Alphabet Inc. (NASDAQ: GOOG): Hunting Genuine Value In Market Debris


BlackRock Fund Advisors recently announced the acquisition of new stake in Alphabet Inc. (NASDAQ:GOOG). The institutional investor has increased its shareholding in the Communication Services company by 0.95% to 13.34 million shares with purchase of 0.13 million shares. This fresh investment now brings its stake to 3.97% valued currently at $18.86 billion. In addition, T. Rowe Price Associates, Inc. (I. raised its holdings by 0.28 million to 12.52 million shares. And SSgA Funds Management, Inc. has lifted its position by 0.84% or 98084.0 shares – to 11.81 million shares.

With over 1.62 million Alphabet Inc. (GOOG) shares trading Thursday and a closing price of $1531.45 on the day, the dollar volume was approximately $2.48 billion. The shares have shown a positive weekly performance of 1.04% and its price on 07/30/20 gained nearly 0.62%. Currently, there are 686.47M common shares owned by the public and among those 613.29M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 41 analysts who have offered their price forecasts for GOOG have a consensus price objective of $1634.26. The analysts have set the share’s price value over the next 12 months at a high of $1975.00 and a low of $1237.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Alphabet Inc. stock is 1.60 for the next 12 months. The average price target is 4.25% above its last price level and an upside to the estimated low will see the stock lose -23.8% over that period. But an upside of 22.46% will see the stock hit the forecast high price target while mean target price for the stock is $1630.00.

Insiders at the company have transacted a total of 280 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 57 of these insider trades were purchases, accounting for 333,569 shares. Insider sales of the common stock occurred on 223 occasions, with total insider shares sold totaling 261,511 shares.

The top 3 mutual fund holders in Alphabet Inc. are Vanguard Total Stock Market Index, Government Pension Fund – Global, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 8.17 million shares of the company’s stock, all valued at over $11.55 billion. The company sold -0.17 million shares recently to bring their total holdings to about 2.43% of the shares outstanding. Government Pension Fund – Global bought 0.2 million shares to see its total holdings expand to 6.62 million shares valued at over $9.36 billion and representing 1.97% of the shares outstanding. Vanguard 500 Index Fund sold 4398.0 shares to bring its total holdings to over 6.1 million shares at a value of $8.62 billion. Vanguard 500 Index Fund now owns shares totaling to 1.81% of the shares outstanding.

Shares of Alphabet Inc. (NASDAQ: GOOG) opened at $1,497.00, down -$25.02 from a prior closing price of $1522.02. However, the script later closed the day at $1531.45, up 0.62%. The company’s stock has a 5-day price change of 1.04% and 13.55% over the past three months. GOOG shares are trading 14.54% year to date (YTD), with the 12-month market performance up to 25.87% higher. It has a 12-month low price of $1013.54 and touched a high of $1586.99 over the same period. Currently, 1.62 million shares have been traded, compared to an average intraday trading volume of 1.64 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.14%, 4.83%, and 12.92% respectively.

Institutional ownership of Alphabet Inc. (NASDAQ: GOOG) shares accounts for 70.62% of the company’s 686.47M shares outstanding. Mutual fund holders own 31.07%, while other institutional holders and individual stakeholders account for 38.92% and 13.50% respectively.

It has a market capitalization of $1051.29B. The stock’s trailing 12-month PE ratio is 30.89, while the earnings-per-share (ttm) stands at $49.57. The company has a PEG of 5.07. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.13% over the week and 2.53% over the month.

Analysts forecast that Alphabet Inc. (GOOG) will achieve an EPS of $8.34 for the current quarter, $10.75 for the next quarter and $54.9 for 2021. The lowest estimate earnings-per-share for the quarter is $5.73 while analysts give the company a high EPS estimate of $10.24. Comparatively, EPS for the current quarter was $14.21 a year ago. Earnings per share for the fiscal year are expected to decrease by -14.60%, and 31.20% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 41 brokerage firm advisors rate Alphabet Inc. (GOOG) as a “Strong Buy” at a consensus score of 1.60. Specifically, 33 Wall Street analysts polled rate the stock as a buy, while 4 of the 41 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the GOOG, a number of firms have released research notes about the stock. Deutsche Bank stated their Buy rating for the stock in a research note on July 28, 2020, with the firm’s price target at $1700-$1975. Pivotal Research Group coverage for the Alphabet Inc. (GOOG) stock in a research note released on April 29, 2020 offered a Buy rating with a price target of $1575. BMO Capital Markets was of a view on March 30, 2020 that the stock is Outperform, while Oppenheimer gave the stock Outperform rating on February 04, 2020, issuing a price target of $1530- $1620. Bernstein on their part issued Outperform rating on January 10, 2020.


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