Analysis of Shepherd Wealth Management's Investment in Alphabet Inc. (NASDAQ:GOOGL)

Key Facts and Figures

• Investment Details:

  • Shepherd Wealth Management Ltd Liability Co invested $2,422,000 in Alphabet Inc., acquiring 12,794 shares.
  • This investment represents 2.4% of their total holdings, making it the 12th largest position in their portfolio.

• Other Institutional Investments:

  • Compass Planning Associates Inc invested $30,000 in Alphabet during Q4.
  • LMR Partners LLP acquired a new stake valued at $32,000.
  • E Fund Management Hong Kong Co. Ltd increased its holdings by 518.8%, now owning 198 shares worth $37,000.
  • Fiduciary Advisors Inc invested $39,000 in Alphabet during Q4.
  • PayPay Securities Corp raised its position by 36.1%, now holding 245 shares worth $46,000.

• Market Ownership:

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

Alphabet Inc. Performance Metrics

• Stock Price:

  • Opened at $167.68 on Tuesday.
  • 50-day moving average: $182.10.
  • 200-day moving average: $176.73.
  • 1-year low: $147.22, 1-year high: $207.05.

• Financial Ratios:

  • Market capitalization: $2.04 trillion.
  • P/E ratio: 20.83, PEG ratio: 1.34, Beta: 1.02.
  • Current ratio: 1.84, Quick ratio: 1.84, Debt-to-equity ratio: 0.03.

• Earnings:

  • Alphabet reported $2.15 EPS for the latest quarter, beating estimates by $0.03.
  • Analysts expect 8.9 EPS for the current year.

Dividend Information

• Dividend Announcement:
  • Alphabet declared a quarterly dividend of $0.20, paid on March 17th to shareholders of record on March 10th.
  • Annualized dividend: $0.80, dividend yield: 0.48%.
  • Dividend payout ratio: 9.94%.

Analyst Ratings and Price Targets

• Consensus Rating:

  • MarketBeat assigns a "Moderate Buy" rating to Alphabet.
  • Average target price: $210.59.

• Recent Analyst Changes:

  • Citizens Jmp downgraded Alphabet from "strong-buy" to "hold".
  • Piper Sandler reduced the price target from $210.00 to $208.00, maintaining an "overweight" rating.
  • Bank of America reaffirmed a "buy" rating with a $210.00 target.

Insider Trading

• Insider Sales:

  • An insider sold 16,820 shares at an average price of $192.62, totaling $3,239,868.40, reducing their position by 27.66%.
  • Director John L. Hennessy sold 200 shares at $165.53, totaling $33,106.00, reducing his position by 2.50%.
  • Total insider sales in the last quarter: 93,048 shares worth $17,374,274.

• Insider Ownership:

  • Insiders own 11.55% of Alphabet's stock.

Business Overview

• Segments:
  • Google Services, Google Cloud, and Other Bets.
  • Products/services include ads, Android, Chrome, Gmail, Google Maps, Google Photos, Google Play, Search, and YouTube.

Market Implications and Competitive Dynamics

• Investor Sentiment:

  • Mixed signals from analyst ratings and insider sales suggest cautious optimism about Alphabet's future performance.

• Competitive Landscape:

  • Alphabet faces intense competition in the tech sector, particularly from other major players like Apple, Microsoft, and Amazon.

• Strategic Considerations:

  • The company's focus on AI, cloud computing, and innovation will be critical for maintaining its market leadership.

• Regulatory Risks:

  • Alphabet may continue to face scrutiny in antitrust and data privacy regulations, which could impact its business model and profitability.

Long-Term Effects

• Growth Opportunities:

  • Alphabet's expansion into AI, quantum computing, and other emerging technologies positions it for long-term growth.

• Financial Stability:

  • Strong financial metrics (e.g., high market cap, consistent earnings) suggest the company is well-positioned to weather economic downturns.

Conclusion

Shepherd Wealth Management's investment in Alphabet highlights the stock's appeal as a strategic holding despite broader market uncertainties. However, investors should monitor key factors such as earnings growth, competitive dynamics, and regulatory developments to assess long-term value.