Alphabet Inc. (NASDAQ: GOOGL) Sees 7.6% Decrease in Short Interest for December

Alphabet Inc. (NASDAQ:GOOGL - Get Free Report) experienced a notable reduction in short interest during December. By the end of the month, on December 31st, the total short interest stood at 65,560,000 shares. This marked a decrease of 7.6% compared to the 70,960,000 shares shorted as of December 15th. The days-to-cover ratio, which indicates how long it would take to cover all short positions based on average daily trading volume, is currently 2.4 days as the average daily volume is 27,510,000 shares.

Wall Street Analysts Forecast Growth

In addition to the drop in short interest, several Wall Street analysts have recently made positive remarks about GOOGL. Pivotal Research raised its price target for Alphabet from $215.00 to $225.00 while maintaining a "buy" rating as of October 30th. Further, JPMorgan Chase & Co. elevated its price objective on Alphabet from $212.00 to $232.00 and rated the stock as "overweight" on December 18th. KeyCorp also increased its price target from $215.00 to $225.00, confirming an "overweight" rating in a research report dated January 10th. The Goldman Sachs Group reaffirmed the "buy" stance and set a price target of $210.00 on December 12th. JMP Securities issued a "market perform" rating in a note on January 10th. Currently, nine analysts rate the stock as a hold, thirty give it a buy rating, and four assign a strong buy rating, leading to a consensus rating of "Moderate Buy" with an average target price of $208.15.

Alphabet Stock Performance

On a positive note, Alphabet's stock saw an uptick of 1.6%, trading up by $3.09 to reach $196.00 during midday trading. During this session, 27,621,897 shares changed hands, exceeding the average trading volume of 23,105,888 shares. Over the last year, the company’s stock has seen a low of $130.66 and a high of $201.42. Key financial metrics showcase a debt-to-equity ratio of 0.04, and both the quick and current ratios are at 1.95. With a market capitalization of $2.40 trillion, Alphabet has a price-to-earnings (PE) ratio of 25.99 and a P/E/G ratio of 1.22. The stock's moving averages stand at $184.43 for the 50-day and $173.42 for the 200-day period.

Recent Earnings Report

Alphabet's latest earnings report, communicated on October 29th, highlighted better-than-expected results. The information services provider reported earnings of $2.12 per share, exceeding analysts' consensus estimate of $1.83 by $0.29. Revenue reached $88.27 billion, well above predictions of $72.85 billion. The return on equity was recorded at 31.66%, with a net margin of 27.74%. In comparison to the same quarter last year, where earnings per share were $1.55, analysts predict Alphabet will achieve 8.03 earnings per share for the current fiscal year.

Dividend Announcement

Alphabet also declared a quarterly dividend, which was distributed on December 16th. Shareholders of record as of December 9th received a dividend of $0.20 per share. With this declaration, Alphabet maintains an annualized dividend of $0.80, yielding 0.41%. The company’s dividend payout ratio is reported at 10.61%.

Insider Trading Activity

On the insider trading front, Director Kavitark Ram Shriram sold 37,134 shares on December 10th, at an average price of $185.02—totaling approximately $6,870,532.68. Following this sale, he retains ownership of 282,832 shares valued at around $52,329,576.64, indicating a decrease of 11.61% in his total holdings. CAO Amie Thuener O'toole sold 1,367 shares on November 1st for an average price of $171.42. Following her transaction, she owns 26,349 shares worth approximately $4,516,745.58, reflecting a 4.93% decrease in her stock position. Insiders have collectively sold 133,387 shares valued at $24,368,654 over the past ninety days, with company insiders holding 11.55% of the total shares.

Institutional Investor Activity

Various hedge funds and institutional investors have adjusted their positions in Alphabet recently. Smallwood Wealth Investment Management LLC took a new stake in Alphabet valued at $220,000 during the 4th quarter. New Century Financial Group LLC increased its holdings by 43.4%, acquiring an additional 6,160 shares to reach 20,348 shares worth $3,902,000. FCG Investment Co and Lifestyle Asset Management Inc. also raised their stakes, owning $5,749,000 and $2,051,000 in shares, respectively. Yeomans Consulting Group Inc. further increased its holdings by 2.0%. The insider ownership by hedge funds and institutional investors currently stands at 40.03% of Alphabet’s stock.

About Alphabet Inc.

Alphabet Inc., the parent company of Google, is a key player in various technology sectors, offering products and services across the globe. Its primary segments include Google Services, Google Cloud, and Other Bets, encompassing a wide range of products like ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, YouTube, and more.

Alphabet, Stocks, Investment