Alphabet Inc. (NASDAQ:GOOGL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.

According to Zacks, “Alphabet is one of the leading providers of target-based advertisements on the web. The company delivered strong top line in the third quarter on the back of higher overall advertising revenues and strong paid click growth. On a year to date basis, the stock has outperformed the industry it belongs to. Alphabet has shown good execution to date, more or less maintaining its dominant share in a competitive, fast-growing search market. Its focus on innovation, AI, cloud, home automation space, strategic acquisitions and Android OS should continue to generate strong cash flows. Its diversification strategy is also positive, but requires significant investment and involves uncertain payback periods, particularly since these efforts are at the cutting edge of technology. However, increasing litigation issues could continue to impact the company’s profits.”

Several other research firms have also recently weighed in on GOOGL. Stifel Nicolaus reissued a “buy” rating and issued a $1,075.00 price objective on shares of Alphabet in a research report on Monday, September 25th. UBS AG reaffirmed a “buy” rating and issued a $1,080.00 target price on shares of Alphabet in a research report on Friday, September 8th. Jefferies Group LLC reaffirmed a “buy” rating and issued a $1,200.00 target price on shares of Alphabet in a research report on Tuesday, October 10th. They noted that the move was a valuation call. Mizuho reaffirmed a “buy” rating on shares of Alphabet in a research report on Tuesday, October 17th. Finally, Vetr cut Alphabet from a “buy” rating to a “hold” rating and set a $1,007.29 target price for the company. in a research report on Friday, October 6th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, thirty-nine have assigned a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $1,088.02.

Alphabet (NASDAQ:GOOGL) last posted its quarterly earnings data on Thursday, October 26th. The information services provider reported $9.57 earnings per share for the quarter, beating the consensus estimate of $8.43 by $1.14. Alphabet had a return on equity of 14.26% and a net margin of 20.09%. The company had revenue of $22.27 billion during the quarter, compared to analysts’ expectations of $21.94 billion. During the same period in the prior year, the business earned $9.06 earnings per share.

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Hedge funds have recently made changes to their positions in the stock. Novare Capital Management LLC increased its position in Alphabet by 0.9% in the second quarter. Novare Capital Management LLC now owns 8,590 shares of the information services provider’s stock worth $7,986,000 after purchasing an additional 80 shares during the period. Camelot Portfolios LLC acquired a new stake in Alphabet in the second quarter worth about $211,000. Country Trust Bank acquired a new stake in Alphabet in the second quarter worth about $44,071,000. Girard Partners LTD. increased its position in Alphabet by 10.7% in the first quarter. Girard Partners LTD. now owns 4,528 shares of the information services provider’s stock worth $3,839,000 after purchasing an additional 439 shares during the period. Finally, Anchor Capital Advisors LLC increased its position in Alphabet by 3.0% in the second quarter. Anchor Capital Advisors LLC now owns 378 shares of the information services provider’s stock worth $351,000 after purchasing an additional 11 shares during the period. Hedge funds and other institutional investors own 33.87% of the company’s stock.

Alphabet Company Profile

Alphabet Inc is a holding company. The Company’s businesses include Google Inc (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives.

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