Shares of Alphabet Inc (NASDAQ:GOOG) are trading significantly higher today on a recent report by Mark Mahaney from RBC Capital indicating that the sum of all parts of Alphabet could value the company at or near $1,000 a share.
Mahaney believes that the new reporting structure of the company should increase their transparency while justifying a higher multiple which currently exceeds 35. With a current market cap of over $535 billion, one has to wonder if shares have what it takes to justify a $1,000 price.
This has pushed shares to a new all-time high in trading this afternoon.The stock is up 2.36% or $17.49 after the positive news, hitting $760.09 per share. About 1.32 million shares traded hands. GOOG has risen 34.12% since April 28, 2015 and is uptrending. It has outperformed by 35.75% the S&P500.
Out of 28 analysts covering Google Inc. (NASDAQ:GOOG), 24 rate it “Buy”, 0 “Sell”, while 4 “Hold”. This means 86% are positive. $900 is the highest target while $700 is the lowest. The $825 average target is 8.54% above today’s ($760.09) stock price. Google Inc. was the topic in 37 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Deutsche Bank maintained the stock on October 23 with “Buy” rating. Pivotal Research maintained it with “Hold” rating and $740 target price in an October 23 report. Piper Jaffray maintained the shares of GOOG in a report on October 23 with “Overweight” rating. Pacific Crest maintained the firm’s rating on October 23. Pacific Crest has “Overweight” rating and $820 price target. Finally, Credit Suisse maintained the stock with “Outperform” rating in an October 23 report.
The institutional sentiment increased to 1.2 in Q2 2015. Its up 0.05, from 1.15 in 2015Q1. The ratio improved, as 78 funds sold all Alphabet Inc shares owned while 586 reduced positions. 106 funds bought stakes while 691 increased positions. They now own 232.53 million shares or 33.46% less from 349.45 million shares in 2015Q1.
Zenit Asset Management Ab holds 19.07% of its portfolio in Alphabet Inc for 235,752 shares. Ancient Art L.P. owns 115,300 shares or 13.64% of their US portfolio. Moreover, Kenmare Capital Partners L.L.C. has 11.02% invested in the company for 29,725 shares. The New York-based Farley Capital Ii L.P. has invested 8% in the stock. Two Creeks Capital Management Lp, a New York-based fund reported 150,802 shares.
Since February 25, 2015, the stock had 0 insider buys, and 60 selling transactions for $785.52 million net activity. Brin Sergey sold 16,670 shares worth $10.24 million. Page Lawrence sold 16,670 shares worth $10.34 million. Doerr L John sold 5,269 shares worth $3.33M. Drummond David C sold 5,290 shares worth $3.39 million. The insider Mather Ann sold 6,000 shares worth $3.48M.
Alphabet Inc is a collection of Companies. The company has a market cap of $535.73 billion. The Company’s collection include Calico, Google’s health and longevity effort; Nest its connected home business; Fiber, its gigabit internet arm; and its investment divisions such as Google Ventures and Google Capital, and incubator projects, such as Google X. It has 35.75 P/E ratio. These will be managed separately in Alphabet.