Alphabet Inc. Sees Significant Drop in Short Interest

Alphabet Inc. (NASDAQ:GOOGL) experienced a notable decline in short interest during January. As of January 31st, the total short interest stood at 60,150,000 shares, marking an 8.2% decrease from the 65,510,000 shares reported on January 15th. With an average daily trading volume of 28,740,000 shares, the short-interest ratio now sits at approximately 2.1 days.

Insider Trading Activity

In related news concerning Alphabet, the Chief Accounting Officer, Amie Thuener O'Toole, sold 1,367 shares on December 2nd at an average price of $170.41, totaling roughly $232,950.47. After this sale, O'Toole retains a holding of 23,515 shares, valued at around $4,007,191.15, reflecting a decrease of 5.49% in their position. This transaction has been officially reported to the SEC. Additionally, insider John Kent Walker sold 16,820 shares on December 30th, at an average price of $192.62, for a total of about $3,239,868.40. Post-sale, Walker holds 43,981 shares worth $8,471,620.22, which indicates a 27.66% decline in their position. Over the last quarter, insiders have sold a total of 89,529 shares valued at $16,600,078. Insider ownership among company officials is currently at 11.55%.

Institutional Investor Activity

Several hedge funds and institutional investors have made adjustments to their holdings in Alphabet recently. For instance, Compass Planning Associates Inc entered a new investment in Alphabet valued at approximately $30,000 in the fourth quarter. LMR Partners LLP also acquired new shares in the third quarter, amounting to $32,000. Notably, E Fund Management Hong Kong Co. Ltd. boosted its holdings by 518.8% in the fourth quarter and now owns 198 shares valued at $37,000. Other significant purchases include Fiduciary Advisors Inc., which invested $39,000, and PayPay Securities Corp., increasing its stake by 36.1% to own 245 shares, worth $46,000. Institutional investors collectively own around 40.03% of Alphabet’s stock.

Stock Market Update

On trading days, shares of NASDAQ GOOGL saw a decrease of $0.91, reaching a price of $185.23. The trading volume was reported at 20,399,117 shares, which is below the average of 27,597,338 shares. The stock has performed with a 50-day simple moving average of $192.85 and a 200-day average of $175.20. Current financial metrics show a debt-to-equity ratio of 0.03, a quick ratio of 1.95, and a current ratio of 1.84. Over the past year, Alphabet's stock has seen a low of $130.66 and a high of $207.05. The company boasts a market capitalization of $2.27 trillion, a P/E ratio of 23.01, along with a price-to-earnings growth ratio of 1.39, and a beta of 0.99.

Recent Earnings Performance

Alphabet recently released its quarterly earnings report on February 4th, where it posted an EPS of $2.15, surpassing analysts’ consensus estimate of $2.12 by $0.03. The company maintained a return on equity of 32.49%, with a net margin of 28.60%. Analysts expect Alphabet to deliver 8.91 in earnings per share for the current fiscal year.

Dividend Information

The company also announced a quarterly dividend to be paid on March 17th. Shareholders on record as of March 10th will receive a dividend of $0.20 per share, translating into an annualized dividend of $0.80 and a yield of 0.43%. The ex-dividend date is also set for March 10th, and Alphabet's payout ratio currently stands at 9.94%.

Analyst Ratings and Price Targets

Several brokerages have recently updated their views on Alphabet. Sanford C. Bernstein has raised their target price from $180.00 to $185.00 while maintaining a "market perform" rating. Piper Sandler has reduced the target from $210.00 to $208.00 with an "overweight" rating. Roth Mkm increased their target from $206.00 to $212.00 and labeled it a "buy". Loop Capital and JPMorgan Chase & Co. have also adjusted their price targets, reflecting ongoing interest and analyses from the market. Currently, analysts show a consensus rating of "Moderate Buy" with an average target price of $210.62.

Company Overview

Alphabet Inc., the parent company of Google, operates various segments such as Google Services and Google Cloud. It provides a wide range of products across multiple regions globally, engaging customers through services like Google Search, YouTube, and Android.

Alphabet, Stocks, Investment