Alibaba Group (NYSE:BABA) Stock Price Down 1.8% Following Insider Selling

Key Points

• Alibaba shares fell 1.8% after insider selling news, with the stock trading around $96.25 after touching an intraday low of $95.19.
• President J. Michael Evans sold 720,000 shares for about $68.4 million, cutting his direct stake by more than 96%. Two other insiders, Fang Jiang and General Counsel Siying Yu, also sold shares, though those sales were tied to tax withholding on equity awards.
• Analyst sentiment remains fairly positive overall, with a Moderate Buy consensus and an average price target of $187.38, even as some firms trimmed targets or reiterated hold ratings.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s share price dropped 1.8% during trading on Thursday following insider selling activity. The stock traded as low as $95.19 and last traded at $96.2470. Approximately 11,703,240 shares changed hands during mid-day trading, a decline of 3% from the average session volume of 12,059,566 shares. The stock had previously closed at $97.99.

Specifically, President J. Michael Evans sold 720,000 shares of the stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $94.95, for a total transaction of $68,364,000.00. Following the sale, the president directly owned 28,000 shares in the company, valued at approximately $2,658,600. This represents a 96.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Fang Jiang sold 4,898 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $12.09, for a total value of $59,216.82. Following the completion of the sale, the insider directly owned 5,559,511 shares in the company, valued at approximately $67,214,487.99. This trade represents a 0.09% 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. In related news, General Counsel Siying Yu sold 6,772 shares of the business's stock in a transaction that occurred on 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 transaction, the general counsel owned 607,234 shares in the company, valued at $7,347,531.40. The trade was a 1.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Ratings Changes

Several brokerages have weighed in on BABA. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Alibaba Group in a research report on Wednesday, May 27th. Nomura reduced their price target on shares of Alibaba Group from $207.00 to $178.00 and set a "buy" rating for the company in a report on Thursday, June 25th. Barclays upped their price target on shares of Alibaba Group from $186.00 to $195.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. Freedom Capital raised shares of Alibaba Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 24th. Finally, Jefferies Financial Group cut their price objective on shares of Alibaba Group from $225.00 to $212.00 and set a "buy" rating on the stock in a research report on Thursday, March 19th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $187.38.

Key Alibaba Group News

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

• Positive Sentiment: Alibaba’s affiliate Ant Group invested in Zeroth Robotics, adding to its push into humanoid robotics and AI-adjacent opportunities that could support long-term growth. Article: Alibaba-affiliate Ant Group rushes into humanoid robots with a dozen deals in 18 months
• Positive Sentiment: Access Advance announced Alibaba expanded its participation in the Video Distribution Patent Pool, a routine but constructive licensing update that suggests continued engagement in digital media infrastructure. Article: Access Advance and Alibaba Announce Alibaba's Expanded Participation in the VDP Pool
• Neutral Sentiment: Alibaba’s president, J. Michael Evans, disclosed a large share sale, which may weigh on sentiment but was likely prearranged or related to stock compensation rather than a clear operating warning. Article: Alibaba Group NYSE: BABA President Sells 720,000 Shares
• Neutral Sentiment: Erste Group slightly cut its earnings estimates for FY2027 and FY2028, indicating a modestly more cautious view but not a major thesis change. Article: Alibaba Group stock and analyst coverage
• Negative Sentiment: Alibaba agreed to pay $600 million to settle U.S. DOJ allegations that its platforms failed to stop illegal pharmaceutical and restricted-product sales, creating legal, compliance, and reputational headwinds. Article: Alibaba, U.S. Payment Processor to Pay $600 Million in DOJ Settlement Over Illegal Drug Sales
• Negative Sentiment: Shareholder law firms have launched securities investigations, which can add overhang even without any proven misconduct. Article: BABA Investors Have Opportunity to Join Alibaba Group Holding Limited Fraud Investigation with the Schall Law Firm
• Negative Sentiment: Additional policy pressure is building, including the EU’s new fee on low-value Chinese e-commerce parcels and other trade-related restrictions that could affect Alibaba’s cross-border platforms like AliExpress. Article: EU slaps €3 fee on cheap ecommerce parcels in blow to Shein, Temu, AliExpress

Alibaba Group Stock Down 1.8%

The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a 50 day simple moving average of $123.13 and a two-hundred day simple moving average of $138.69. The stock has a market cap of $230.91 billion, a P/E ratio of 15.80, a P/E/G ratio of 1.67 and a beta of 0.51.

Alibaba Group (NYSE:BABA - Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The company had revenue of $35.30 billion during the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%. Equities research analysts predict that Alibaba Group Holding Limited will post 6.66 earnings per share for the current year.

Alibaba Group Announces Dividend

The business also recently announced an annual dividend, which will be paid on Monday, July 13th. Shareholders of record on Thursday, June 11th will be paid a dividend of $1.05 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a yield of 93.0%. Alibaba Group's dividend payout ratio (DPR) is presently 16.91%.

Institutional Trading of Alibaba Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital World Investors boosted its holdings in shares of Alibaba Group by 7.7% in the fourth quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer's stock valued at $953,527,000 after acquiring an additional 466,847 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Alibaba Group by 7,680.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock worth $881,554,000 after purchasing an additional 5,936,847 shares in the last quarter. Fisher Asset Management LLC lifted its position in Alibaba Group by 0.8% in the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer's stock worth $782,135,000 after purchasing an additional 42,297 shares during the period. Norges Bank acquired a new stake in Alibaba Group in the fourth quarter worth approximately $594,477,000. Finally, AMF Tjanstepension AB boosted its stake in Alibaba Group by 4.1% during the 1st quarter. AMF Tjanstepension AB now owns 2,206,634 shares of the specialty retailer's stock valued at $276,844,000 after purchasing an additional 86,613 shares in the last quarter. 13.47% of the stock is currently owned by institutional investors.

About Alibaba Group

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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