Alibaba Group (NYSE:BABA) Stock Price Down 3.4% - Here's Why

Key Points

• Alibaba Group's shares fell 3.4% during mid-day trading, closing at $122.55, and experienced a significant decrease in trading volume compared to recent averages.
• Research firms have adjusted their target prices for Alibaba, with Morgan Stanley setting it at $180.00 and Mizuho lowering it from $170.00 to $160.00, while several analysts maintain a consensus rating of "Moderate Buy."
• The company has reported a recent dividend cut, with shareholders receiving a $0.95 dividend, reflecting a payout ratio of 12.75% and indicating challenges ahead.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s stock price dropped 3.4% on Thursday . The stock traded as low as $121.88 and last traded at $122.55. Approximately 7,143,351 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 21,396,102 shares. The stock had previously closed at $126.86.

Analyst Ratings Changes

BABA has been the subject of a number of analyst reports. Benchmark reissued a "buy" rating on shares of Alibaba Group in a research note on Monday, July 21st. Arete Research downgraded Alibaba Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 24th. Loop Capital set a $176.00 price objective on Alibaba Group in a report on Friday, May 16th. Bank of America cut their target price on Alibaba Group from $145.00 to $135.00 and set a "buy" rating on the stock in a research note on Friday, July 11th. Finally, Wall Street Zen lowered Alibaba Group from a "buy" rating to a "hold" rating in a research report on Friday, June 27th. Three investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $157.38.

Alibaba Group Trading Up 0.1%

The firm has a market capitalization of $289.54 billion, a price-to-earnings ratio of 16.30, a price-to-earnings-growth ratio of 1.78 and a beta of 0.17. The firm's 50 day moving average is $116.23 and its 200 day moving average is $120.59. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 0.19.

Institutional Investors Weigh In On Alibaba Group

A number of institutional investors and hedge funds have recently modified their holdings of BABA. Kingstone Capital Partners Texas LLC raised its holdings in Alibaba Group by 1,349,768.3% during the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 49,013,718 shares of the specialty retailer's stock worth $5,558,646,000 after buying an additional 49,010,087 shares during the period. Primecap Management Co. CA raised its holdings in shares of Alibaba Group by 0.7% during the second quarter. Primecap Management Co. CA now owns 20,764,276 shares of the specialty retailer's stock valued at $2,354,877,000 after acquiring an additional 140,579 shares during the period. Goldman Sachs Group Inc. lifted 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 acquiring an additional 2,885,154 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in 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 worth $1,136,554,000 after purchasing an additional 2,584,480 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Alibaba Group by 85.6% during 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 worth $1,131,558,000 after purchasing an additional 3,947,460 shares in the last quarter. 13.47% of the stock is owned by institutional investors and hedge funds.

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.