Alibaba Group (NYSE:BABA) Trading 3.2% Higher - Here's Why

Key Points

• Alibaba shares rose 3.2% midday to about $136.86 (intraday high $139.22) on ~15.1 million shares traded, roughly 20% above the stock's average daily volume.
• Analysts have been lifting targets and ratings recently — notably Nomura raised its price target to $237 — leaving a consensus of "Moderate Buy" with an average target of $195.17 (16 Buys, 3 Holds, 1 Sell).
• The company has a market cap of $326.7 billion, a P/E of ~18.9 and low leverage (debt-to-equity 0.23) with current and quick ratios of 1.46, indicating modest leverage and reasonable liquidity.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s share price was up 3.2% during mid-day trading on Tuesday . The company traded as high as $139.22 and last traded at $136.8580. Approximately 15,093,034 shares were traded during trading, an increase of 20% from the average daily volume of 12,536,752 shares. The stock had previously closed at $132.64.

Analyst Ratings Changes

A number of research firms recently weighed in on BABA. Nomura increased their price target on Alibaba Group from $193.00 to $237.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Arete Research raised shares of Alibaba Group from a "neutral" rating to a "buy" rating and set a $190.00 price objective for the company in a research note on Wednesday, January 21st. Sanford C. Bernstein decreased their target price on shares of Alibaba Group from $200.00 to $190.00 and set an "outperform" rating for the company in a report on Wednesday, November 26th. Morgan Stanley dropped their target price on shares of Alibaba Group from $200.00 to $180.00 and set an "overweight" rating on the stock in a research report on Thursday, January 8th. Finally, Barclays boosted their price target on shares of Alibaba Group from $190.00 to $195.00 and gave the company an "overweight" rating in a report on Wednesday, November 26th. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $195.17.

Alibaba Group Stock Performance

The stock has a market capitalization of $326.74 billion, a PE ratio of 18.90, a P/E/G ratio of 2.86 and a beta of 0.43. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a 50 day moving average of $157.16 and a 200-day moving average of $158.33.

Institutional Trading of Alibaba Group

Institutional investors have recently made changes to their positions in the stock. Ameriflex Group Inc. lifted its position in Alibaba Group by 101.4% in the 3rd quarter. Ameriflex Group Inc. now owns 143 shares of the specialty retailer's stock worth $26,000 after buying an additional 72 shares in the last quarter. Mather Group LLC. purchased a new position in shares of Alibaba Group during the 3rd quarter valued at $30,000. Foster Dykema Cabot & Partners LLC acquired a new position in shares of Alibaba Group in the third quarter worth $30,000. NBT Bank N A NY raised its holdings in shares of Alibaba Group by 231.5% during the third quarter. NBT Bank N A NY now owns 179 shares of the specialty retailer's stock worth $32,000 after acquiring an additional 125 shares in the last quarter. Finally, Costello Asset Management INC purchased a new stake in shares of Alibaba Group during the fourth quarter worth $34,000. 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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