StrongBox Wealth Reduces Stake in Alphabet Inc. by 9.3%

StrongBox Wealth LLC has decreased its holdings in Alphabet Inc. (NASDAQ: GOOGL) by 9.3% during the third quarter of 2023. The investment firm disclosed this reduction in a filing with the Securities and Exchange Commission, revealing that it now owns 35,548 shares of the technology giant after selling 3,641 shares. Alphabet constitutes 2.9% of StrongBox’s investment portfolio, making it the firm’s 10th largest holding.

As of the latest SEC filing, StrongBox’s stake in Alphabet is valued at approximately $8.64 million. This adjustment reflects a broader trend among significant institutional investors who actively buy and sell shares in Alphabet.

Several prominent investors have recently made notable changes to their positions in Alphabet. For instance, Norges Bank acquired a new stake valued at about $21.94 billion in the second quarter. Meanwhile, Laurel Wealth Advisors LLC significantly increased its position by 17,667.7%, now owning 15,245,075 shares worth approximately $2.69 billion after purchasing an additional 15,159,273 shares during the same period.

Similarly, Franklin Resources Inc. raised its holdings in Alphabet by 51.7%, acquiring 31,817,684 shares valued at about $5.61 billion. Vanguard Group Inc. also increased its stake by 1.3%, now owning 516,559,609 shares worth approximately $91.03 billion. Finally, Arrowstreet Capital Limited Partnership lifted its position by 201.3%, now holding 6,547,250 shares valued at around $1.15 billion. Collectively, institutional investors own 40.03% of Alphabet’s stock.

Recent Analyst Ratings and Market Performance

Alphabet shares have garnered attention from various analysts, with several recent upgrades. Bank of America raised its price target on Alphabet from $280.00 to $335.00, maintaining a “buy” rating. Similarly, Barclays reiterated an “overweight” rating with a new price target of $315.00, up from a previous $250.00. The consensus among analysts is notably positive, with four rating the stock as a Strong Buy, forty-one as Buy, and six as Hold. Currently, the average price target stands at $315.90, indicating a “Moderate Buy” rating according to MarketBeat.

On October 29, 2023, Alphabet reported quarterly earnings that surpassed expectations, with earnings per share (EPS) of $2.87, exceeding the consensus estimate of $2.29 by $0.58. The company’s revenue reached $102.35 billion, which also exceeded the expected $99.90 billion. Alphabet’s return on equity was reported at 35.00%, with a net margin of 32.23%.

Shares of Alphabet opened at $307.16 and experienced a 1.6% increase. The company has a market capitalization of $3.71 trillion, a price-to-earnings (P/E) ratio of 30.29, and a beta of 1.07. Over the past year, its stock has seen a low of $140.53 and a high of $328.83.

Dividend Declaration and Future Outlook

Alphabet also announced a quarterly dividend, which was paid on December 15, 2023. Shareholders of record on December 8 received a dividend of $0.21, translating to an annualized dividend of $0.84 and a yield of 0.3%. The company’s dividend payout ratio is currently 8.28%.

As Alphabet continues to diversify its portfolio and innovate in its core internet services, the focus remains on its growth potential, particularly in cloud computing and advertising technologies. The company operates under its parent entity, Alphabet Inc., focused on developing technologies beyond Google’s traditional offerings, including consumer hardware and enterprise solutions through Google Cloud.

Investors and analysts will be closely monitoring Alphabet’s performance in the upcoming quarters, especially in light of its strong earnings results and strategic investments in technology and infrastructure.