Alibaba Group (NYSE:BABA) Stock Price Down 2% - Here's Why

Key Points

• Shares slipped ~2% to $161.02 on Tuesday (intraday low $159.12) on light volume of about 9.8 million shares, roughly 52% below the 20.5 million daily average.
• Analyst sentiment is broadly positive — the consensus rating is a "Moderate Buy" with 18 Buys, 1 Strong Buy and 1 Sell, and a consensus price target of $191.89.
• Institutional activity shows growing interest: several managers increased or initiated positions, most notably CIBC Bancorp USA's new stake of about $71.4 million, and roughly 13.47% of the stock is held by hedge funds and other institutions.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) dropped 2% on Tuesday . The stock traded as low as $159.12 and last traded at $161.0230. Approximately 9,824,651 shares changed hands during trading, a decline of 52% from the average daily volume of 20,524,680 shares. The stock had previously closed at $164.26.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on BABA. UBS Group reaffirmed a "buy" rating and issued a $162.00 price objective on shares of Alibaba Group in a report on Sunday, August 31st. Zacks Research cut shares of Alibaba Group from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 14th. Erste Group Bank upgraded shares of Alibaba Group from a "hold" rating to a "buy" rating in a research note on Friday, October 3rd. Arete upgraded Alibaba Group from a "neutral" rating to a "buy" rating and set a $152.00 price objective for the company in a research note on Wednesday, September 3rd. Finally, Rosenblatt Securities set a $195.00 target price on Alibaba Group in a research report on Wednesday, November 26th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $191.89.

Alibaba Group Price Performance

The firm has a 50-day moving average of $168.30 and a 200-day moving average of $139.18. The stock has a market cap of $384.21 billion, a PE ratio of 24.63, a PEG ratio of 2.48 and a beta of 0.33. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.46 and a quick ratio of 1.46.

Institutional Trading of Alibaba Group

Hedge funds have recently modified their holdings of the company. IFP Advisors Inc increased its position in Alibaba Group by 17.0% in the third quarter. IFP Advisors Inc now owns 5,617 shares of the specialty retailer's stock worth $1,004,000 after purchasing an additional 815 shares during the last quarter. Steadtrust LLC lifted its position in Alibaba Group by 3.1% during the third quarter. Steadtrust LLC now owns 5,452 shares of the specialty retailer's stock valued at $974,000 after purchasing an additional 162 shares during the last quarter. Polar Asset Management Partners Inc. purchased a new position in shares of Alibaba Group in the 3rd quarter worth $2,198,000. CIBC Bancorp USA Inc. bought a new stake in shares of Alibaba Group in the 3rd quarter worth about $71,418,000. Finally, Tcfg Wealth Management LLC bought a new stake in shares of Alibaba Group in the 3rd quarter worth about $279,000. 13.47% of the stock is owned by hedge funds and other institutional investors.

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.

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