Alphabet (NASDAQ:GOOGL) Stock Price Down 2.5% – Time to Sell?

Alphabet Inc. (NASDAQ:GOOGL)’s stock price traded down 2.5% during trading on Friday. The stock traded as low as $339.08 and last traded at $340.59. Approximately 28,076,419 shares changed hands during trading, a decline of 8% from the average session volume of 30,531,334 shares. The stock had previously closed at $349.22.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: JPMorgan raised its Alphabet price target to $425 from $420 and maintained an “overweight” rating, citing confidence that Google can continue benefiting from AI while defending its search franchise. JPMorgan Alphabet price target article
• Positive Sentiment: Recent commentary highlights accelerating Google Cloud growth, strong AI demand and Alphabet’s ability to monetize Gemini, search and cloud infrastructure. However, investors remain focused on whether those gains will offset the company’s spending requirements. Alphabet cloud and AI growth article
• Positive Sentiment: Waymo received approval to participate in Ontario’s automated-vehicle pilot program and is targeting a Toronto robotaxi launch in 2028, expanding Alphabet’s longer-term autonomous-driving opportunity. Waymo Toronto expansion article
• Neutral Sentiment: Google launched its Universal Cart shopping tool in the United States and signed a multiyear AI partnership with CNN, developments that could support commerce and enterprise AI adoption but are not expected to materially change near-term results. Google Universal Cart article
• Negative Sentiment: Multiple law firms are promoting a securities-fraud class action covering investors who purchased Alphabet securities from May 19 through July 16, with lead-plaintiff deadlines in late November and December. The announcements increase headline and potential liability risk, although they do not establish wrongdoing. Alphabet class action announcement
• Negative Sentiment: Investors continue to question Alphabet’s massive AI infrastructure bill, including a reported long-term computing arrangement with SpaceX. Higher costs could pressure free cash flow and returns if AI monetization does not keep pace. Google SpaceX computing contract article

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on GOOGL. Wall Street Zen lowered Alphabet from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Roth Capital reiterated a “buy” rating and issued a $440.00 target price (up from $435.00) on shares of Alphabet in a report on Thursday, July 23rd. Piper Sandler increased their target price on shares of Alphabet from $395.00 to $400.00 and gave the company an “overweight” rating in a research note on Monday, September 28th. BMO Capital Markets set a $465.00 target price on shares of Alphabet and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Finally, Phillip Securities upgraded shares of Alphabet from a “moderate buy” rating to a “strong-buy” rating in a research report on Monday, July 27th. Five analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Alphabet currently has an average rating of “Buy” and an average target price of $425.04.

Alphabet Stock Down 2.5%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. The stock has a market cap of $4.17 trillion, a price-to-earnings ratio of 17.11, a price-to-earnings-growth ratio of 1.01 and a beta of 1.21. The business’s 50 day moving average is $344.54 and its 200 day moving average is $351.40.

Alphabet (NASDAQ:GOOGL) last released its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.89 by $6.22. The company had revenue of $119.80 billion during the quarter, compared to analyst estimates of $117.07 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. Equities analysts expect that Alphabet Inc. will post 20.54 earnings per share for the current year.

Alphabet Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Monday, September 7th were given a dividend of $0.22 per share. The ex-dividend date was Friday, September 4th. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. Alphabet’s dividend payout ratio (DPR) is presently 4.42%.

Insider Buying and Selling

In related news, CAO Marsida Saraci sold 449 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $333.20, for a total transaction of $149,606.80. Following the transaction, the chief accounting officer directly owned 27,386 shares of the company’s stock, valued at approximately $9,125,015.20. The trade was a 1.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the company’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total transaction of $2,232,808.20. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 420,865 shares of company stock worth $8,293,477. 11.61% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alphabet

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EMC Capital Management acquired a new stake in shares of Alphabet in the fourth quarter worth $33,000. Lifetime Wealth Management P.C. bought a new stake in shares of Alphabet during the fourth quarter valued at approximately $32,000. Core Capital Management & Research inc. bought a new stake in shares of Alphabet during the second quarter valued at approximately $41,000. Intelligent Financial Strategies acquired a new position in shares of Alphabet in the third quarter valued at $41,000. Finally, Premier Financial Group acquired a new position in shares of Alphabet in the second quarter valued at $45,000. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Alphabet Company Profile

Alphabet Inc is a technology and internet services company best known as the parent company of Google. Its primary business, Google Services, includes online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a range of hardware and subscription products.

Alphabet also operates Google Cloud, which provides infrastructure, data analytics, cybersecurity, productivity software, and artificial intelligence services to businesses, governments, and other organizations.