Alphabet Inc. (GOOGL) Stock: A Good Pick In The technology Sector?

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Alphabet Inc. (GOOGL) is making a move up in the market today. The stock, focused on the tech space, is currently trading at $1245.22 after heading up 9.62% so far in today’s session. In terms of technology stocks, there are a number of aspects that have the ability to cause price movement in the market. One of the most common is news. Here are the most recent headlines associated with GOOGL:

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Jul-27-19 02:21PM Report: Verizon Hiring Blockchain Engineers
09:52AM Big Tech antitrust probe leads to meeting between attorney general, state counterparts
09:50AM Alphabets bounce-back quarter has shares, price targets on the rise
09:07AM Dan Nathan’s Apple Options Trade
08:53AM This Analyst Sees Upside Potential In Alphabet, Twitter and Amazon

Nonetheless, any time investors are making an investing decision, investors should take a look at far more than news, especially in the ever changing technology industry. Here’s what’s going on with Alphabet Inc..

Recent Movement From GOOGL

Although a single session gain, like the move that we’re seeing from Alphabet Inc. might cause excitement in some investors, that alone should not be the reason for a decision to, or not to, invest in a company. It is always smart to look into trends just a single trading day. In the case of GOOGL, here are the returns that investors have seen:

  • Weekly – Throughout the last week, GOOGL has produced a price change amounting to 10.05%.
  • Monthly – The monthly returns from Alphabet Inc. works out to 15.26%.
  • Past 3 Months – Throughout the last 3 months, the company has generated a return on investment that works out to -2.52%
  • Past 6 Months – In the previous six months, investors have seen a change that works out to 13.05% from the company.
  • This Year So Far – Since the open of this year GOOGL has generated a ROI of 19.16%.
  • Annually – Lastly, throughout the past full year, we’ve seen movement in the amount of -2.41% from GOOGL. Over this period of time, the stock has sold at a high of -3.99% and a low price of 27.37%.

Ratios To Watch

Looking at a few ratios having to do with a stock can provide investors a look of how dangerous and/or rewarding a an investment option may be. Below are some of the key ratios to look at when digging into GOOGL.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the value of the stock is headed for declines. In general, strong tech stocks tend to have a lower short ratio. However, we also tend to see a lot of short squeezes in the sector. Nonetheless, as it relates to Alphabet Inc., the stock’s short ratio comes to 1.31.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure whether or not a company can cover its debts as they mature based on quick assets or current assets. Because in tech, companies are reliant on continued support from investors as they work to bring new technologies to market, the quick and current ratios can look upsetting. Nonetheless, some better companies in the technology industry come with great quick and current ratios. As far as GOOGL, the quick and current ratios come to 3.90 and 4.00 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. when it comes to Alphabet Inc., that ratio equates to 264.04.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. In this case, the cash to share value is 161.30.

Big Money And Alphabet Inc.

One thing I have come to understand so far in my brief period as an intelligence is that smart investors tend to follow big money players. That is to say, investors that are looking to play it relatively safe will keep their eyes on investments made by institutional investors as well as insiders of the company. With that said, what does the big money picture look like as it relates to GOOGL? Here’s the data:

  • Institutions – As it stands now, institutions hold 81.30% of Alphabet Inc.. Nonetheless, it is worth noting that the ownership held by institutions has moved in the amount of 0.04% over the past quarter.
  • Insiders – As far as insiders go, insiders of the company currently own 0.16% of the company. Their ownership of the company has changed in the amount of 0.00% throughout the past quarter.

How Analysts Feel About Alphabet Inc.

While it’s never a good idea to blindly follow the thoughts of analysts, it is a good idea to use their opinions to validate your own due diligence when it comes to making an investment decision in the technology space. Below you’ll find the most recent moves that we have seen from analysts when it comes to GOOGL.

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Jun-24-19 Reiterated MoffettNathanson Buy $1290 → $1250
Jun-04-19 Initiated Loop Capital Hold
Jan-07-19 Upgrade Pivotal Research Group Hold → Buy $1240
Jan-03-19 Upgrade Canaccord Genuity Hold → Buy $1140 → $1250
Dec-06-18 Initiated Guggenheim Buy $1330

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $53.53. In the current quarter, analysts see the company producing earnings in the amount of $11.30. Over the last 5 years, GOOGL has generated revenue in the amount of $19.80% with earnings coming in at 19.60%. On a quarter over quarter basis, earnings have seen movement of -28.70% and revenue has seen movement of 16.70%.

Float Information

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 703.59M shares of Alphabet Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, GOOGL has a float of 647.09M.

It’s also important to look at the short percentage of the float. After all, when a large portion of the float available for trading is shorted, the overall feeling among traders is that the stock is going to fall. When it comes to GOOGL, the percentage of the float that is shorted currently sits at 0.35%. In general, concerning short percent of the float would be considered to be anything over 40%. Nonetheless, I have seen that any short percent of the float over 26% is likely a risky play.

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