Alphabet Inc. Experiences Significant Decline in Short Interest

Alphabet Inc. (NASDAQ:GOOGL) has experienced a notable reduction 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 January 15th figure, which was 65,510,000 shares. With an average daily trading volume of 28,740,000 shares, the current days-to-cover ratio is approximately 2.1 days.

Insider Transactions

In other developments related to Alphabet, Chief Accounting Officer Amie Thuener O'toole sold 1,367 shares on December 2nd at an average price of $170.41, totaling $232,950.47. After this transaction, she holds 23,515 shares valued at around $4,007,191.15, reflecting a decrease of 5.49% in her holdings. This information is documented in a filing with 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 $3,239,868.40. Post-sale, he owns 43,981 shares worth $8,471,620.22, which indicates a 27.66% reduction in his stake. Over the last quarter, insiders sold 89,529 shares of Alphabet, amounting to $16,600,078. Insiders currently hold 11.55% of the company’s stock.

Institutional Investors' View

Several hedge funds and institutional investors have recently adjusted their stakes in Alphabet. Compass Planning Associates Inc acquired a new position worth approximately $30,000 in the fourth quarter. Similarly, LMR Partners LLP made a new investment in Alphabet valued at $32,000 in the third quarter. E Fund Management Hong Kong Co. Ltd. significantly increased its holdings by 518.8% in the fourth quarter, bringing its total to 198 shares valued at $37,000 after buying an additional 166 shares.

Moreover, Fiduciary Advisors Inc. also secured a new stake worth $39,000 during the fourth quarter, while PayPay Securities Corp raised its holdings in Alphabet by 36.1%, now owning 245 shares valued at $46,000 after acquiring 65 more shares. Overall, institutional investors own approximately 40.03% of Alphabet's stock.

Performance of Alphabet Stock

On a recent trading day, NASDAQ:GOOGL shares fell by $0.91, reaching $185.23, with a total volume of 20,399,117 shares compared to an average of 27,597,338. The stock has a 50-day moving average of $192.85 and a 200-day average of $175.20. Alphabet's financial ratios indicate a debt-to-equity ratio of 0.03, a quick ratio of 1.95, and a current ratio of 1.84. Additionally, the firm has a 12-month low of $130.66 and a high of $207.05, alongside a market capitalization of $2.27 trillion and a P/E ratio of 23.01.

On February 4th, Alphabet reported quarterly earnings showing $2.15 earnings per share (EPS), surpassing the consensus estimate of $2.12 by $0.03. The company achieved a return on equity of 32.49% and a net margin of 28.60%. Analysts predict Alphabet will record an EPS of 8.91 for the current year.

Dividend Declaration

Recently, Alphabet announced a quarterly dividend expected to be paid on March 17th. Shareholders on record as of March 10th will receive a dividend of $0.20 per share, equating to 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 current dividend payout ratio is 9.94%.

Analyst Outlook

Various brokerages have recently revised their price targets for Alphabet. Sanford C. Bernstein raised its target from $180.00 to $185.00 with a "market perform" rating as of October 30th. Piper Sandler adjusted its price target from $210.00 to $208.00, maintaining an "overweight" rating on February 5th.

In another analysis, Roth MKM lifted their target from $206.00 to $212.00 with a "buy" recommendation, while Loop Capital raised its target from $170.00 to $185.00, providing a "hold" rating. Meanwhile, JPMorgan Chase & Co. lowered its price target from $232.00 to $220.00, sustaining an "overweight" rating. Currently, ten analysts have rated the stock as a hold, twenty-nine have given a buy rating, and four have strongly recommended it. As per MarketBeat data, the stock enjoys a consensus rating of "Moderate Buy" with an average target price of $210.62.

About Alphabet

Alphabet Inc. provides a wide range of products and services globally, operating through several segments such as Google Services, Google Cloud, and Other Bets. The Google Services segment encompasses services including advertising, Android, Chrome, Gmail, Google Maps, Google Play, Search, and YouTube.

Alphabet, Short, Insider