Farmers & Merchants Investments Inc. has sold 14,147 shares of Alphabet Inc. (NASDAQ: GOOGL), reducing its holdings by 7.4% during the third quarter of 2023. After the sale, the firm now owns 177,793 shares of the technology giant, which represents approximately 1.2% of its total investment portfolio, making Alphabet its 17th largest position. The value of Farmers & Merchants Investments’ holdings in Alphabet stands at $43,221,000 as of the end of the quarter.
The investment landscape for Alphabet has seen significant activity from a variety of institutional investors. Notably, Norges Bank acquired a new stake valued at $21,944,208,000 during the second quarter. Additionally, Laurel Wealth Advisors LLC increased its holdings by an astonishing 17,667.7%, now owning 15,245,075 shares valued at approximately $2,686,640,000 after acquiring an additional 15,159,273 shares in the same period. Franklin Resources Inc. also raised its position by 51.7%, owning 31,817,684 shares worth $5,607,232,000.
The growing interest in Alphabet is further demonstrated by Vanguard Group Inc., which increased its holdings by 1.3%, now holding 516,559,609 shares valued at $91,033,300,000. Arrowstreet Capital Limited Partnership also made headlines with a 201.3% increase in its position, now owning 6,547,250 shares valued at $1,153,824,000. Overall, institutional investors now hold 40.03% of Alphabet’s stock.
Analyst Forecasts Indicate Positive Outlook
Wall Street analysts have been optimistic about Alphabet’s stock performance. Several firms have issued updated price targets, with Mizuho setting a target of $325.00, while Truist Financial raised its target to $350.00 and rated the stock as a “buy.” Furthermore, Arete Research increased its price objective from $300.00 to $380.00, also giving it a “buy” rating. Wells Fargo & Company adjusted its target price from $236.00 to $268.00, assigning an “equal weight” rating.
In total, four research analysts have given Alphabet a Strong Buy rating, while forty-two analysts have assigned a Buy rating, and six have issued a Hold rating. The consensus target price among analysts is $320.12, indicating a generally positive outlook.
Key Developments Impacting Alphabet
Recent news highlights several factors influencing Alphabet’s performance. The company’s robust strategy in artificial intelligence (AI) and cloud computing is drawing investor interest. Analysts posit that Alphabet’s advancements in AI hardware and its cloud services, particularly the integration of its Gemini product, could enhance revenue and profitability as AI adoption accelerates.
Samsung’s recent plan to double the number of devices utilizing Google’s Gemini features to approximately 800 million units is also seen as a significant milestone for mobile AI adoption. This partnership is expected to bolster engagement across Alphabet’s advertising and cloud services.
On the regulatory front, Alphabet faces challenges, including legal proceedings in Indonesia that could impact its reputation and market performance. Indonesian prosecutors have filed graft charges tied to a laptop procurement deal associated with Google, introducing potential risks for the company in the region.
As of October 29, 2023, Alphabet’s shares opened at $314.43. The stock has experienced a twelve-month low of $140.53 and a high of $328.83. The company boasts a market capitalization of $3.79 trillion and reported earnings of $2.87 per share for the latest quarter, surpassing analyst expectations.
In addition to its stock activities, Alphabet announced a quarterly dividend of $0.21 per share, which was paid on December 15, 2023. Investors who were on record by December 8, 2023 received this dividend, representing an annualized payout of $0.84 and a yield of 0.3%.
In insider trading, CEO Sundar Pichai sold 32,500 shares on December 15, 2023, amounting to approximately $9,743,500. Following this transaction, Pichai retains 2,239,619 shares valued at around $671,437,776.20. Additionally, Director Frances Arnold sold 102 shares on December 31, 2023, for a total of $31,971.90.
As Alphabet continues to navigate the complexities of the technology landscape, including market dynamics, analyst expectations, and regulatory challenges, its future performance remains a subject of keen interest for investors and analysts alike.
