Alphabet Inc’s (GOOG) Self-Driving Car Unit To Become Stand-Alone Business In 2016

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According to Bloomberg, Alphabet Inc (NASDAQ:GOOG) is expected to make their self-driving car unit a stand-alone company under their control sometime in 2016. In doing so they will be able to treate the new entity like it’s own company, while building it out to slowly take on others within the industry.

Sources say that the new company would offer rides for hire, and could initially launch in the cities of San Francisco, CA and Austin, TX. The vehicles would likely be used first in smaller, confined areas such as college campuses, corporate office parks and even military bases, before gradually being rolled out to public roads and highways. The stock is up 0.73% or $5.4 following the news, hitting $748.8 per share. About 759,950 shares traded hands. GOOG has risen 40.36% since May 13, 2015 and is uptrending. It has outperformed the S&P500 by 44.04%.

From a total of 28 analysts covering Google Inc. (NASDAQ:GOOG) stock, 24 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 86% of the ratings are positive. The highest target price is $900 while the lowest target price is $700. The mean of all analyst targets is $825 which is 10.18% above today’s ($748.8) stock price. Google Inc. was the topic of 37 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on October 23 with a “Buy” rating. Pivotal Research maintained shares with a”Hold” rating and a $740 target share price in their report from an October 23. Piper Jaffray maintained GOOG stock in a recent report from October 23 with a “Overweight” rating. Pacific Crest maintained the rating on October 23. Pacific Crest has a “Overweight” rating and a $820 price target on shares. Finally, Credit Suisse maintained the stock with a “Outperform” rating in a report they issued on an October 23.

The institutional sentiment decreased to 0.67 in Q2 2015. It’s down 0.53, from 1.2 in 2015Q2. The ratio dropped, as 445 funds sold all their Alphabet Inc shares they owned while 412 reduced their positions. 109 funds bought stakes while 464 increased their total positions. Institutions now own 203.36 million shares which is 12.54% less than the previous share count of 232.53 million in 2015Q2.

Ancient Art L.P. holds 22.07% of its total portfolio in Alphabet Inc, equating to 213,887 shares. Jgp Global Gestao De Recursos Ltda. owns 38,052 shares representing 12.71% of their total US portfolio. Moreover, Cantillon Capital Management Llc has 11.84% of their total portfolio invested in the company, equating to 888,378 shares. The California-based Dalal Street Llc has a total of 11.16% of their portfolio invested in the stock. Glade Brook Capital Partners Llc, a Connecticut-based fund reported 50,799 shares owned.

Since February 25, 2015, the stock had 0 insider purchases, and 52 selling transactions for a total of $725.63 million in net activity. Brin Sergey sold 16,670 shares worth $10.24M. Page Lawrence sold 16,670 shares worth $10.34 million. Doerr L John sold 5,269 shares worth $3.33 million. Drummond David C sold 5,290 shares worth $3.39 million. The insider Mather Ann sold 6,000 shares worth $3.48 million.

Alphabet Inc is a collection of Companies. The company has a market cap of $520.24 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 35.22 P/E ratio. These will be managed separately in Alphabet.

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