Alibaba Group (NYSE:BABA) Shares Down 8.6% on Analyst Downgrade

Key Points

• Alibaba Group's stock dropped 8.6% following a downgrade by JPMorgan Chase & Co., which decreased their price target from $245 to $240.
• Analyst ratings for Alibaba are mostly positive, with one strong buy, seventeen buy ratings, and a consensus target price of $188.06.
• Institutional investors are actively trading Alibaba shares, with a reported 13.47% of the stock owned by such investors, indicating significant interest in the company.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s stock price was down 8.6% during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $245.00 to $240.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Alibaba Group traded as low as $157.25 and last traded at $158.76. Approximately 49,185,940 shares traded hands during mid-day trading, an increase of 128% from the average daily volume of 21,595,035 shares. The stock had previously closed at $173.68.

Several other analysts also recently weighed in on the company. Arete Research upgraded Alibaba Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Erste Group Bank raised Alibaba Group from a "hold" rating to a "buy" rating in a report on Friday, October 3rd. UBS Group reaffirmed a "buy" rating and set a $162.00 target price on shares of Alibaba Group in a research note on Sunday, August 31st. Sanford C. Bernstein reiterated an "outperform" rating and issued a $160.00 price target on shares of Alibaba Group in a report on Saturday, August 30th. Finally, CLSA raised their target price on Alibaba Group from $155.00 to $200.00 and gave the company an "outperform" rating in a report on Thursday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $188.06.

Hedge Funds Weigh In On Alibaba Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Traphagen Investment Advisors LLC lifted its holdings in shares of Alibaba Group by 2.0% in the 3rd quarter. Traphagen Investment Advisors LLC now owns 3,018 shares of the specialty retailer's stock worth $539,000 after purchasing an additional 59 shares in the last quarter. Accent Capital Management LLC lifted its position in Alibaba Group by 5.5% in the 1st quarter. Accent Capital Management LLC now owns 1,582 shares of the specialty retailer's stock worth $209,000 after buying an additional 82 shares during the last quarter. Cary Street Partners Financial LLC lifted its position in Alibaba Group by 1.8% in the 2nd quarter. Cary Street Partners Financial LLC now owns 4,757 shares of the specialty retailer's stock worth $539,000 after buying an additional 83 shares during the last quarter. Greenleaf Trust lifted its position in Alibaba Group by 1.0% in the 1st quarter. Greenleaf Trust now owns 8,336 shares of the specialty retailer's stock worth $1,102,000 after buying an additional 85 shares during the last quarter. Finally, Wedbush Securities Inc. lifted its position in Alibaba Group by 2.1% in the 2nd quarter. Wedbush Securities Inc. now owns 4,237 shares of the specialty retailer's stock worth $480,000 after buying an additional 88 shares during the last quarter. 13.47% of the stock is owned by institutional investors.

Alibaba Group Stock Down 8.6%

The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 0.19. The company has a 50-day simple moving average of $145.53 and a two-hundred day simple moving average of $127.35. The stock has a market cap of $378.50 billion, a P/E ratio of 18.46, a P/E/G ratio of 2.14 and a beta of 0.18.

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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