Goldman Sachs Lowers Price Target for Alphabet to $208.00

Goldman Sachs has recently revised its price target for Alphabet Inc. (NASDAQ: GOOGL) from $217.00 to $208.00, as stated in a research report released on Monday. Despite this decrease, the firm maintains a "buy" rating for the stock, indicating confidence in its future performance. This new target suggests a potential upside of approximately 26.92% from Alphabet's last closing price.

Research Analyst Insights

Several other analysts have also shared their views on Alphabet's stock. TD Securities raised its price target for Alphabet from $200.00 to $220.00 back on July 10. Additionally, DA Davidson initiated coverage on the stock with a "neutral" rating and set a price objective of $170.00, effective from September 10. Another firm, Cantor Fitzgerald, reiterated a "neutral" rating with a $190.00 price target as of October 7. Meanwhile, Argus increased its price objective to $215.00 while maintaining a "buy" rating on the stock.

As it stands, a total of eight analysts have rated Alphabet with a hold rating, while twenty-nine have recommended buying the stock. Notably, four analysts have assigned a strong buy rating. According to data from MarketBeat, Alphabet holds an average rating classified as a "Moderate Buy," with an average price target of $201.13.

Alphabet's Recent Performance

On the trading floor, Alphabet's stock opened at $163.88 on Monday. Over the past year, the stock has seen a low of $120.21 and a high of $191.75. The company showcases impressive financial metrics, including a market capitalization of $2.03 trillion, a price-to-earnings (P/E) ratio of 25.12, and strong liquidity ratios with a current and quick ratio of 2.08. The 50-day simple moving average stands at $161.37, while the 200-day average is at $167.86.

Quarterly Earnings Report

In its latest earnings report released on July 23, Alphabet reported earnings per share (EPS) of $1.89, which exceeded analyst expectations of $1.85. The company achieved a net margin of 26.7% and a return on equity of 30.49%. Total revenue for the quarter amounted to $84.74 billion, significantly above the predicted $70.60 billion. This signifies a substantial growth compared to the same quarter last year when it reported an EPS of $1.44.

Insider Trading Activities

Recent transactions involving company insiders reveal some selling activities. CEO Sundar Pichai sold 22,500 shares on October 2 at an average price of $167.07, resulting in total proceeds of approximately $3.76 million. After this sale, Pichai's direct ownership in the company amounts to around 2.13 million shares, worth roughly $355.74 million. Additionally, Amie Thuener O'toole, the Chief Accounting Officer, sold 1,367 shares on October 1 for about $230,804.28. Overall, a total of 216,092 shares have been sold by insiders over the past ninety days, with corporate insiders holding 11.55% of the total stock.Goldman, Alphabet, Stocks