Alphabet Inc. (NASDAQ:GOOGL) is FJ Investments LLC’s 2nd Largest Position

Alphabet Inc. (NASDAQ:GOOGL) is FJ Investments LLC’s 2nd Largest Position

  • 16.03.2025 15:49
  • etfdailynews.com
  • Keywords: High Insider Selling

FJ Investments LLC increased its stake in Alphabet Inc., making it their second-largest holding at 9.1%. Insiders sold shares totaling $17.9 million over the last 90 days.

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Estimated market influence

Alphabet Inc.

Alphabet Inc.

Negativesentiment_dissatisfied
Analyst rating: Buy

Insider selling and reduced holdings by major investors may indicate lack of confidence in the company's future performance.

FJ Investments LLC

Positivesentiment_satisfied
Analyst rating: N/A

Increased stake indicates confidence in Alphabet's stock, potentially stabilizing its market position.

Context

Analysis of Alphabet Inc. (NASDAQ:GOOGL)

Key Facts and Data Points

  • FJ Investments LLC Stake:

    • FJ Investments increased its stake in Alphabet by 0.1% in Q4, holding 505,472 shares worth $95,686,000.
    • Alphabet represents 9.1% of FJ Investments' portfolio, making it the second-largest position.

  • Institutional Ownership:

    • Institutional investors own 40.03% of Alphabet’s stock.
    • Other notable investments include:
      • Compass Planning Associates Inc.: New position worth $30,000.
      • E Fund Management Hong Kong Co. Ltd.: Increased holdings by 518.8%, now owning 198 shares ($37,000).
      • PayPay Securities Corp.: Increased holdings by 36.1%, now owning 245 shares ($46,000).

  • Insider Activity:

    • CAO sold 2,834 shares at an average price of $197.55, reducing ownership by 12.05%.
    • Director sold 29,066 shares at an average price of $184.89, reducing ownership by 9.64%.
    • Total insider sales in last 90 days: 95,882 shares worth $17,934,130.
    • Insiders own 11.55% of the company’s stock.

  • Stock Performance:

    • Alphabet opened at $165.49 on Friday.
    • 50-day moving average: $185.70; 200-day moving average: $176.46.
    • 12-month price range: $140.03 (low) to $207.05 (high).
    • Market cap: $2.02 trillion.
    • P/E ratio: 20.56; PEG ratio: 1.34; Beta: 1.02.

  • Earnings and Dividends:

    • Q4 EPS: $2.15 (vs. analyst estimate of $2.12).
    • Net margin: 28.60%; Return on Equity: 32.49%.
    • Annualized dividend: $0.80 per share ($0.20 quarterly), yield: 0.48%.
    • Payout ratio: 9.94%.

  • Analyst Sentiment:

    • Average rating: “Moderate Buy”.
    • Price target: $210.62.
    • Recent ratings include:
      • Piper Sandler: Downgraded to $208 with “overweight” rating.
      • Needham & Company: Reaffirmed “buy” with $225 price target.
      • Stifel Nicolaus: Raised price target to $225 with “buy” rating.

Market Insights and Implications

  • Investor Sentiment:

    • FJ Investments’ stake increase highlights continued confidence in Alphabet’s long-term growth potential.
    • Insider selling suggests some executives may be evaluating portfolio adjustments or liquidity needs.

  • Competitive Dynamics:

    • Alphabet’s dominance in search, cloud, and advertising positions it as a key player in the tech sector.
    • Competitive pressures from other tech giants like Amazon, Microsoft, and Apple remain significant.

  • Strategic Considerations:

    • Alphabet’s focus on AI, Google Cloud, and emerging markets (e.g., Asia-Pacific) will likely drive future growth.
    • Regulatory scrutiny in areas like antitrust and data privacy could impact profitability.

  • Long-Term Effects:

    • Strong earnings performance and dividend payouts indicate a stable investment.
    • Alphabet’s ability to innovate and adapt to market trends will be critical for sustained growth.

  • Regulatory Impact:

    • Ongoing antitrust investigations in the U.S. and Europe pose risks to Alphabet’s business model.
    • Compliance costs and potential fines could impact short-term profitability.