Alibaba Group (NYSE:BABA) Stock Price Up 2.1% - Still a Buy?

Key Points

• Alibaba shares rose 2.1% in mid-day trading, reaching as high as $112.17 on volume above the daily average. The move came amid renewed optimism around the stock’s near-term outlook.
• Recent bullish catalysts include a leaked earnings preview suggesting improving core e-commerce revenue and narrowing quick-commerce losses, which could lift profit estimates. Investors are also encouraged by reports that China may allow limited access to Nvidia’s H200 chips for domestic AI firms like Alibaba.
• Despite the rally, Alibaba faces ongoing scrutiny from securities-fraud investigation announcements and potential regulatory limits on access to its AI models abroad. Wall Street remains mostly positive overall, with a consensus rating of Moderate Buy and an average price target of $186.90.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) shares were up 2.1% during mid-day trading on Thursday . The company traded as high as $112.17 and last traded at $111.26. Approximately 13,799,086 shares traded hands during trading, an increase of 13% from the average daily volume of 12,229,995 shares. The stock had previously closed at $108.98.

More Alibaba Group News

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

• Positive Sentiment: Alibaba’s rally has been fueled by a leaked earnings preview pointing to improving core e-commerce revenue and narrowing losses in quick commerce, which could support a better-than-expected outlook and lead analysts to revisit profit estimates.
• Positive Sentiment: Reports that China may allow limited access to Nvidia’s H200 chips for domestic AI firms, including Alibaba, are adding to optimism around Alibaba’s AI strategy and cloud investment narrative. Article Title
• Positive Sentiment: Alibaba has also benefited from a broader rotation into Chinese tech and AI names, with traders viewing the stock as a key beneficiary of improving sentiment toward China’s internet sector. Article Title
• Neutral Sentiment: Alibaba is facing fresh investor scrutiny from multiple law firms over a securities-fraud investigation, but these announcements are still in the investigative stage and have not yet produced any formal charges or rulings. Article Title
• Negative Sentiment: A report that China could restrict global access to Alibaba’s AI models highlights tighter regulatory control over advanced AI, which could limit the company’s international AI ambitions if expanded further. Article Title

Wall Street Analyst Weigh In

BABA has been the subject of a number of recent analyst reports. Argus raised Alibaba Group to a "hold" rating in a report on Tuesday, March 24th. Jefferies Financial Group lowered their price target on shares of Alibaba Group from $225.00 to $212.00 and set a "buy" rating on the stock in a report on Thursday, March 19th. BNP Paribas Exane assumed coverage on shares of Alibaba Group in a research report on Wednesday, April 29th. They issued an "outperform" rating and a $209.00 price objective for the company. HSBC set a $170.00 price objective on shares of Alibaba Group in a research note on Thursday. Finally, Zacks Research upgraded shares of Alibaba Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Alibaba Group currently has an average rating of "Moderate Buy" and a consensus target price of $186.90.

Alibaba Group Trading Up 2.1%

The stock has a market cap of $267.11 billion, a PE ratio of 18.27, a PEG ratio of 1.81 and a beta of 0.51. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21. The firm has a fifty day simple moving average of $119.65 and a two-hundred day simple moving average of $136.92.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share for the quarter. The company had revenue of $35.30 billion for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. As a group, equities analysts expect that Alibaba Group Holding Limited will post 6.26 earnings per share for the current fiscal year.

Alibaba Group Dividend Announcement

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

Insider Transactions at Alibaba Group

In other Alibaba Group news, General Counsel Siying Yu sold 6,772 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.10, for a total transaction of $81,941.20. Following the sale, the general counsel owned 607,234 shares in the company, valued at $7,347,531.40. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Fan (Fj) Jiang sold 13,579 shares of Alibaba Group stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.10, for a total value of $164,305.90. Following the sale, the chief executive officer directly owned 556,617 shares of the company's stock, valued at approximately $6,735,065.70. This trade represents a 2.38% 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. Over the last ninety days, insiders have sold 920,303 shares of company stock worth $70,796,370. Company insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Alibaba Group

Institutional investors have recently modified their holdings of the company. Brighton Jones LLC lifted its position in Alibaba Group by 40.4% in the 4th quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer's stock worth $289,000 after buying an additional 981 shares during the last quarter. AQR Capital Management LLC bought a new position in Alibaba Group during the first quarter valued at approximately $254,000. Bank of Nova Scotia grew its position in Alibaba Group by 313.0% during the second quarter. Bank of Nova Scotia now owns 21,778 shares of the specialty retailer's stock valued at $2,470,000 after acquiring an additional 16,505 shares during the last quarter. Daiwa Securities Group Inc. purchased a new position in shares of Alibaba Group during the second quarter worth approximately $1,613,000. Finally, Ieq Capital LLC raised its stake in shares of Alibaba Group by 51.9% during the second quarter. Ieq Capital LLC now owns 70,060 shares of the specialty retailer's stock worth $7,946,000 after acquiring an additional 23,925 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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