Alibaba Group (NYSE:BABA) Shares Down 1.6% - Here's Why

Key Points

• Alibaba Group's shares fell 1.6% on Wednesday, trading at $136.30 after hitting a low of $135.58 and experiencing a 63% decrease in trading volume compared to its average.
• Analysts have adjusted their price targets for Alibaba, with Barclays lowering their target from $180 to $145, while Morgan Stanley maintains a target of $180, reflecting a mixed outlook on the stock.
• Institutional investors have significantly increased their stakes in Alibaba, with Kingstone Capital Partners adding nearly $5.56 billion worth of shares, demonstrating growing confidence in the company despite current stock performance.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) was down 1.6% on Wednesday . The company traded as low as $135.58 and last traded at $136.30. Approximately 7,929,740 shares traded hands during trading, a decline of 63% from the average daily volume of 21,201,920 shares. The stock had previously closed at $138.55.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Barclays lowered their target price on Alibaba Group from $180.00 to $145.00 and set an "overweight" rating on the stock in a report on Tuesday, July 15th. Robert W. Baird increased their target price on Alibaba Group from $142.00 to $153.00 and gave the company an "outperform" rating in a research note on Tuesday. Morgan Stanley set a $180.00 price target on Alibaba Group in a research note on Wednesday, May 14th. Wall Street Zen downgraded Alibaba Group from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, Arete raised Alibaba Group from a "neutral" rating to a "buy" rating and set a $152.00 price target for the company in a report on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $163.53.

Alibaba Group Price Performance

The firm has a market cap of $325.58 billion, a P/E ratio of 15.88, a price-to-earnings-growth ratio of 1.99 and a beta of 0.11. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 0.19. The business has a 50-day moving average of $118.38 and a two-hundred day moving average of $121.91.

Institutional Investors Weigh In On Alibaba Group

A number of institutional investors have recently made changes to their positions in the stock. Kingstone Capital Partners Texas LLC grew its position in shares of Alibaba Group by 1,349,768.3% in the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 49,013,718 shares of the specialty retailer's stock valued at $5,558,646,000 after buying an additional 49,010,087 shares during the last quarter. Primecap Management Co. CA grew its position in shares of Alibaba Group by 0.7% in the 2nd quarter. Primecap Management Co. CA now owns 20,764,276 shares of the specialty retailer's stock valued at $2,354,877,000 after buying an additional 140,579 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Alibaba Group by 22.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 15,648,064 shares of the specialty retailer's stock valued at $2,069,144,000 after buying an additional 2,885,154 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in shares of Alibaba Group by 43.0% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 8,595,269 shares of the specialty retailer's stock valued at $1,136,554,000 after buying an additional 2,584,480 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Alibaba Group by 85.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,557,495 shares of the specialty retailer's stock valued at $1,131,558,000 after purchasing an additional 3,947,460 shares during the period. Institutional investors own 13.47% of the company's stock.

About Alibaba Group

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.

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