Farallon Capital Management Sells 36.4% of Alphabet Shares in Q3

Farallon Capital Management LLC has significantly reduced its stake in Alphabet Inc. (NASDAQ: GOOG), cutting its holdings by 36.4% during the third quarter of 2023. According to a recent 13F filing with the Securities and Exchange Commission, Farallon now owns 1,120,940 shares of the technology giant after divesting 640,900 shares in the quarter. This adjustment means Alphabet accounts for approximately 1.1% of Farallon’s portfolio, ranking as its 26th largest position.

As of the end of the most recent quarter, Farallon’s holdings in Alphabet were valued at $273,005,000. Other institutional investors have also made notable changes to their positions in Alphabet recently. For instance, Norges Bank acquired a new stake in Alphabet during the second quarter valued at approximately $4.3 billion. Additionally, JPMorgan Chase & Co. increased its holdings by 8.6%, now owning 99,529,742 shares valued at $24.24 billion.

Vanguard Group Inc. added to its position by 1.3% in the second quarter, bringing its total holdings to 416,753,033 shares, worth $73.93 billion. Assenagon Asset Management S.A. also saw a significant increase, boosting its stake by 73.5% in the third quarter to own 9,808,152 shares valued at $2.39 billion. In a noteworthy move, Laurel Wealth Advisors LLC raised its position in Alphabet by an astounding 17,547.9% during the second quarter, now holding 4,122,727 shares worth $731.33 million. Overall, institutional investors and hedge funds collectively own 27.26% of Alphabet’s stock.

Market Analysis and Analyst Ratings

Several equities research analysts have recently issued assessments of Alphabet’s stock. DZ Bank upgraded the company to a “strong-buy” rating. UBS Group maintained a “neutral” rating while adjusting its price target from $345.00 to $348.00. Canaccord Genuity Group increased its price objective on Alphabet from $330.00 to $390.00 and assigned a “buy” rating.

Other analysts, such as Sanford C. Bernstein, reaffirmed a “market perform” rating with a price target of $345.00. Citigroup also maintained a “market outperform” rating. In total, nine analysts have given the stock a “strong buy” rating, while twenty-nine analysts have issued a “buy” rating, and three have suggested holding the stock. According to MarketBeat.com, Alphabet currently holds a consensus rating of “buy” with an average price target of $345.71.

Insider Transactions and Recent Developments

In insider trading activity, John Kent Walker, a company insider, sold 47,574 shares of Alphabet on February 17, 2023. The shares were sold at an average price of $301.45, totaling $14,341,182.30. Following this transaction, Walker now directly owns 13,227 shares, valued at approximately $3,987,279.15. This sale represented a decline of 78.25% in his ownership of the stock.

Similarly, Director Frances Arnold sold 112 shares on March 2, 2023, at an average price of $302.99, amounting to $33,934.88. After this transaction, Arnold retains 18,418 shares, valued at approximately $5,580,469.82, reflecting a 0.60% decrease in ownership. Over the past 90 days, insiders have sold 2,076,615 shares worth $107,809,111. Company insiders currently own 12.99% of Alphabet’s stock.

Looking ahead, Alphabet’s stock opened at $301.46 on Monday, with a market capitalization of $3.65 trillion. The stock has a P/E ratio of 27.89 and a 52-week low of $142.66 alongside a 52-week high of $350.15. The company last reported quarterly earnings on February 5, 2023, revealing earnings per share of $2.82, surpassing analysts’ expectations of $2.59. Revenue for the quarter was $113.83 billion, exceeding anticipated figures of $111.24 billion.

In a recent announcement, Alphabet declared a quarterly dividend of $0.21 per share, to be paid on March 16, 2023. This dividend represents an annualized total of $0.84 and a yield of 0.3%, with a payout ratio of 7.77%.

Alphabet Inc. serves as a multinational technology holding company based in Mountain View, California. Established in 2015 through a corporate restructuring of Google, Alphabet encompasses Google LLC and a range of businesses known as “Other Bets.” The company is primarily focused on internet search and advertising, with Google Search and its advertising platforms generating the bulk of its revenue.