HS Management Partners LLC has significantly reduced its position in Alphabet Inc. (NASDAQ: GOOG), selling 214,505 shares during the third quarter of 2023. This move has trimmed its holdings by 50.5%, leaving the firm with 210,119 shares valued at approximately $51,175,000 at the end of September. Despite this reduction, Alphabet remains the largest position in HS Management’s portfolio, constituting about 6.6% of its total holdings.
The latest changes come amid a broader trend among institutional investors regarding Alphabet. Several firms have adjusted their stakes in the technology giant during the same period. For instance, tru Independence LLC increased its holdings by 3.3%, acquiring an additional 99 shares to own a total of 3,142 shares, valued at around $765,000. Spectrum Asset Management Inc. NB CA made a more substantial move, raising its stake by 91.5%, now holding 21,433 shares worth $5,220,000 after adding 10,242 shares.
Other notable adjustments include Baker Ellis Asset Management LLC, which boosted its holdings by 15.8%, now owning 34,560 shares valued at around $8,417,000, and Kingswood Wealth Advisors LLC, increasing its stake by 37.3% to 45,966 shares worth $11,195,000. Additionally, Atwater Malick LLC grew its position by 12.4%, acquiring 1,360 shares valued at approximately $331,000.
As of now, institutional investors collectively own 27.26% of Alphabet’s stock.
Analysts’ Views and Recent Developments
Recent analyst reports have generally been positive towards Alphabet, reflecting confidence in its future performance. BMO Capital Markets reaffirmed an “outperform” rating on October 30, 2023, with a target price of $340.00. Similarly, Weiss Ratings maintained a “buy (b)” rating, and Scotiabank raised its target price to $375.00 from $336.00 in early January 2024.
Overall, the stock has received a mix of ratings, with seven analysts issuing a “Strong Buy,” thirty providing a “Buy,” two recommending a “Hold,” and two suggesting a “Sell.” The consensus average rating stands at “Buy,” with a target price of $318.36, according to data from MarketBeat.com.
Key developments surrounding Alphabet indicate a positive sentiment in the market. The company’s recent collaboration with Apple and its achievement of a $4 trillion valuation have strengthened perceptions of its leadership in artificial intelligence. Analysts estimate potential annual licensing revenue from this partnership could reach around $1 billion.
Furthermore, Alphabet’s launch of the “Personal Intelligence” feature in the Gemini app aims to enhance user experience by delivering personalized answers, potentially boosting engagement and relevance in search and advertising.
Stock Performance and Financial Results
On October 30, 2023, Alphabet Inc.’s shares opened at $336.31. The company reported earnings of $2.87 per share for the quarter, surpassing analysts’ expectations of $2.29 by $0.58. Revenue for the quarter reached $102.35 billion, exceeding the projected $99.90 billion. The company enjoyed a net margin of 32.23% and a return on equity of 35.00%. Compared to the same period last year, Alphabet’s quarterly revenue grew by 15.9%.
In addition to strong earnings, Alphabet announced a quarterly dividend of $0.21 per share, which was paid on December 15, 2023, to stockholders of record as of December 8, 2023. This translates to an annualized payout of $0.84 and a modest dividend yield of 0.2%.
Insider trading activity has also been notable. John Kent Walker, an insider at Alphabet, sold 17,829 shares on December 30, 2023, at an average price of $314.89, totaling approximately $5.6 million. CAO Amie Thuener O’toole also sold 2,778 shares for about $800,786. These transactions reflect a significant decrease in their ownership percentages.
Alphabet Inc., headquartered in Mountain View, California, is a multinational technology holding company formed in 2015. It serves as the parent company to Google LLC and other businesses within its portfolio. Under the leadership of CEO Sundar Pichai, Alphabet continues to focus on its core internet search and advertising services while exploring new avenues for growth and innovation.
