Analysis of Frontier Asset Management LLC’s Investment in Alphabet Inc. (NASDAQ:GOOGL)

Key Facts and Data Points:

• Frontier Asset Management LLC increased its stake in Alphabet Inc. by 28.4%, purchasing an additional 352 shares during the fourth quarter.
• Total holdings of Alphabet Inc.: 1,592 shares worth $301,000 at the end of Q4.
• Other institutional investors and hedge funds also showed activity:
  • Compass Planning Associates Inc.: Purchased a new position valued at $30,000.
  • LMR Partners LLP: Bought a new stake valued at $32,000 in Q3.
  • E Fund Management Hong Kong Co. Ltd.: Increased holdings by 518.8%, now owning 198 shares worth $37,000.
  • Fiduciary Advisors Inc.: Purchased a new position worth $39,000 in Q4.
  • PayPay Securities Corp: Increased stake by 36.1%, now owning 245 shares worth $46,000.
• Institutional ownership: 40.03% of Alphabet Inc. stock is owned by institutional investors.

Insider Trading:

• Director: Sold 200 shares at an average price of $165.53, reducing ownership by 2.50%.
• CAO: Sold 1,374 shares at an average price of $173.47, reducing ownership by 8.38%.
• Total insider sales: 93,048 shares worth $17,374,274 over the last quarter.
• Insider ownership: 11.55% of the company’s stock.

Analyst Sentiment:

• Roth Mkm: Reaffirmed “buy” rating with a price target of $220.00.
• KeyCorp: Downgraded price objective from $220.00 to $202.00, maintaining an “overweight” rating.
• DA Davidson: Increased price target from $190.00 to $200.00, with a “neutral” rating.
• Wells Fargo: Raised price objective from $187.00 to $190.00, maintaining an “equal weight” rating.
• Needham & Company LLC: Reaffirmed “buy” rating with a price target of $225.00.
• Consensus rating: “Moderate Buy” with an average price target of $210.59.

Stock Performance:

• Alphabet Inc. stock opened at $163.99 on Friday.
• 12-month low: $147.22, 12-month high: $207.05.
• Market capitalization: $2.00 trillion.
• P/E ratio: 20.37, PEG ratio: 1.34, Beta: 1.02.
• 50-day moving average: $182.57, 200-day moving average: $176.38.

Earnings and Dividend:

• Alphabet reported $2.15 EPS for the quarter, beating estimates of $2.12.
• Net margin: 28.60%, Return on Equity (ROE): 32.49%.
• Analysts predict 8.9 EPS for the current fiscal year.
• Alphabet announced a quarterly dividend of $0.20 per share, yielding 0.49% with a payout ratio of 9.94%.

Company Profile:

• Alphabet operates through three segments: Google Services, Google Cloud, and Other Bets.
• Key products/services: Ads, Android, Chrome, Gmail, Google Maps, Google Photos, Google Play, Search, YouTube, and more.

Market Implications and Business Insights:

• Institutional Buying: The increased stake by Frontier Asset Management and other institutions indicates confidence in Alphabet’s long-term growth potential.
• Analyst Sentiment: Mixed ratings suggest optimism tempered by cautiousness. The average price target of $210.59 implies room for stock appreciation.
• Competitive Dynamics: Alphabet faces competition from tech giants like Amazon, Microsoft, and Apple. Its dominance in search and advertising remains critical to maintaining market share.
• Long-Term Effects: Alphabet’s investments in AI, cloud computing, and emerging markets (e.g., Google Cloud) could drive future growth.
• Regulatory Risks: Ongoing antitrust scrutiny and data privacy regulations pose risks to Alphabet’s business model.

Conclusion:

Alphabet Inc. appears well-positioned for sustained growth, supported by strong earnings, institutional buying, and a favorable analyst consensus. However, insider sales and regulatory challenges could impact short-term performance. Strategic focus on innovation and market expansion will be key to maintaining its competitive edge.