Alibaba Group (NYSE:BABA) Trading 2.3% Higher - Here's Why

Key Points

• Alibaba shares rose 2.3% to approximately $114.74 in Monday trading, with volume below the stock’s average daily level.
• Analyst sentiment remains broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $186.90, despite mixed target-price revisions.
• Alibaba reported quarterly revenue of $35.30 billion and earnings of $0.01 per share, while insiders sold roughly 920,000 shares worth $70.8 million over the prior 90 days.

Shares of Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) rose 2.3% during trading on Monday . The stock traded as high as $115.02 and last traded at $114.7410. 9,144,708 shares changed hands during mid-day trading, a decline of 25% from the average daily volume of 12,114,328 shares. The stock had previously closed at $112.14.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Freedom Capital upgraded shares of Alibaba Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 24th. Mizuho upped their price objective on shares of Alibaba Group from $190.00 to $195.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Wall Street Zen upgraded shares of Alibaba Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 23rd. Nomura lowered their target price on shares of Alibaba Group from $207.00 to $178.00 and set a "buy" rating for the company in a research note on Thursday, June 25th. Finally, Morgan Stanley lifted their target price on shares of Alibaba Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Alibaba Group has a consensus rating of "Moderate Buy" and a consensus target price of $186.90.

Alibaba Group Stock Up 2.3%

The firm has a 50 day moving average of $114.46 and a 200 day moving average of $133.92. The firm has a market cap of $275.04 billion, a price-to-earnings ratio of 18.84, a PEG ratio of 2.07 and a beta of 0.51. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The firm had revenue of $35.30 billion for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%. As a group, sell-side analysts predict that Alibaba Group Holding Limited will post 6.28 earnings per share for the current year.

Alibaba Group Dividend Announcement

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

Insider Activity at Alibaba Group

In related news, CFO Hong Xu sold 175,054 shares of the stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $12.15, for a total transaction of $2,126,906.10. Following the transaction, the chief financial officer directly owned 280,496 shares of the company's stock, valued at $3,408,026.40. This represents a 38.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President J. Michael Evans sold 720,000 shares of the firm's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $94.95, for a total transaction of $68,364,000.00. Following the completion of the sale, the president owned 28,000 shares of the company's stock, valued at $2,658,600. The trade was a 96.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 920,303 shares of company stock worth $70,796,370 over the last ninety days. 12.50% of the stock is owned by corporate insiders.

Institutional Trading of Alibaba Group

Several large investors have recently made changes to their positions in BABA. Brighton Jones LLC raised its stake in Alibaba Group by 40.4% during 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 period. AQR Capital Management LLC acquired a new stake in Alibaba Group in the first quarter valued at approximately $254,000. Bank of Nova Scotia grew its stake in Alibaba Group by 313.0% in 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 period. Daiwa Securities Group Inc. bought a new stake in shares of Alibaba Group during the second quarter valued at approximately $1,613,000. Finally, Ieq Capital LLC increased its holdings 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 valued at $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 and hedge funds.

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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