Alphabet (NASDAQ:GOOG) Shares Gap Up Following Strong Earnings

Alphabet Inc. (NASDAQ:GOOG - Get Free Report)'s share price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $161.47, but opened at $167.10. Alphabet shares last traded at $166.53, with a volume of 8,308,246 shares traded.

The information services provider reported $2.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.04 by $0.77. Alphabet had a return on equity of 32.49% and a net margin of 28.60%. The business had revenue of $90.23 billion for the quarter, compared to analyst estimates of $89.30 billion.

Alphabet Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 17th. Investors of record on Monday, March 10th were issued a dividend of $0.20 per share. The ex-dividend date was Monday, March 10th. This represents a $0.80 annualized dividend and a yield of 0.49%. Alphabet's dividend payout ratio is currently 9.94%.

Analyst Ratings Changes

A number of research firms recently weighed in on GOOG. The Goldman Sachs Group restated a "buy" rating on shares of Alphabet in a research note on Wednesday, February 5th. Oppenheimer raised their price objective on shares of Alphabet from $185.00 to $200.00 and gave the company an "outperform" rating in a research note on Friday. Westpark Capital reaffirmed a "buy" rating and issued a $210.00 target price on shares of Alphabet in a report on Friday. JPMorgan Chase & Co. upped their price target on Alphabet from $180.00 to $195.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Morgan Stanley reissued an "overweight" rating on shares of Alphabet in a report on Wednesday, February 5th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have given a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $203.94.

Insider Buying and Selling

In related news, Director John L. Hennessy sold 200 shares of the stock in a transaction on Thursday, March 13th. The stock was sold at an average price of $165.53, for a total value of $33,106.00. Following the completion of the sale, the director now directly owns 7,813 shares in the company, valued at approximately $1,293,285.89. This represents a 2.50 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Amie Thuener O'toole sold 673 shares of the company's stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $155.33, for a total value of $104,537.09. Following the completion of the sale, the chief accounting officer now directly owns 15,303 shares of the company's stock, valued at $2,377,014.99. The trade was a 4.21 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 148,163 shares of company stock valued at $25,361,647. 12.99% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alphabet

A number of institutional investors and hedge funds have recently bought and sold shares of GOOG. GPS Wealth Strategies Group LLC boosted its stake in shares of Alphabet by 6.8% during the 4th quarter. GPS Wealth Strategies Group LLC now owns 16,248 shares of the information services provider's stock valued at $3,094,000 after buying an additional 1,041 shares during the last quarter. Harvest Investment Services LLC lifted its holdings in Alphabet by 3.3% during the 4th quarter. Harvest Investment Services LLC now owns 4,329 shares of the information services provider's stock worth $824,000 after buying an additional 138 shares during the last quarter. North Forty Two & Co. bought a new stake in shares of Alphabet in the 4th quarter valued at approximately $281,000. SageView Advisory Group LLC lifted its stake in Alphabet by 140.6% during the fourth quarter. SageView Advisory Group LLC now owns 14,734 shares of the information services provider's stock worth $2,806,000 after purchasing an additional 8,610 shares during the last quarter. Finally, Requisite Capital Management LLC acquired a new position in Alphabet in the fourth quarter worth $927,000. Hedge funds and other institutional investors own 27.26% of the company's stock.

Alphabet Stock Performance

The stock's 50-day moving average price is $164.25 and its 200-day moving average price is $177.25. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $2.00 trillion, a P/E ratio of 20.35, a P/E/G ratio of 1.34 and a beta of 1.04.

About Alphabet

Alphabet Inc offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.