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

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) shares fell 3.4% during mid-day trading on Thursday . The company traded as low as $121.88 and last traded at $122.55. 7,143,351 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 21,396,102 shares. The stock had previously closed at $126.86.

Wall Street Analyst Weigh In

A number of research firms have issued reports on BABA. Morgan Stanley set a $180.00 target price on Alibaba Group in a report on Wednesday, May 14th. Mizuho lowered their target price on Alibaba Group from $170.00 to $160.00 and set an "outperform" rating on the stock in a report on Friday, May 16th. Arete lowered Alibaba Group from a "buy" rating to a "neutral" rating and set a $153.00 target price on the stock. in a report on Tuesday, June 24th. Robert W. Baird lowered their target price on Alibaba Group from $147.00 to $142.00 and set an "outperform" rating on the stock in a report on Friday, May 16th. Finally, Bank of America lowered their target price on Alibaba Group from $145.00 to $135.00 and set a "buy" rating on the stock in a report on Friday, July 11th. Three equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $153.29.

Alibaba Group Price Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.55 and a current ratio of 1.55. The firm has a market cap of $291.37 billion, a P/E ratio of 16.40, a P/E/G ratio of 1.80 and a beta of 0.17. The company has a 50-day moving average of $116.15 and a 200 day moving average of $119.91.

Alibaba Group Cuts Dividend

The firm also recently disclosed a -- dividend, which was paid on Thursday, July 10th. Shareholders of record on Thursday, June 12th were given a $0.95 dividend. The ex-dividend date was Thursday, June 12th. This represents a yield of 80.0%. Alibaba Group's payout ratio is presently 12.75%.

Hedge Funds Weigh In On Alibaba Group

Several institutional investors have recently bought and sold shares of the business. Investment House LLC raised its position in Alibaba Group by 1,435.0% in the 2nd quarter. Investment House LLC now owns 30,700 shares of the specialty retailer's stock valued at $3,482,000 after purchasing an additional 28,700 shares during the last quarter. Ardsley Advisory Partners LP increased its stake in shares of Alibaba Group by 11.1% in the 2nd quarter. Ardsley Advisory Partners LP now owns 10,000 shares of the specialty retailer's stock valued at $1,134,000 after buying an additional 1,000 shares during the period. NewEdge Advisors LLC increased its stake in shares of Alibaba Group by 20.6% in the 2nd quarter. NewEdge Advisors LLC now owns 101,184 shares of the specialty retailer's stock valued at $11,475,000 after buying an additional 17,310 shares during the period. AXA S.A. increased its stake in shares of Alibaba Group by 53.5% in the 2nd quarter. AXA S.A. now owns 1,100,953 shares of the specialty retailer's stock valued at $124,859,000 after buying an additional 383,573 shares during the period. Finally, Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna acquired a new stake in shares of Alibaba Group in the 2nd quarter valued at $170,000. Institutional investors 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.

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