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

Key Points

• Alibaba has a consensus “Moderate Buy” rating from 23 brokerages, including 16 buys and two strong buys. The average 12-month price target is approximately $186.90.
• Alibaba’s upcoming Qwen3.8-Max open-source AI model may introduce a royalty-based revenue-sharing model for commercial users, potentially creating a recurring monetization stream for its AI investments.
• Insiders sold roughly $70.8 million of shares in the last quarter, while institutional investors own 13.47% of the company. Alibaba also faces a securities-fraud class action that could add legal and reputational pressure.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-three brokerages that are presently covering the company, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among brokers that have covered the stock in the last year is $186.9048.

A number of research firms have issued reports on BABA. Mizuho increased their price target on Alibaba Group from $190.00 to $195.00 and gave the company an "outperform" rating in a research report on Thursday, May 14th. Weiss Ratings reissued a "hold (c+)" rating on shares of Alibaba Group in a research report on Wednesday, May 27th. JPMorgan Chase & Co. upped their target price on shares of Alibaba Group from $200.00 to $205.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Barclays raised their target price on shares of Alibaba Group from $186.00 to $195.00 and gave the company an "overweight" rating in a report on Thursday, May 14th. Finally, Zacks Research upgraded shares of Alibaba Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 2nd.

Insider Buying and Selling at Alibaba Group

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

Institutional Investors Weigh In On Alibaba Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Serenity Capital Management PTE. LTD. purchased a new stake in Alibaba Group during the second quarter worth approximately $6,718,600,000. Hudson Value Partners LLC increased its stake in Alibaba Group by 24.3% in the second quarter. Hudson Value Partners LLC now owns 29,344 shares of the specialty retailer's stock valued at $2,816,000 after purchasing an additional 5,731 shares during the last quarter. KMG Fiduciary Partners LLC increased its stake in Alibaba Group by 6.8% in the second quarter. KMG Fiduciary Partners LLC now owns 13,107 shares of the specialty retailer's stock valued at $1,258,000 after purchasing an additional 831 shares during the last quarter. Steadtrust LLC raised its holdings in Alibaba Group by 13.2% during the second quarter. Steadtrust LLC now owns 5,832 shares of the specialty retailer's stock worth $560,000 after purchasing an additional 680 shares in the last quarter. Finally, Allied Private Wealth LLC acquired a new stake in Alibaba Group during the second quarter worth approximately $115,000. Institutional investors and hedge funds own 13.47% of the company's stock.

Alibaba Group News Summary

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

• Positive Sentiment: Alibaba plans to introduce a royalty-based revenue-sharing model for commercial users of its upcoming Qwen3.8-Max open-source AI model. The framework could create a new, recurring monetization channel for Alibaba’s AI investments and make the company the first Chinese AI lab to formally link commercial open-weight model usage to royalties. What Does Alibaba Qwen Royalty Model Mean For Its AI Business?
• Neutral Sentiment: Broader U.S. equity markets declined as fading expectations for a quick reopening of the Strait of Hormuz pushed crude oil prices and Treasury yields higher. The macroeconomic pressure could affect market sentiment and technology valuations, although it is not specific to Alibaba. U.S. Equity Indexes Decline
• Negative Sentiment: Several law firms publicized a securities-fraud class action involving Alibaba and certain officers. The case covers investors who purchased Alibaba securities from June 26, 2025, through June 24, 2026, with an October 5, 2026 deadline for investors seeking lead-plaintiff status. The allegations have not been proven, but the litigation could create legal costs, reputational risk and an overhang on the stock. Alibaba Securities Fraud Lawsuit

Alibaba Group Stock Up 3.2%

Alibaba Group stock opened at $132.50 on Tuesday. The firm has a market capitalization of $317.61 billion, a P/E ratio of 21.76, a P/E/G ratio of 2.36 and a beta of 0.49. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21. Alibaba Group has a twelve month low of $91.99 and a twelve month high of $192.67. The stock's fifty day simple moving average is $113.02 and its 200-day simple moving average is $131.00.

Alibaba Group (NYSE:BABA - Get Free Report) last released its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.The firm had revenue of $35.30 billion during the quarter. As a group, equities analysts expect that Alibaba Group will post 6.31 earnings per share for the current fiscal year.

Alibaba Group Dividend Announcement

The company also recently disclosed an annual dividend, which was paid on Monday, July 13th. Stockholders of record on Thursday, June 11th were given a dividend of $1.05 per share. 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%.

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.

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