Alibaba Group Holding Limited (NYSE:BABA) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Alibaba has a consensus analyst rating of “Moderate Buy”, based on coverage from 23 analysts. The average 12-month price target is about $186.90.
• Recent analyst actions were mostly positive, including upgrades and maintained buy-type ratings from firms like JPMorgan, BNP Paribas Exane, and Nomura, though one firm lowered its target. This suggests Wall Street still sees meaningful upside even with some caution.
• The stock has also been lifted by news that Apple Intelligence was approved for launch in China with Alibaba’s Qwen AI integrated into Apple devices, fueling optimism about growth in Alibaba’s AI business.

Shares of Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-three analysts that are currently covering the stock, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $186.9048.

Several equities analysts have commented on the stock. Wall Street Zen raised shares of Alibaba Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 23rd. JPMorgan Chase & Co. upped their target price on Alibaba Group from $200.00 to $205.00 and gave the company an "overweight" rating in a report on Thursday, May 14th. Zacks Research raised Alibaba Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. BNP Paribas Exane started coverage on Alibaba Group in a report on Wednesday, April 29th. They set an "outperform" rating and a $209.00 price target on the stock. Finally, Nomura reduced their price objective on Alibaba Group from $207.00 to $178.00 and set a "buy" rating for the company in a research note on Thursday, June 25th.

Alibaba Group Price Performance

BABA opened at $117.61 on Friday. Alibaba Group has a 1 year low of $91.99 and a 1 year high of $192.67. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28. The company has a market capitalization of $282.34 billion, a price-to-earnings ratio of 19.31, a P/E/G ratio of 2.17 and a beta of 0.51. The firm's fifty day moving average price is $117.16 and its two-hundred day moving average price is $135.36.

Alibaba Group (NYSE:BABA - Get Free Report) last announced its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The company had revenue of $35.30 billion during the quarter. As a group, analysts anticipate that Alibaba Group will post 6.28 earnings per share for the current fiscal year.

Alibaba Group Announces Dividend

The business also recently declared an annual dividend, which was paid on Monday, July 13th. Investors of record on Thursday, June 11th were issued a $1.05 dividend. This represents a dividend yield of 93.0%. The ex-dividend date of this dividend was Thursday, June 11th. Alibaba Group's payout ratio is 16.91%.

Insider Activity at Alibaba Group

In related news, CEO Fan (Fj) Jiang sold 13,579 shares of the stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $12.10, for a total transaction of $164,305.90. Following the completion of the transaction, the chief executive officer owned 556,617 shares in the company, valued at approximately $6,735,065.70. This represents a 2.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Siying Yu sold 6,772 shares of Alibaba Group stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.10, for a total transaction of $81,941.20. Following the completion of the sale, the general counsel directly owned 607,234 shares in the company, valued at approximately $7,347,531.40. This represents a 1.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 920,303 shares of company stock valued at $70,796,370 in the last 90 days. 12.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alibaba Group

Several large investors have recently modified their holdings of the stock. Jennison Associates LLC lifted its holdings in Alibaba Group by 11.9% during the fourth quarter. Jennison Associates LLC now owns 54,235 shares of the specialty retailer's stock valued at $7,950,000 after purchasing an additional 5,760 shares during the last quarter. Teachers Retirement System of The State of Kentucky increased its stake in shares of Alibaba Group by 24.5% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer's stock worth $32,567,000 after purchasing an additional 51,000 shares in the last quarter. Thornburg Investment Management Inc. increased its stake in shares of Alibaba Group by 5.5% in the fourth quarter. Thornburg Investment Management Inc. now owns 584,028 shares of the specialty retailer's stock worth $85,607,000 after purchasing an additional 30,644 shares in the last quarter. Eurizon Capital SGR S.p.A. bought a new stake in shares of Alibaba Group in the fourth quarter valued at approximately $21,266,000. Finally, Nations Financial Group Inc. IA ADV raised its position in shares of Alibaba Group by 61.9% in the fourth quarter. Nations Financial Group Inc. IA ADV now owns 50,123 shares of the specialty retailer's stock valued at $7,347,000 after purchasing an additional 19,169 shares during the period. Hedge funds and other institutional investors own 13.47% of the company's stock.

Key Headlines Impacting Alibaba Group

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: China approved Apple Intelligence for launch with Alibaba’s Qwen AI integrated into Apple devices in China, strengthening Alibaba’s position in a major AI rollout and fueling a rally in the stock. Apple Intelligence approved for launch in China with Alibaba’s Qwen AI
• Positive Sentiment: Multiple reports highlighted that Alibaba’s shares jumped in Hong Kong and U.S. trading on optimism that the Apple partnership could accelerate AI adoption and improve growth expectations. Alibaba's U.S.-listed shares rise 4% after Qwen AI set to be integrated in Apple Intelligence
• Neutral Sentiment: Analysts continue to view Alibaba as having significant upside potential, though one firm recently trimmed its price target while keeping an Overweight rating. Alibaba Group Holding Limited (BABA): 12 Strong Buy Stocks with High Upside According to Analysts
• Negative Sentiment: Rosen Law Firm and Pomerantz LLP both announced investigations into possible securities claims against Alibaba, citing alleged misleading business information, which could create legal risk and weigh on shares. Alibaba Investor News: If You Have Suffered Losses in Alibaba Group Holding Limited NYSE: BABA, You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Alibaba Group Company Profile

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.