Mega Investors Sold Millions of Google Shares Just Before Stock Soared

BlackRock, J.P. Morgan and CPP Investments are among several institutional investors that potentially missed out on billions of dollars in gains by dumping millions of shares in Google parent Alphabet Inc. just before the stock ascended to a 52-week high. 

The tech giant’s Class A share price climbed steadily during the second quarter, rising 29% from its 52-week low of $140.53 on April 7 to $181.23 on June 30. The shares surged further to a 52-week high of $232.37 on September 4 after a court ruled that Google will not be forced to sell its Chrome browser.  Google’s nonvoting C shares traded between a low of $142.66 on April 7 and a high of $182.45 on June 10. 

The trading activity was reported in second quarter filings with the U.S. Securities and Exchange Commission, but the sale dates and prices were not disclosed. Based on the high and low stock prices during the quarter, sellers potentially missed out on gains of at least 28% and as much as 65%, as of September 4. Investors who sold Alphabet’s nonvoting C shares (GOOG) potentially missed out on runs of 28% to 64%. 

Among the sellers, BlackRock sold approximately 9.4 million Alphabet Class A shares and about 3 million Class C shares during Q2.  The total sale price of the A-shares ranged from $1.32 billion to $1.70 billion, while C shares sold for $428.9 million to $548.5 million. 

As of September 4, the world’s largest asset manager’s A shares would have been worth $2.18 billion, and its C shares would have been worth $700 million. By not holding onto the shares, BlackRock potentially missed out on gains of $480 million to $860 million for its A shares and $151.5 million to $271.1 million for its Class C holdings.  

Capital Group’s Capital Research Global Investors unit sold more than 10 million A shares during Q2 for between $1.41 billion and $1.81 billion, as well as about 8.7 million C shares for $1.24 billion to $1.59 billion. The sales reduced Capital Research’s holdings in Alphabet A shares and C shares by 19% and 24%, respectively. 

Had the firm held on to the A shares, they would have been worth $2.33 billion as of September 4, potentially missing out on gains of between $520 million to $920 million. Capital Research’s C shares would have been worth $2.03 billion as of the same date, with potential value of $435 million to $785 million.  

J.P. Morgan sold approximately 4.2 million Class A shares during Q2 for between $590.2 million and $761.2 million. Those shares would have been worth $975.7 million as of September 4, meaning missed gains of $214.5 million to $385.5 million. It also sold about 10.6 million C shares for between $1.51 billion and $1.93 billion, which would have been worth nearly $2.5 billion as of September 4. The sales represent a reduction of 6% for A shares and approximately 10% for C shares. 

The C$732 billion ($529 billion) Canada Pension Plan Investment Board sold approximately 21% of its A shares, or 2.5 million shares, for between $351.3 million and $453.1 million, and about 1% of its C shares—about 85,000 shares—for between $12.1 million and $15.5 million. As of September 4, those shares would have been worth approximately $581 million and $20 million, respectively.  

Among other institutional investors, the State of Wisconsin Investment Board sold off 2.4 million shares—43%—of its Class A holdings in Alphabet and about 3% of its C shares.  Canada’s C$330 billion Public Sector Pension Investment Board reduced its Alphabet A and C shares by 24% and 40%, respectively. Soros Fund Management dumped 95% of its Class A shares during Q2. 

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Tags: Alphabet, BlackRock, CPPIB, Google, J.P. Morgan