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Alphabet Inc. (NASDAQ:GOOGL) is Saturna Capital Corp’s 7th Largest Position

Alphabet Inc. (NASDAQ:GOOGL) is Saturna Capital Corp’s 7th Largest Position

  • 24.03.2025 09:47
  • etfdailynews.com
  • Keywords: High Risk

Saturna Capital Corp increased its Alphabet Inc. holdings by 0.1% in Q4, owning 1.4 million shares worth $271 million. Analysts rate Alphabet a "Moderate Buy" with a target price of $210.59. Insiders sold 93,048 shares over the last 90 days, while the company maintains a market cap of $2 trillion and pays a quarterly dividend of $0.20 per share.

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Estimated market influence

Context

Analysis of Alphabet Inc. (NASDAQ:GOOGL)

Market Position & Holdings

  • Saturna Capital Corp increased its holdings in Alphabet by 0.1% in the 4th quarter, owning 1,432,421 shares worth $271,157,000.
  • Alphabet represents ~3.7% of Saturna Capital Corp’s portfolio, making it their 7th largest holding.
  • Other hedge funds like Compass Planning Associates Inc, LMR Partners LLP, and E Fund Management Hong Kong Co. Ltd. also increased their positions in Alphabet during the 4th quarter.

Analyst Sentiment

  • 10 analysts have rated Alphabet with a "Hold", 29 with a "Buy", and 4 with a "Strong Buy".
  • The average rating is "Moderate Buy", with a consensus price target of $210.59.
  • Notable upgrades:
    • Wedbush raised their price target to $220 (from $210) and maintained an "outperform" rating.
    • Wolfe Research increased their target to $230 (from $220) and maintained an "outperform" rating.
  • Piper Sandler downgraded their target to $208 (from $210) but maintained an "overweight" rating.

Insider Activity

  • Insiders sold 93,048 shares worth $17,374,274 over the last 90 days.
  • John L. Hennessy, Director, sold 200 shares at an average price of $165.53, reducing his position by 2.50%.
  • CAO sold 1,368 shares at an average price of $191.55, reducing their position by 6.20%.

Price Performance & Valuation

  • Alphabet stock opened at $163.99 on Monday.
  • 52-week price range: $147.22 (low) to $207.05 (high).
  • Market capitalization: $2.00 trillion.
  • Key metrics:
    • P/E ratio: 20.37
    • PEG ratio: 1.34
    • Beta: 1.02
    • Debt-to-equity ratio: 0.03
    • Quick ratio: 1.84
    • Current ratio: 1.84

Earnings & Dividend

  • Alphabet reported $2.15 EPS for the last quarter, beating estimates of $2.12.
  • Net margin: 28.60%, Return on Equity (ROE): 32.49%.
  • The company declared a quarterly dividend of $0.20 per share, yielding 0.49% annually.
  • Dividend payout ratio (DPR): 9.94%.

Strategic Considerations & Competitive Landscape

  • Alphabet’s dominance in search, digital advertising, and cloud services positions it as a key player in the tech sector.
  • The company faces competition from Amazon, Apple, and Microsoft in cloud computing and AI-driven innovations.
  • Alphabet’s "Other Bets" segment (e.g., Verily, Waymo) represents high-growth opportunities but also carries significant risk.

Long-Term Effects & Regulatory Impact

  • Alphabet’s strong financial position (market cap of $2 trillion, robust earnings growth) suggests long-term resilience.
  • The company’s dividend policy provides stability for income-focused investors.
  • Potential regulatory risks in the U.S. and Europe could impact Alphabet’s competitive advantage in antitrust and data privacy.

Conclusion

Alphabet Inc. remains a dominant player in the tech sector, supported by strong earnings, institutional buying, and positive analyst sentiment. However, insider sales and regulatory scrutiny pose potential risks. The company’s ability to maintain its competitive edge in AI, cloud services, and other emerging areas will be critical for sustained growth.