Alphabet Inc. (GOOG): Follow The Insiders And Leave

Alphabet Inc. (NASDAQ:GOOG) is rated as Outperform by analysts at RBC Capital Mkts. The firm was pushed by the stock performance to change their PT view from $1285 to $1400 on July 24. Analysts at Oppenheimer, maintained the company shares at Outperform on July 24 but switched target price from $1350 to $1450. Brokerage firm Pivotal Research Group, looks cautious as they stick to prior recommendation of Hold, in a call on April 02. However, they did change the target price from $1110 to $1040. Needham, reiterated their call for Buy, on January 30. On the other hand, they had set new target price to $1350 versus $1150.

Alphabet Inc. (GOOG) hit an intraday high Thursday at $1106.4. The shares finished at $1079.32, after trading as low as $1068.27 earlier in the session. It dropped -0.18% in recent trade and currently has a stock-market value of $734.93B. Trading activity significantly improved as the volume at ready counter increased to 2,938,388 shares versus 1,659,530 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,667,355 shares. The stock is now 12.37% above against its bear-market low of $960.52 on October 25, 2017. It has retreated -18.03% since it’s 52-week high of $1273.89 reached in July. Now the market price is up 9.1% on the year and up 3.15% YTD.

GOOG’s 50 day simple moving average (SMA 50) price is $1193.66 and its 200-day simple moving average (SMA 200) price is $1127.47. The company’s stock currently has a total float of 603.57M shares. Its weekly volatility is hovering around 3.17% and felt 2.09% volatility in price over a month. On the upside, the share price will test short term resistance at around $1101.06. On a downside, the stock is likely to find some support, which begins at $1062.93. The failure to get near-term support could push it to $1046.53.

The insider holding in Alphabet Inc. (GOOG) stood at 5.75% while institutions hold 69.7%. Capital World Investors is the largest single holder among mutual funds with ownership of over 6.99M GOOG shares as of June 30, with a market value of approx. $7.8B as of today. The second largest holder, Capital Research Global Investors, with 6.45M shares which equates to $7.2B worth of the stock. At third is Northern Trust Corp, which stood pat with 4.08M shares, a 0.62% position in Alphabet Inc., worth $4.56B.

Separately, it has been reported that multiple insider activity took place at Alphabet Inc. (GOOG). CEO, Google LLC Pichai Sundar sold 10,000 shares for $85,415 in transaction occurred on 2018/10/03. After making this transaction, the CEO, Google LLC owns a direct stake of 12,000,400 shares, worth $92,190,118, as per the last closing price. On 2018/10/01 Mather Ann, Director at GOOG, dumped 25 shares at an average price of $1199.89 per share. The selling total is valued at $308,686.

CEO, Google LLC, Pichai Sundar had divested 10,000 shares for $102,498 through a trade on 2018/09/19. Following this activity, the insider holds 11,604,200 shares worth $111,000,000 as of recent close.Wall Street’s most bullish Alphabet Inc. (NASDAQ:GOOG) analysts are predicting the share price to blow past $1657.6 per share during the next 12 months. The current median share price forecast by them is $1402.5, suggesting that the stock could increase 29.94% in that time frame. The average price target of $1397.2 calls for a nearly 29.45% increase in the stock price.

When looking at valuations, Alphabet Inc. (GOOG) has a cheap P/E of 46.61x as compared to industry average of 64.51x. Moreover, it trades for 22.48 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.64x price/book and 5.93x price/sales.

Shares of Alphabet Inc. (GOOG) have dropped -10.3% since the company’s Dec-18 earnings report. GOOG last reported earnings on July 23, 2018 when it released Jun-18 results that exceeded expectations. The company raked in $11.75 per share, -47.99% change on the same period last year. That was better than consensus for $9.58. Revenue for the recent quarter stood at $32.66 billion, up 26% on last year and above the $32.17 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $38.38 billion to $40.18 billion, which should be compared with $36.4 billion generated last year. EPS is seen in a range of $9.28 to $12.48, against the $11.24 reported a year ago.