DZ Bank has recently reduced Alphabet Inc Class A (GOOGL) stock to Hold rating, as announced on February 6, 2025, according to Finviz. Earlier, on January 27, 2025, Needham had reiterated the stock to Buy, setting a price target of $225 for GOOGL stock. Cantor Fitzgerald also reiterated Neutral rating with a price target of $210. Additionally, JMP Securities reduced Mkt Perform rating on January 2, 2025. China Renaissance analysts, in their report published on October 31, 2024, also raised Buy rating and set a price target of for Alphabet Inc Class A’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Alphabet Inc Class A (GOOGL) Stock Trading Recap
On Friday, Alphabet Inc Class A (GOOGL) stock saw a decline, ending the day at $185.23 which represents a decrease of $-0.91 or -0.49% from the prior close of $186.14. The stock opened at $185.06 and touched a low of $184.32 during the day, reaching a high of $186.4. The volume of shares traded was 20.39 million falling short of the average volume of 28.95 million.
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GOOGL Stock Performance and Moving Averages
In recent trading, Alphabet Inc Class A (GOOGL) stock price has shown some volatility, fluctuating -0.06% over the last five trades and -5.28% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 15.50%, and it has gained 1.99% in the previous three months. Currently, GOOGL is trading at -4.54%, -3.12%, and 5.64% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, GOOGL, a Communication Services sector stock, is trading -10.54% below its 52-week high but remains 41.76% above its 52-week low. The Average True Range (ATR) (14 days) of 4.93 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Alphabet Inc Class A’s Profitability and Valuation Ratios
Alphabet Inc Class A’s profitability metrics reveal financial health. The company currently boasts an operating margin of 32.46% and a profit margin of 28.62%, with a gross margin of 15.50%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Alphabet Inc Class A’s market capitalization stands at $2266.97 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 23.02, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 18.16. Additionally, the Price-to-Sales Ratio is 6.48, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 6.96, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 52.28% of Alphabet Inc Class A (GOOGL)’s shares, while financial institutions hold 38.13%.
Notable insider trades include O’Toole Amie Thuener, VP, Chief Accounting Officer at Alphabet Inc Class A (GOOGL), who sold 1340 shares on Feb 03 ’25, at $202.08 each, totaling $0.27 million. On Jan 31 ’25, Shriram Kavitark Ram, Director, sold 14000 shares for $205 each, amounting to $2.87 million. Additionally, on Jan 31 ’25, Shriram Kavitark Ram sold 12000 shares at $205 each, generating $2.46 million.
