” rating on shares of Alphabet in a report on Thursday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Alphabet in a research note on Friday, July 17th. Finally, Roth Capital increased their price target on Alphabet from $435.00 to $440.00 and gave the stock a “buy” rating in a report on Thursday. Five analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $410.09.

Insider Buying and Selling at Alphabet

In related news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $23.75, for a total transaction of $2,077,531.25. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Marsida Saraci sold 449 shares of the firm’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $341.72, for a total value of $153,432.28. Following the transaction, the chief accounting officer owned 27,348 shares of the company’s stock, valued at $9,345,358.56. This trade represents a 1.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 159,415 shares of company stock valued at $7,672,279. Corporate insiders own 12.99% of the company’s stock.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s Q2 results were strong, with revenue, EPS, Search, YouTube, and Cloud all showing solid growth, while Gemini usage and AI demand continued to scale. Google quarterly cloud revenue growth beats expectations
• Positive Sentiment: Several analysts remained bullish despite the pullback, with upgrades and price targets such as JPMorgan, TD Cowen, RBC, BMO, and Pivotal pointing to significant upside from current levels.
• Positive Sentiment: Google Cloud CEO Thomas Kurian said existing customers are spending about 50% more than their initial commitments, easing some concerns that AI spending will fail to generate demand. Google Cloud CEO Kurian says customers are spending 50% more as segment blows away expectations
• Neutral Sentiment: Alphabet disclosed a large stake in SpaceX, which highlights the value of its investments but is not a core operating-driver for the stock today.
• Negative Sentiment: Alphabet’s first negative free cash flow and higher capex guidance have raised concerns that AI infrastructure spending is getting ahead of near-term returns. Alphabet’s cash burn raises alarm for Big Tech as AI spending climbs
• Negative Sentiment: The European Union fined Google about €890 million ($1 billion) over Search and Play Store practices, adding another regulatory overhang. EU hits Google with $1 billion fine over its Play app store and search
• Negative Sentiment: Reports that Alphabet is pausing stock buybacks while funding AI buildout further reinforce the view that capital returns may be limited for now.

Hedge Funds Weigh In On Alphabet

Several institutional investors have recently modified their holdings of GOOG. Providence Wealth Advisors LLC lifted its position in shares of Alphabet by 0.3% during the 1st quarter. Providence Wealth Advisors LLC now owns 10,508 shares of the information services provider’s stock worth $3,094,000 after purchasing an additional 29 shares during the last quarter. One Charles Private Wealth Services LLC increased its position in Alphabet by 0.6% in the 1st quarter. One Charles Private Wealth Services LLC now owns 4,844 shares of the information services provider’s stock worth $1,390,000 after buying an additional 29 shares during the period. Wisconsin Wealth Advisors LLC lifted its holdings in shares of Alphabet by 1.3% during the second quarter. Wisconsin Wealth Advisors LLC now owns 2,223 shares of the information services provider’s stock worth $785,000 after buying an additional 29 shares during the last quarter. Ring Mountain Capital LLC lifted its holdings in shares of Alphabet by 0.9% during the fourth quarter. Ring Mountain Capital LLC now owns 3,554 shares of the information services provider’s stock worth $1,174,000 after buying an additional 30 shares during the last quarter. Finally, Cannon Financial Strategists Inc. boosted its position in shares of Alphabet by 1.9% in the fourth quarter. Cannon Financial Strategists Inc. now owns 1,589 shares of the information services provider’s stock valued at $499,000 after acquiring an additional 30 shares during the period. Institutional investors and hedge funds own 27.26% of the company’s stock.

Alphabet Stock Down 6.9%

The firm has a 50-day moving average price of $363.69 and a two-hundred day moving average price of $337.49. The company has a market capitalization of $3.86 trillion, a P/E ratio of 24.28, a PEG ratio of 1.43 and a beta of 1.23. 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) last announced its earnings results on Thursday, July 23rd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.88 by $6.23. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.06 billion. During the same quarter in the previous year, the firm posted $2.31 earnings per share. Alphabet’s revenue was up 24.2% compared to the same quarter last year. Equities research analysts anticipate that Alphabet Inc. will post 14.34 EPS for the current fiscal year.

Alphabet Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 8th were issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Monday, June 8th. This is a positive change from Alphabet’s previous quarterly dividend of $0.21. Alphabet’s payout ratio is presently 6.71%.

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.