Analysis of Gryphon Financial Partners LLC's Sale of Alphabet Inc. Shares

Key Facts and Data Points

• Gryphon Financial Partners LLC:

  • Sold 2,576 shares of Alphabet Inc. (NASDAQ:GOOGL) in the 4th quarter.
  • Reduced holdings by 6.1%, now owning 39,957 shares worth $7,564,000.
  • Alphabet makes up 1.1% of Gryphon’s portfolio, ranking as its 18th largest holding.

• Other Investors’ Activity:

  • Pettinga Financial Advisors LLC: Increased stake by 10.1%, now owning 2,186 shares worth $363,000.
  • BSW Wealth Partners: Boosted holdings by 11.3%, now owning 22,388 shares worth $3,713,000.
  • TrueWealth Advisors LLC: Grew position by 16.0%, now owning 4,955 shares worth $822,000.
  • Lansing Street Advisors: Increased holdings by 1.4%, now owning 8,388 shares valued at $1,391,000.
  • Blue Square Asset Management LLC: Lifted stake by 4.5%, now owning 23,403 shares worth $3,881,000.

• Institutional Ownership:

  • Institutional investors own 40.03% of Alphabet’s stock.

Market Performance and Financials

• Alphabet Stock:

  • Traded at $165.49 on Monday.
  • Market capitalization: $2.02 trillion.
  • P/E ratio: 20.56, PEG ratio: 1.34, Beta: 1.02.
  • One-year low: $140.03, one-year high: $207.05.
  • 50-day SMA: $185.70, 200-day SMA: $176.56.

• Earnings:

  • Q4 EPS: $2.15, beating estimates of $2.12.
  • Net margin: 28.60%, Return on Equity (ROE): 32.49%.
  • Analysts expect 8.9 EPS for the current fiscal year.

Dividend Announcement

• Alphabet announced a quarterly dividend of $0.20 per share, paid on March 17, 2025.
• Annualized dividend: $0.80, yield: 0.48%.
• Dividend payout ratio: 9.94%.

Analysts’ Sentiment

• Consensus Rating: “Moderate Buy” with an average price target of $210.62.
• Mixed analyst activity:
  • JMP Securities: Reiterated “market perform”.
  • Cantor Fitzgerald: Downgraded from $215 to $210, set “neutral”.
  • DZ Bank: Downgraded from “buy” to “hold”, price target $198.00.
  • Morgan Stanley: Lowered price target from $215 to $210, set “overweight”.
  • Goldman Sachs: Reiterated “buy”, price target $210.00.

Insider Trading and Ownership

• Insiders sold a total of 93,048 shares worth $17,374,274 in the last 90 days.
• Insider ownership: 11.55%.
• Notable insider sales:
  • Sold 16,820 shares at an average price of $192.62, total proceeds $3,239,868.40.
  • Director John L. Hennessy sold 200 shares at $165.53, total proceeds $33,106.00.

Competitive Dynamics and Strategic Considerations

• Alphabet operates in highly competitive markets across multiple segments:
  • Google Services: Dominant in search, ads, Android, Chrome, YouTube, etc.
  • Google Cloud: Growing presence in cloud computing.
  • Other Bets: Includes investments in emerging technologies and ventures.

Long-Term Effects and Regulatory Impacts

• Alphabet’s strong financial performance and diversified portfolio suggest long-term resilience.
• Regulatory scrutiny, particularly in antitrust, could impact future growth strategies.
• The company’s ability to maintain innovation and adapt to regulatory changes will be critical for sustained market leadership.

Conclusion

Gryphon Financial Partners’ reduction in Alphabet shares reflects a strategic shift in their portfolio allocation. However, the broader investor sentiment remains mixed, with some institutions increasing their stakes while others reduce exposure. Alphabet’s financial health, driven by robust earnings and a strong dividend yield, positions it as a key player in the tech sector. The company’s ability to navigate regulatory challenges and maintain innovation will be pivotal for long-term growth.