Alibaba Group (NYSE:BABA) Trading Down 2.3% - Time to Sell?

Key Points

• Alibaba shares fell 2.3% on Thursday, trading as low as $109.66 after opening near $115.38, with volume running well above average.
• Investor sentiment was pressured by new regulatory and geopolitical concerns, including Beijing's scrutiny of discount marketing and reports that the U.S. Defense Department added Alibaba to a list tied to China’s military.
• Despite the pullback, analysts still see upside: the stock carries a Moderate Buy consensus with an average price target of $188.76, and Alibaba recently declared a $1.05 annual dividend payable in July.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) traded down 2.3% on Thursday . The stock traded as low as $109.66 and last traded at $112.6690. 16,179,754 shares were traded during mid-day trading, an increase of 37% from the average session volume of 11,816,144 shares. The stock had previously closed at $115.38.

Alibaba Group News Roundup

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

• Negative Sentiment: Beijing has reportedly stepped up scrutiny of discount marketing and misleading promotions during the 618 shopping festival, which adds regulatory risk for Alibaba and other Chinese e-commerce leaders. Alibaba, JD.com Shares Fall as Beijing Launches Fresh Crackdown on Discount Marketing
• Negative Sentiment: The U.S. Defense Department reportedly added Alibaba to a list of companies linked to China’s military, raising geopolitical and regulatory concerns that can weigh on U.S.-listed Chinese stocks. Securities Fraud Investigation Into Alibaba Group Holding Ltd. (BABA) Continues – Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz
• Negative Sentiment: Alibaba also traded ex-dividend, which mechanically reduces the share price and can amplify selling on the day. Is Alibaba Group Holding Limited (BABA) A Good Stock To Buy Now?
• Negative Sentiment: Alibaba’s AI leadership change and reports of China’s large state-backed AI infrastructure spending add uncertainty for investors weighing the company’s near-term AI strategy and competitive position. Alibaba's AI-Chat Chief Replaced After Debate About Focus

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on BABA. Erste Group Bank downgraded Alibaba Group from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Freedom Capital upgraded Alibaba Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 24th. Argus upgraded Alibaba Group to a "hold" rating in a report on Tuesday, March 24th. Mizuho lifted their target price on shares of Alibaba Group from $190.00 to $195.00 and gave the company an "outperform" rating in a report on Thursday, May 14th. Finally, DZ Bank lowered shares of Alibaba Group from a "buy" rating to a "hold" rating and set a $135.00 target price for the company. in a report on Friday, March 20th. Two research 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's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $188.76.

Alibaba Group Stock Down 2.3%

The firm has a market capitalization of $270.31 billion, a P/E ratio of 18.50, a P/E/G ratio of 2.05 and a beta of 0.47. The company has a 50 day simple moving average of $130.55 and a two-hundred day simple moving average of $144.44. The company has a current ratio of 1.28, a quick 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 data on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.The business had revenue of $35.30 billion for the quarter. On average, equities analysts predict that Alibaba Group Holding Limited will post 6.75 EPS for the current fiscal year.

Alibaba Group Announces Dividend

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

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. ARK Investment Management LLC acquired a new position in Alibaba Group in the 3rd quarter worth approximately $37,565,000. Great Hill Capital LLC acquired a new position in shares of Alibaba Group during the third quarter worth approximately $2,207,000. Jennison Associates LLC lifted its holdings in shares of Alibaba Group by 11.9% during the fourth quarter. Jennison Associates LLC now owns 54,235 shares of the specialty retailer's stock worth $7,950,000 after buying an additional 5,760 shares during the last quarter. Thornburg Investment Management Inc. lifted its holdings in shares of Alibaba Group by 14.3% during the third quarter. Thornburg Investment Management Inc. now owns 553,384 shares of the specialty retailer's stock worth $98,906,000 after buying an additional 69,232 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new position in shares of Alibaba Group during the fourth quarter worth approximately $21,266,000. 13.47% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.