Alibaba Group (NYSE:BABA) Trading Down 2.2% - Should You Sell?

Key Points

• Alibaba Group's share price declined by 2.2% to $121.52, with trading volume significantly lower at 6.8 million shares compared to its average of approximately 20.8 million shares.
• Recent analyst ratings show a mix of sentiment, with Arete Research downgrading Alibaba from a "strong-buy" to a "hold", while the consensus rating remains a "Moderate Buy" with a target price of $159.67.
• Institutional investor interest is notable, with American Century Companies Inc. increasing its stake by 52.1% in the first quarter of the year.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s share price fell 2.2% on Wednesday . The company traded as low as $120.79 and last traded at $121.52. 6,807,116 shares were traded during trading, a decline of 67% from the average session volume of 20,788,873 shares. The stock had previously closed at $124.19.

Analysts Set New Price Targets

A number of brokerages have weighed in on BABA. Arete Research lowered Alibaba Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 24th. Benchmark reissued a "buy" rating on shares of Alibaba Group in a research note on Monday, July 21st. Morgan Stanley set a $180.00 price target on Alibaba Group in a research note on Wednesday, May 14th. Arete downgraded Alibaba Group from a "buy" rating to a "neutral" rating and set a $153.00 price objective for the company. in a report on Tuesday, June 24th. Finally, Mizuho cut their target price on Alibaba Group from $170.00 to $160.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th. Eleven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Alibaba Group currently has an average rating of "Moderate Buy" and a consensus target price of $159.67.

Alibaba Group Stock Down 1.9%

The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $290.58 billion, a PE ratio of 16.34, a price-to-earnings-growth ratio of 1.83 and a beta of 0.17. The firm has a 50-day moving average of $116.76 and a two-hundred day moving average of $121.47.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. American Century Companies Inc. raised its position in Alibaba Group by 52.1% in the first quarter. American Century Companies Inc. now owns 2,293,085 shares of the specialty retailer's stock valued at $303,215,000 after purchasing an additional 785,494 shares during the period. WCM Investment Management LLC purchased a new position in Alibaba Group in the first quarter valued at about $4,074,000. KMG Fiduciary Partners LLC purchased a new position in Alibaba Group in the first quarter valued at about $1,948,000. Avaii Wealth Management LLC purchased a new position in Alibaba Group in the first quarter valued at about $563,000. Finally, Fiduciary Alliance LLC raised its position in Alibaba Group by 18.3% in the first quarter. Fiduciary Alliance LLC now owns 117,943 shares of the specialty retailer's stock valued at $15,596,000 after purchasing an additional 18,230 shares during the period. 13.47% of the stock is owned by hedge funds and other institutional investors.

About Alibaba Group

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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