Alibaba Group (NYSE:BABA) Trading Down 2.4% – What’s Next?

Alibaba Group Holding Limited (NYSE:BABA) shares dropped 2.4% during mid-day trading on Tuesday . The stock traded as low as $89.50 and last traded at $90.11. Approximately 5,379,486 shares traded hands during trading, a decline of 69% from the average daily volume of 17,521,244 shares. The stock had previously closed at $92.32.

Wall Street Analysts Forecast Growth

BABA has been the topic of a number of research reports. Sanford C. Bernstein boosted their target price on shares of Alibaba Group from $80.00 to $85.00 and gave the stock a “market perform” rating in a report on Friday, August 16th. Bank of America upped their price objective on Alibaba Group from $106.00 to $124.00 and gave the company a “buy” rating in a research report on Wednesday, October 9th. JPMorgan Chase & Co. lifted their target price on Alibaba Group from $100.00 to $108.00 and gave the stock an “overweight” rating in a report on Friday, August 16th. Mizuho increased their price target on Alibaba Group from $92.00 to $113.00 and gave the company an “outperform” rating in a report on Tuesday, November 12th. Finally, Truist Financial lowered their price target on Alibaba Group from $110.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, August 16th. Two investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, Alibaba Group has a consensus rating of “Moderate Buy” and a consensus target price of $114.07.

Alibaba Group Price Performance

The company has a market cap of $214.03 billion, a PE ratio of 18.26, a price-to-earnings-growth ratio of 0.42 and a beta of 0.30. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.16. The firm has a 50 day simple moving average of $96.81 and a 200-day simple moving average of $86.15.

Alibaba Group (NYSE:BABA) last released its quarterly earnings results on Friday, November 15th. The specialty retailer reported $15.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $13.19. Alibaba Group had a net margin of 8.98% and a return on equity of 12.28%. The business had revenue of $236.50 billion for the quarter, compared to analyst estimates of $239.45 billion. During the same period in the previous year, the company earned $1.82 earnings per share. The business’s revenue for the quarter was up 5.2% on a year-over-year basis. As a group, research analysts predict that Alibaba Group Holding Limited will post 8.44 earnings per share for the current fiscal year.

Institutional Trading of Alibaba Group

Several large investors have recently added to or reduced their stakes in the company. Generate Investment Management Ltd purchased a new position in shares of Alibaba Group during the third quarter worth $12,656,000. Nations Financial Group Inc. IA ADV raised its position in Alibaba Group by 63.9% during the third quarter. Nations Financial Group Inc. IA ADV now owns 28,716 shares of the specialty retailer’s stock valued at $3,047,000 after acquiring an additional 11,192 shares in the last quarter. Handelsbanken Fonder AB lifted its holdings in Alibaba Group by 6.5% in the third quarter. Handelsbanken Fonder AB now owns 822,904 shares of the specialty retailer’s stock valued at $87,327,000 after acquiring an additional 50,000 shares during the period. Massachusetts Financial Services Co. MA grew its stake in shares of Alibaba Group by 7,734.1% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 269,805 shares of the specialty retailer’s stock worth $28,632,000 after purchasing an additional 266,361 shares during the period. Finally, Aspex Management HK Ltd acquired a new stake in shares of Alibaba Group during the 3rd quarter worth approximately $115,995,000. Hedge funds and other institutional investors own 13.47% of the company’s stock.

Alibaba Group Company Profile

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others.