Alberta Investment Management Cuts Stake in Alphabet by 17.6%

Alberta Investment Management Corp has reduced its holdings in Alphabet Inc. (NASDAQ: GOOGL) by 17.6% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the fund sold 101,700 shares, bringing its total shares to 475,000. Alphabet now constitutes 1.0% of Alberta Investment Management’s overall portfolio, positioning it as the firm’s sixth largest investment.

At the end of the reporting period, the total value of Alberta Investment Management’s stake in Alphabet stood at approximately $83.7 million. This decision aligns with broader trends among institutional investors regarding their positions in the technology sector.

Other institutional investors have actively adjusted their stakes in Alphabet recently. For instance, Guardian Wealth Management Inc. significantly increased its holdings by 242.9% in the first quarter, acquiring an additional 119 shares to now hold 168 shares valued at around $26,000. Similarly, IMA Advisory Services Inc. entered a new position worth about $28,000 during the same period.

Additionally, NBZ Investment Advisors LLC raised its stake by 85.7%, now owning 195 shares valued at $30,000, while CarsonAllaria Wealth Management Ltd. increased its holdings by 36.4%, now owning 251 shares valued at $44,000. Notably, MJT & Associates Financial Advisory Group Inc. also acquired a new stake valued at about $50,000. Overall, institutional investors now control 40.03% of Alphabet’s stock.

Analyst Ratings and Stock Performance

Recent analyst reports have shown a positive outlook for Alphabet. Needham & Company LLC raised its price target from $260.00 to $330.00 while maintaining a “buy” rating. KeyCorp reiterated an “overweight” rating with a revised target of $300.00, an increase from $265.00. Tigress Financial also upgraded their price objective to $280.00, marking it as a “strong-buy.”

As of now, Alphabet holds a consensus rating of “Moderate Buy” with an average price target of $307.84, according to MarketBeat.com. The stock opened at $319.95 on Friday and has seen fluctuations over the past year, with a low of $140.53 and a high of $328.83. Alphabet’s market capitalization is currently approximately $3.86 trillion.

Alphabet’s recent earnings report, released on October 29, 2023, showed $2.87 earnings per share (EPS), exceeding analyst expectations of $2.29 by $0.58. The company reported revenue of $102.35 billion for the quarter, surpassing projections of $99.90 billion. With a net margin of 32.23% and a return on equity of 36.08%, analysts anticipate that Alphabet will post 8.9 EPS for the current fiscal year.

Dividend Announcement and Insider Activity

In related news, Alphabet recently declared a quarterly dividend of $0.21 per share, scheduled for payment on December 15, 2023. Shareholders of record as of December 8 will receive this dividend, which translates to an annualized payout of $0.84 and a yield of 0.3%. The company’s payout ratio stands at 8.28%.

Insider trading has also been notable, with CEO Sundar Pichai selling 32,500 shares on November 19, 2023, at an average price of $296.64, totaling approximately $9.64 million. After this transaction, Pichai retains 2,304,619 shares valued at around $683.64 million. Meanwhile, CAO Amie Thuener O’toole sold 2,778 shares on November 17, 2023, for a total of $800,786.28.

In the past 90 days, insiders have sold a total of 225,072 shares worth around $58.07 million, with insiders now owning 11.64% of the company’s stock.

Alphabet Inc. continues to maintain a strong market presence across various sectors, including Google Services, Google Cloud, and other ventures. The company’s diverse offerings remain pivotal in its positioning within the global market.