Alibaba Group (NYSE:BABA) Shares Gap Up - Should You Buy?

Key Points

• Alibaba Group's shares opened at $128.88 after a gap up from the previous close of $119.57, and last traded at $131.51 with significant trading volume.
• Analysts have lowered their price targets for Alibaba, with Barclays adjusting it from $180.00 to $145.00, while Bank of America reduced theirs from $145.00 to $135.00.
• Institutional investors have shown increased interest, with significant stake increases by firms like Northern Trust Corp, which raised its holdings by 48.0% in the last quarter.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $119.57, but opened at $128.88. Alibaba Group shares last traded at $131.51, with a volume of 15,804,129 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on BABA shares. Arete Research cut Alibaba Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 24th. UBS Group reissued a "buy" rating on shares of Alibaba Group in a report on Sunday. Benchmark reissued a "buy" rating on shares of Alibaba Group in a report on Monday, July 21st. Wall Street Zen cut Alibaba Group from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Finally, Arete cut Alibaba Group from a "buy" rating to a "neutral" rating and set a $153.00 target price for the company. in a report on Tuesday, June 24th. Eleven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Alibaba Group has an average rating of "Moderate Buy" and a consensus price target of $159.69.

Alibaba Group Stock Up 13.0%

The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 0.19. The business has a 50-day moving average price of $117.51 and a 200-day moving average price of $121.72. The firm has a market capitalization of $322.14 billion, a PE ratio of 15.71, a price-to-earnings-growth ratio of 1.99 and a beta of 0.11.

Institutional Investors Weigh In On Alibaba Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. North Ridge Wealth Advisors Inc. acquired a new stake in Alibaba Group during the first quarter worth $26,000. Summit Securities Group LLC increased its stake in Alibaba Group by 100.3% during the first quarter. Summit Securities Group LLC now owns 200 shares of the specialty retailer's stock worth $26,000 after acquiring an additional 59,000 shares during the last quarter. Ransom Advisory Ltd acquired a new stake in Alibaba Group during the first quarter worth $26,000. 1248 Management LLC purchased a new position in shares of Alibaba Group during the first quarter worth $26,000. Finally, Rosenberg Matthew Hamilton purchased a new position in shares of Alibaba Group during the second quarter worth $26,000. Institutional investors and hedge funds 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.