Alibaba Group (NYSE:BABA) Stock Price Up 2.6% - Should You Buy?

Key Points

• Alibaba (NYSE: BABA) stock rose 2.6% midday to $131.37 (intraday high $132.88) from a prior close of $128.01 on volume of about 11.6 million shares, roughly 4% below average.
• Analyst sentiment is a “Moderate Buy” (16 Buys, 6 Holds) with a consensus price target of $187.68; notable calls include Nomura raising its target to $237 and Erste Group downgrading to Hold.
• Key fundamentals: market cap about $313.6B, P/E 24.79 and PEG 2.29; the stock trades below its 50‑day ($139.51) and 200‑day ($155.06) moving averages, and last quarter revenue was $40.71B with EPS of $0.13.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s stock price shot up 2.6% during mid-day trading on Tuesday . The stock traded as high as $132.88 and last traded at $131.37. 11,599,652 shares changed hands during mid-day trading, a decline of 4% from the average session volume of 12,042,651 shares. The stock had previously closed at $128.01.

Wall Street Analyst Weigh In

BABA has been the topic of a number of research reports. Erste Group Bank downgraded Alibaba Group from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Nomura increased their price objective on Alibaba Group from $193.00 to $237.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Zacks Research raised Alibaba Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, March 24th. Arete Research upgraded Alibaba Group from a "neutral" rating to a "buy" rating and set a $190.00 target price for the company in a research report on Wednesday, January 21st. Finally, Argus upgraded shares of Alibaba Group to a "hold" rating in a research report on Tuesday, March 24th. Sixteen investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $187.68.

Alibaba Group Stock Performance

The company has a market cap of $313.63 billion, a P/E ratio of 24.79, a price-to-earnings-growth ratio of 2.29 and a beta of 0.50. The business has a 50 day moving average price of $139.51 and a two-hundred day moving average price of $155.06. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.33 and a current ratio of 1.33.

Alibaba Group (NYSE:BABA - Get Free Report) last announced its quarterly earnings results on Saturday, February 14th. The specialty retailer reported $0.13 EPS for the quarter. Alibaba Group had a return on equity of 7.43% and a net margin of 9.12%.The business had revenue of $40.71 billion for the quarter. On average, sell-side analysts anticipate that Alibaba Group Holding Limited will post 7.86 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Traphagen Investment Advisors LLC grew its holdings in Alibaba Group by 2.0% in the 3rd quarter. Traphagen Investment Advisors LLC now owns 3,018 shares of the specialty retailer's stock worth $539,000 after acquiring an additional 59 shares during the last quarter. Bruce G. Allen Investments LLC raised its stake in shares of Alibaba Group by 26.4% during the third quarter. Bruce G. Allen Investments LLC now owns 302 shares of the specialty retailer's stock valued at $54,000 after acquiring an additional 63 shares during the last quarter. Bluesphere Advisors LLC boosted its holdings in shares of Alibaba Group by 2.2% during the third quarter. Bluesphere Advisors LLC now owns 3,023 shares of the specialty retailer's stock worth $540,000 after purchasing an additional 64 shares during the period. Richardson Financial Services Inc. grew its stake in shares of Alibaba Group by 34.4% in the third quarter. Richardson Financial Services Inc. now owns 254 shares of the specialty retailer's stock worth $45,000 after purchasing an additional 65 shares during the last quarter. Finally, Transcend Capital Advisors LLC grew its stake in shares of Alibaba Group by 1.0% in the third quarter. Transcend Capital Advisors LLC now owns 6,661 shares of the specialty retailer's stock worth $1,191,000 after purchasing an additional 66 shares during the last quarter. 13.47% of the stock is owned by hedge funds and other institutional investors.

Alibaba Group Company Profile

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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