Alibaba Group (NYSE:BABA) Trading Down 1.9% – Here’s Why

Alibaba Group Holding Limited (NYSE:BABA)’s stock price dropped 1.9% during trading on Wednesday . The company traded as low as $136.08 and last traded at $136.40. Approximately 7,808,547 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 18,717,500 shares. The stock had previously closed at $139.02.

Analyst Ratings Changes

A number of research firms have recently issued reports on BABA. Morgan Stanley raised shares of Alibaba Group from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $100.00 to $180.00 in a report on Monday, February 24th. JPMorgan Chase & Co. boosted their target price on Alibaba Group from $125.00 to $170.00 and gave the stock an “overweight” rating in a research report on Friday, February 21st. Citigroup increased their price target on shares of Alibaba Group from $133.00 to $138.00 and gave the company a “buy” rating in a research report on Friday, January 10th. Bank of America upped their price objective on shares of Alibaba Group from $117.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, February 21st. Finally, Robert W. Baird lifted their target price on shares of Alibaba Group from $110.00 to $125.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 19th. Fifteen investment analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $144.07.

Alibaba Group Stock Performance

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.48 and a quick ratio of 1.48. The company has a market capitalization of $324.66 billion, a PE ratio of 19.72, a PEG ratio of 0.61 and a beta of 0.28. The company has a 50 day moving average of $107.51 and a two-hundred day moving average of $97.63.

Alibaba Group (NYSE:BABA) last released its earnings results on Thursday, February 20th. The specialty retailer reported $2.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.84 by ($0.07). The business had revenue of $38.38 billion for the quarter, compared to analysts’ expectations of $38.19 billion. Alibaba Group had a net margin of 12.29% and a return on equity of 12.89%. As a group, equities research analysts predict that Alibaba Group Holding Limited will post 7.86 earnings per share for the current year.

Hedge Funds Weigh In On Alibaba Group

A number of hedge funds have recently bought and sold shares of the company. Foundations Investment Advisors LLC grew its holdings in shares of Alibaba Group by 21.1% during the fourth quarter. Foundations Investment Advisors LLC now owns 155,440 shares of the specialty retailer’s stock valued at $13,180,000 after buying an additional 27,088 shares during the last quarter. Berkshire Asset Management LLC PA purchased a new stake in Alibaba Group during the 4th quarter valued at $911,000. Exchange Traded Concepts LLC increased its holdings in shares of Alibaba Group by 131.2% in the 4th quarter. Exchange Traded Concepts LLC now owns 74,807 shares of the specialty retailer’s stock worth $6,343,000 after purchasing an additional 42,446 shares in the last quarter. Bailard Inc. raised its stake in shares of Alibaba Group by 46.3% in the fourth quarter. Bailard Inc. now owns 10,245 shares of the specialty retailer’s stock worth $869,000 after purchasing an additional 3,242 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its holdings in shares of Alibaba Group by 7,734.1% during the third quarter. Massachusetts Financial Services Co. MA now owns 269,805 shares of the specialty retailer’s stock valued at $28,632,000 after purchasing an additional 266,361 shares in the last quarter. 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.