HS Management Partners LLC has significantly reduced its investment in Alphabet Inc. by 50.5% during the third quarter of 2023, according to its latest 13F filing with the Securities and Exchange Commission. The firm now holds 210,119 shares of Alphabet’s stock after selling 214,505 shares within the quarter. This adjustment brings Alphabet to account for approximately 6.6% of HS Management Partners’ total portfolio, making it the largest position in their holdings, valued at around $51.2 million.
Several other institutional investors have also adjusted their positions in Alphabet recently. tru Independence LLC increased its holdings by 3.3% during the third quarter, now owning 3,142 shares worth $765,000. Meanwhile, Spectrum Asset Management Inc. NB CA raised its stake by an impressive 91.5%, now possessing 21,433 shares valued at $5.2 million after acquiring an additional 10,242 shares.
Baker Ellis Asset Management LLC and Kingswood Wealth Advisors LLC also made notable increases. Baker Ellis raised its holdings by 15.8%, owning 34,560 shares worth approximately $8.4 million, while Kingswood boosted its stake by 37.3%, now holding 45,966 shares valued at $11.2 million. Atwater Malick LLC grew its holdings by 12.4%, now owning 1,360 shares worth $331,000. Currently, institutional investors own 27.26% of Alphabet’s stock.
Recent Analyst Ratings and Market Performance
Alphabet has faced various analyst ratings recently, indicating mixed yet generally positive sentiment. BMO Capital Markets reaffirmed an “outperform” rating with a target price of $340.00 in a report dated October 30, 2023. Weiss Ratings also maintained a “buy (b)” rating, while Scotiabank raised its target from $336.00 to $375.00. Cantor Fitzgerald upgraded Alphabet from “neutral” to “overweight,” and Guggenheim reiterated a “buy” rating with a target price of $375.00.
In total, seven analysts have given Alphabet a Strong Buy rating, with thirty rating it as a Buy, two as Hold, and two as Sell. According to MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $318.36.
Key Developments Affecting Alphabet
Several recent developments are impacting Alphabet’s operational landscape. Notably, the company reached a $4 trillion valuation, buoyed by its leadership in artificial intelligence (AI) and a potential annual recurring revenue of approximately $1 billion from licensing agreements. Analysts are optimistic about the momentum generated by Apple’s recent deal, which could enhance the distribution of Alphabet’s Gemini AI across Apple devices.
On the product front, Google has launched a feature called “Personal Intelligence” in its Gemini app, aimed at enhancing user engagement by integrating data across various applications. This initiative is expected to improve search relevance and the effectiveness of paid AI services over time.
Challenges also lie ahead for Alphabet. Advocacy groups have pressured Apple and Google to remove certain applications from their app stores, increasing scrutiny around content moderation. Additionally, bottlenecks in grid connectivity for U.S. transmission are delaying data-center connections, which could hinder Google Cloud’s growth and raise operational costs.
On the stock performance front, as of October 30, 2023, Alphabet’s shares opened at $336.31, with a market capitalization of $4.06 trillion. The company’s 12-month high stands at $341.20, while the 12-month low is $142.66. Alphabet recently reported earnings of $2.87 per share for the quarter, surpassing analyst expectations of $2.29 and reflecting a revenue of $102.35 billion.
In addition, Alphabet has announced a quarterly dividend of $0.21 per share, payable to shareholders of record on December 8, 2023. This translates to an annualized dividend of $0.84 and a yield of 0.2%.
Insider trading activity has also been notable, with insider John Kent Walker selling 17,829 shares for approximately $5.61 million on December 30, 2023. This sale represents a 29.32% decrease in his ownership of Alphabet stock. Another insider, CAO Amie Thuener O’toole, sold 2,778 shares, reflecting a 19.14% decrease in her holdings.
Alphabet Inc., headquartered in Mountain View, California, continues to solidify its standing as a dominant player in the technology sector, particularly in internet search and advertising. The company, formed in 2015 as a part of Google’s corporate restructuring, is led by CEO Sundar Pichai, with the founders, Larry Page and Sergey Brin, remaining influential figures within the organization.
