Alphabet (GOOGL) Downgraded by Zacks Investment Research to Hold

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

According to Zacks, “Alphabet's stock has outperformed the industry it belongs to on a 12-month basis. Alphabet's strong advertising revenues and improving paid click growth remain the growth drivers. Its focus on innovation, AI, cloud, home automation space, strategic acquisitions and Android OS should continue to generate strong cash flows. Alphabet has shown good execution to date, more or less maintaining its dominant share in a competitive, fast-growing search market. 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.”

GOOGL has been the topic of several other research reports. CIBC restated an “outperform” rating and set a $1,180.00 target price (up previously from $1,050.00) on shares of Alphabet in a research report on Friday, October 27th. Pivotal Research restated a “hold” rating and set a $970.00 target price on shares of Alphabet in a research report on Friday, October 13th. Citigroup restated a “buy” rating and set a $1,180.00 target price on shares of Alphabet in a research report on Tuesday, October 24th. They noted that the move was a valuation call. Vetr downgraded Alphabet from a “buy” rating to a “hold” rating and set a $1,007.29 price objective on the stock. in a research report on Friday, October 6th. Finally, Credit Suisse Group reiterated an “outperform” rating on shares of Alphabet in a research report on Wednesday, October 11th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, forty have assigned a buy rating and one has assigned a strong buy rating to the company. Alphabet currently has a consensus rating of “Buy” and an average price target of $1,098.90.

Alphabet (NASDAQ GOOGL) traded up $8.40 during trading hours on Wednesday, hitting $1,139.10. The company’s stock had a trading volume of 1,389,200 shares, compared to its average volume of 1,480,000. The stock has a market capitalization of $788,300.00, a P/E ratio of 37.94, a P/E/G ratio of 1.48 and a beta of 0.90. Alphabet has a 12-month low of $812.05 and a 12-month high of $1,148.88. The company has a current ratio of 5.77, a quick ratio of 5.73 and a debt-to-equity ratio of 0.03.

Alphabet (NASDAQ:GOOGL) last posted its earnings results on Thursday, October 26th. The information services provider reported $9.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.43 by $1.14. The firm had revenue of $22.27 billion for the quarter, compared to the consensus estimate of $21.94 billion. Alphabet had a return on equity of 14.26% and a net margin of 20.09%. During the same quarter in the prior year, the business posted $9.06 earnings per share. equities analysts forecast that Alphabet will post 32.36 earnings per share for the current year.

Several hedge funds and other institutional investors have recently bought and sold shares of GOOGL. State of Alaska Department of Revenue bought a new stake in shares of Alphabet in the second quarter worth about $102,000. Parkside Financial Bank & Trust grew its stake in shares of Alphabet by 39.6% in the second quarter. Parkside Financial Bank & Trust now owns 127 shares of the information services provider’s stock worth $118,000 after purchasing an additional 36 shares during the last quarter. Odey Holdings AG grew its stake in shares of Alphabet by 18.2% in the second quarter. Odey Holdings AG now owns 130 shares of the information services provider’s stock worth $121,000 after purchasing an additional 20 shares during the last quarter. Stelac Advisory Services LLC bought a new stake in shares of Alphabet in the third quarter worth about $126,000. Finally, Lloyds Banking Group plc bought a new stake in shares of Alphabet in the second quarter worth about $133,000. 33.57% of the stock is currently owned by institutional investors.

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About Alphabet

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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