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Alphabet Inc. (NASDAQ:GOOGL) Shares Sold by First Pacific Advisors LP

Alphabet Inc. (NASDAQ:GOOGL) Shares Sold by First Pacific Advisors LP

  • 23.03.2025 10:03
  • etfdailynews.com
  • Keywords: Alphabet Inc., First Pacific Advisors LP

First Pacific Advisors LP reduced its Alphabet Inc. holdings by 4.6%, selling 128,688 shares in Q4. The stock now makes up 7.3% of their portfolio. Other institutions also adjusted their positions, with some acquiring new stakes and others increasing holdings. Alphabet's stock is trading up 0.7%, with a market cap of $2 trillion, and analysts have set various price targets averaging around $210.59. The company recently announced a dividend of $0.20 per share and insiders sold a total of 93,048 shares over the last quarter.

Alphabet ProductsAlphabet ReportsAlphabet ServicesGOOGLsentiment_dissatisfied

Estimated market influence

Alphabet Inc.

Alphabet Inc.

Negativesentiment_dissatisfied
Analyst rating: Buy

First Pacific Advisors LP decreased its holdings in Alphabet Inc. by 4.6% in the fourth quarter, selling 128,688 shares. This indicates a reduction in investment, which could imply a negative sentiment or expectation about Alphabet's performance.

First Pacific Advisors LP

Positivesentiment_satisfied
Analyst rating: N/A

While First Pacific Advisors LP decreased its holdings in Alphabet Inc., it still holds the stock as its 2nd largest position, worth $509 million. This suggests a continued interest and investment in Alphabet despite the reduction.

Context

Analysis of Alphabet Inc. (NASDAQ:GOOGL) - Business Insights and Market Implications

Institutional Holdings and Trading Activity

  • First Pacific Advisors LP:

    • Decreased holdings in Alphabet by 4.6% in Q4.
    • Sold 128,688 shares, ending with 2,689,681 shares.
    • Alphabet represents 7.3% of the firm's portfolio, making it the 2nd largest position.
    • Holdings valued at $509,157,000 as of Q4 end.

  • Other Institutional Investors:

    • Compass Planning Associates Inc.: Acquired new stake worth $30,000 in Q4.
    • LMR Partners LLP: Acquired new stake worth $32,000 in Q3.
    • E Fund Management Hong Kong Co. Ltd.: Increased position by 518.8%, ending with 198 shares worth $37,000.
    • Fiduciary Advisors Inc.: Purchased new stake valued at $39,000 in Q4.
    • PayPay Securities Corp: Increased stake by 36.1%, ending with 245 shares worth $46,000.

  • Total Institutional Ownership:

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

Analyst Ratings and Price Targets

  • Consensus Rating: Moderate Buy.
  • Price Target: $210.59 (average of analyst estimates).
  • Analyst Reactions:
    • Roth Mkm: Reiterated "buy" with a price target of $220.00.
    • JMP Securities: Reiterated "market perform".
    • Bank of America: Reiterated "buy" with a price target of $210.00, downgraded from "buy" to "hold" by DZ Bank with a target of $198.00.
    • Needham & Company LLC: Reiterated "buy" with a price target of $225.00.

Financial Performance and Valuation

  • Stock Price: Opened at $163.99, with a one-year low of $147.22 and high of $207.05.
  • Market Capitalization: $2.00 trillion.
  • Financial Metrics:
    • PE Ratio: 20.37.
    • PEG Ratio: 1.34.
    • Beta: 1.02.
    • 50-day Moving Average: $182.57.
    • 200-day Moving Average: $176.51.
  • Earnings:
    • Q4 EPS: $2.15, beating estimates of $2.12.
    • Analysts expect 8.9 EPS for the current year.
  • Dividend:
    • Quarterly dividend of $0.20, annualized to $0.80.
    • Dividend Yield: 0.49%.
    • Payout Ratio: 9.94%.

Insider Trading and Ownership

  • Insider Sales:
    • Director John L. Hennessy sold 200 shares at an average price of $165.53, reducing ownership by 2.50%.
    • Another insider sold 16,820 shares at an average price of $192.62, reducing ownership by 27.66%.
  • Total Insider Sales: 93,048 shares valued at $17,374,274 over the last quarter.
  • Insider Ownership: 11.55% of the company’s stock is owned by insiders.

Market and Industry Implications

  • Competitive Dynamics: Alphabet faces intense competition in tech, cloud services, and AI. Companies like Amazon (AWS), Microsoft Azure, and Meta are key competitors.
  • Long-Term Effects: Alphabet’s focus on innovation (e.g., Google Cloud, YouTube) positions it for sustained growth, but regulatory scrutiny remains a risk.
  • Regulatory Impact: The tech sector is under increasing scrutiny globally, which could impact Alphabet’s business model and pricing power.
  • Investment Considerations: Strong fundamentals, high institutional ownership, and positive analyst sentiment suggest long-term potential, though volatility may persist due to macroeconomic factors.

Conclusion

Alphabet Inc. remains a dominant player in the tech industry with strong financial performance and innovation-driven growth. However, investor sentiment and regulatory risks could impact short-term valuations. The company’s ability to maintain its competitive edge and adapt to evolving market dynamics will be critical for sustained success.