Alphabet (NASDAQ:GOOGL) Receives a "Buy" Rating from Bank of America

Alphabet Inc. (NASDAQ:GOOGL) has been given a reaffirmed "buy" rating by analysts at Bank of America in a recent report. This announcement came out on Monday, and Bank of America has set a price target of $210.00 for the company’s shares. This price target indicates a potential increase of about 7.08% from the stock's last closing price.

Additionally, several other research firms have recently commented on Alphabet’s stock. For instance, Needham & Company LLC also reaffirmed a "buy" rating, establishing the same price objective of $210.00 for Alphabet shares on October 30. On the same day, JMP Securities raised their price target from $200.00 to $220.00 while assigning a "market outperform" rating. Similarly, the Goldman Sachs Group renewed their "buy" rating along with a price objective of $210.00 on December 12. Evercore ISI increased their price target from $200.00 to $205.00 and rated the stock as "outperform" on October 30, while KeyCorp raised their price target from $200.00 to $215.00, rating the stock as "overweight."

In terms of overall ratings, seven analysts have given Alphabet a hold rating, thirty-one have assigned it a buy rating, and four have given it a strong buy rating. According to information from MarketBeat.com, the stock currently has an average rating categorized as "Moderate Buy" with an average price target of $206.69.

Recent Trading Activity

On Monday, Alphabet’s stock opened at $196.11. Over the past year, the stock has reached a low of $130.66 and a high of $201.42. The company boasts a debt-to-equity ratio of 0.04, a current ratio of 1.95, and a quick ratio also of 1.95. The fifty-day moving average price stands at $175.14 while the 200-day moving average price is $171.42. Alphabet has a market capitalization of $2.40 trillion and a price-to-earnings (P/E) ratio of 26.01, with a P/E/G ratio of 1.39 and a beta of 1.01.

In its latest quarterly earnings announcement, which was disclosed on October 29, Alphabet reported earnings of $2.12 per share (EPS), exceeding analysts’ expectations of $1.83 by $0.29. The company reported a net margin of 27.74% and a return on equity of 31.66%. It recorded revenue of $88.27 billion for the quarter, which surpassed the consensus estimate of $72.85 billion. The earnings per share for the same quarter the prior year was $1.55. Analysts predict that Alphabet will achieve an EPS of 8.01 for the current fiscal year.

Insider Transactions

In related insider activity, Director Frances Arnold sold 441 shares of the stock on November 4 at an average price of $171.06, bringing in total proceeds of approximately $75,437.46. Following this transaction, Arnold now holds 16,490 shares of Alphabet, valued at around $2,820,779.40, reflecting a 2.60% decrease in ownership. The sale was reported to the Securities and Exchange Commission. In another transaction, Chief Accounting Officer Amie Thuener O’toole sold 2,834 shares on December 16 at an average price of $197.55, totaling about $559,856.70. The sale led to a decrease of 12.05% in O’toole’s holdings, leaving her with 20,681 shares valued at approximately $4,085,531.55. In the last 90 days, insiders have sold a total of 178,257 shares worth $31,243,187, and insiders collectively own 11.55% of the company’s stock.

Institutional Trading Activity

Recent activities by institutional investors and hedge funds show a trend of buying and selling shares of Alphabet. For example, Christopher J. Hasenberg Inc increased its holdings in the company by 75% during the second quarter, now owning 140 shares worth around $26,000 after acquiring 60 additional shares. LMR Partners LLP also bought shares in Alphabet during the third quarter, valued at approximately $32,000. Other institutional buyers include Kings Path Partners LLC and Quarry LP, investing amounts ranging from $36,000 to $53,000. Currently, institutional investors and hedge funds hold approximately 40.03% of Alphabet’s stock.

About Alphabet Inc.

Alphabet Inc. operates various platforms and products globally, providing services through its segments including Google Services, Google Cloud, and Other Bets. The Google Services segment encompasses a wide range of products such as ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

Alphabet, Stocks, Analysis