Farmers & Merchants Investments Inc. has decreased its stake in Alphabet Inc. (NASDAQ: GOOGL) by 7.4% during the third quarter, as revealed in its latest filing with the Securities and Exchange Commission (SEC). The firm now holds 177,793 shares of the technology giant, following the sale of 14,147 shares in that period. Alphabet represents around 1.2% of Farmers & Merchants Investments Inc.’s total portfolio, making it the firm’s 17th largest investment. The value of its holdings in Alphabet stood at approximately $43.22 million at the end of the quarter.
Several other institutional investors have also made significant adjustments to their positions in Alphabet recently. For instance, Norges Bank acquired a new stake valued at $21.94 billion in the second quarter. Meanwhile, Laurel Wealth Advisors LLC dramatically increased its holdings by 17,667.7%, amassing 15,245,075 shares valued at $2.69 billion after purchasing an additional 15,159,273 shares. Franklin Resources Inc. raised its position in Alphabet by 51.7%, now owning 31,817,684 shares worth $5.61 billion.
Vanguard Group Inc. also increased its holdings, acquiring 6,733,278 shares to bring its total to 516,559,609 shares, valued at approximately $91.03 billion. Arrowstreet Capital Limited Partnership boosted its stake by 201.3%, owning 6,547,250 shares worth about $1.15 billion. Currently, institutional investors hold 40.03% of Alphabet’s stock.
Analysts Project Growth Amid Market Activity
Market analysts are optimistic about Alphabet’s future. Mizuho set a price target of $325.00 for Alphabet shares in a note published on October 30, 2023. Truist Financial followed suit, assigning a $350.00 target and a “buy” rating. Other analysts have increased their forecasts, with Arete Research raising its price objective from $300.00 to $380.00, while Wells Fargo & Company adjusted its target from $236.00 to $268.00. Sanford C. Bernstein also increased its target from $260.00 to $305.00.
The consensus rating for Alphabet is currently “Moderate Buy,” with an average target price of $320.12. Reports indicate that four analysts have given a Strong Buy rating, while 42 analysts rated it as a Buy, and six analysts issued a Hold rating.
Analysts are particularly encouraged by Alphabet’s advancements in artificial intelligence and cloud computing. The company’s rollout of AI products through Google Cloud, including the integration of its Gemini platform, is anticipated to improve revenue streams and margins going into 2026. Additionally, partnerships with major manufacturers like Samsung, which plans to double the number of devices featuring Google’s Gemini technology, are expected to enhance Alphabet’s market presence.
Stock Performance and Insider Activity
As of Wednesday, shares of Alphabet opened at $314.43. The company has experienced a twelve-month range with a low of $140.53 and a high of $328.83. Its market capitalization is reported at $3.79 trillion, with a P/E ratio of 31.01 and a P/E/G ratio of 1.75.
Alphabet’s most recent earnings report, released on October 29, 2023, showed an earnings per share (EPS) of $2.87, surpassing expectations of $2.29 by $0.58. The company reported revenues of $102.35 billion, exceeding the consensus estimate of $99.90 billion. Analysts predict that Alphabet will post an EPS of 8.9 for the current fiscal year.
In a recent dividend announcement, Alphabet declared a quarterly dividend of $0.21 per share, which was paid on December 15, 2023, to investors recorded on December 8, 2023. This represents an annualized dividend yield of 0.3%.
Insider trading activity has also captured attention, with CEO Sundar Pichai selling 32,500 shares on December 15, 2023, for approximately $9.74 million. Following this transaction, he holds 2,239,619 shares valued at around $671.44 million. Additionally, Director Frances Arnold sold 102 shares for about $31,972 on December 31, 2023. Over the last ninety days, insiders sold 192,687 shares worth a total of $56.26 million.
Alphabet Inc., established in 2015, oversees Google and various subsidiaries focused on technologies beyond its core internet services. Alphabet’s operations are primarily driven by Google, which offers popular consumer products and advertising platforms that historically contribute to the majority of its revenue. The company is also expanding its investments in cloud computing and enterprise services.
