Citizens Jmp Downgrades Alphabet (NASDAQ:GOOGL) to Hold

On January 4, 2025, analysts from Citizens Jmp announced the downgrade of Alphabet Inc. (NASDAQ: GOOGL) from a "strong-buy" rating to a "hold" rating, as reported by various financial news outlets.

In addition to this downgrade, other analysts have offered their insights on Alphabet’s stock performance. For example, Tigress Financial increased its price target for Alphabet from $210.00 to $220.00, maintaining a "strong-buy" rating as of September 26, 2024. Furthermore, Phillip Securities upgraded the rating of Alphabet shares to "strong-buy" in a report released on November 1, 2024. Pivotal Research also raised its price target from $215.00 to $225.00 while keeping a "buy" rating on October 30, 2024. Additionally, Loop Capital adjusted its price target upward from $170.00 to $185.00, designating the stock as a "hold" on November 6, 2024. Lastly, Needham & Company reiterated a "buy" rating with a $210.00 target price on the same date as Pivotal Research's update.

According to information from MarketBeat.com, a total of nine investment analysts have assigned a "hold" rating to the stock, while thirty analysts issued a "buy" rating, and four analysts indicated a "strong-buy" rating. This brings the consensus rating to "Moderate Buy" with an average price target of approximately $206.44.

Market Performance of Alphabet

Amidst these developments, GOOGL shares rose by 1.2%, opening at $191.79 on Thursday. The company boasts a considerable market capitalization of $2.35 trillion, and it operates with a price-to-earnings (P/E) ratio of 25.44. The price-to-earnings growth (P/E/G) ratio stands at 1.35, and the stock has a beta of 1.01, indicating its volatility in relation to the market. Over the past 50 days, the moving average is $179.71, while the 200-day moving average is $172.40. Alphabet's financial metrics include a quick ratio and current ratio of 1.95, alongside a minimal debt-to-equity ratio of 0.04. The stock has seen a low of $130.66 and a peak of $201.42 within the last year.

Alphabet’s recent quarterly earnings report was released on October 29, 2024, revealing that the company reported earnings of $2.12 per share, surpassing analysts' expectations of $1.83 by a margin of $0.29. The company generated revenue of $88.27 billion for the quarter, significantly exceeding the anticipated revenue of $72.85 billion. Alphabet’s net profit margin stood at 27.74%, with a return on equity of 31.66%. A year prior, the company registered earnings of $1.55 per share. Analysts predict an earnings per share (EPS) of 8.01 for the current fiscal year.

Insider Trading Updates

In recent insider trading news, John Kent Walker, an insider at Alphabet, sold 16,820 shares on December 30, 2024. The shares were sold at an average price of $192.62, leading to a total transaction value of approximately $3.24 million. Following this sale, Walker now holds 43,981 shares of Alphabet, valued at roughly $8.47 million, which reflects a 27.66% decrease in his position. This transaction was disclosed in a filing with the SEC.

Additionally, on October 15, 2024, the Chief Accounting Officer, Amie Thuener O’toole, sold 2,834 shares at an average price of $167.23, totalling around $473,929.82. Post-transaction, O’toole retains ownership of 26,349 shares worth approximately $4.41 million, marking a 9.71% reduction in her stock ownership. In total, insiders sold 155,887 shares worth about $28 million over the past three months, while corporate insiders currently own 11.55% of the company’s stock.

Institutional Investors Movements

Recent changes in holdings by institutional investors have been notable. For instance, Lantz Financial LLC raised its investment in Alphabet by 10.8% during the second quarter, owning 4,622 shares valued at $842,000 after acquiring an additional 452 shares. Spectrum Wealth Advisory Group LLC established a new position in Alphabet valued roughly at $218,000 during the same period. Vance Wealth Inc. boosted its stake in the company by 4%, acquiring 3,089 shares worth $563,000 with an additional purchase of 119 shares. Instrumental Wealth LLC also increased its position by 5%, now holding 2,084 shares valued at $349,000. Similarly, Patriot Financial Group Insurance Agency LLC raised its holdings by 8.1%, owning 30,087 shares worth $5.48 million. Overall, institutional investors own about 40.03% of Alphabet’s stock.

Overview of Alphabet Inc.

Alphabet Inc. is a multinational conglomerate that provides a variety of products and platforms on a global scale, including in regions such as the United States, Europe, the Middle East, Africa, and Asia-Pacific. Its core business operates through segments like Google Services, Google Cloud, and Other Bets, with Google Services encompassing a range of products such as advertising services, the Android operating system, web browsers like Chrome, Google Drive, Google Maps, YouTube, and more.

downgrade, stocks, analysis