Alibaba Group (NYSE:BABA) Trading Down 3.5% - Here's Why

Key Points

• Alibaba Group's stock fell 3.5% to $131.66, with a trading volume significantly down by 36% from its average.
• Wall Street analysts have varied opinions on Alibaba, with price targets ranging from $153.00 to $187.00, reflecting a general consensus rating of "Buy."
• Several institutional investors significantly increased their stakes in Alibaba, including Kingstone Capital, which lifted its stake by an astounding 1,349,768.3%.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) dropped 3.5% on Thursday . The company traded as low as $130.06 and last traded at $131.66. Approximately 13,481,986 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 21,205,117 shares. The stock had previously closed at $136.45.

Wall Street Analysts Forecast Growth

BABA has been the subject of a number of research analyst reports. Robert W. Baird boosted their price target on Alibaba Group from $142.00 to $153.00 and gave the company an "outperform" rating in a report on Tuesday. UBS Group restated a "buy" rating and set a $162.00 price objective on shares of Alibaba Group in a research note on Sunday. Citigroup upped their price objective on Alibaba Group from $148.00 to $187.00 and gave the stock a "buy" rating in a research note on Tuesday. Sanford C. Bernstein restated an "outperform" rating and set a $160.00 price objective on shares of Alibaba Group in a research note on Saturday. Finally, Wall Street Zen downgraded Alibaba Group from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. One equities research analyst has rated the stock with a Strong Buy rating and thirteen have given a Buy rating to the stock. According to MarketBeat.com, Alibaba Group currently has a consensus rating of "Buy" and an average price target of $163.53.

Alibaba Group Stock Performance

The firm has a market cap of $312.34 billion, a price-to-earnings ratio of 15.23, a price-to-earnings-growth ratio of 1.99 and a beta of 0.11. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.55 and a quick ratio of 1.55. The company has a fifty day moving average price of $118.82 and a two-hundred day moving average price of $122.01.

Institutional Investors Weigh In On Alibaba Group

Several hedge funds have recently modified their holdings of BABA. Kingstone Capital Partners Texas LLC lifted its stake in Alibaba Group by 1,349,768.3% in the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 49,013,718 shares of the specialty retailer's stock worth $5,558,646,000 after acquiring an additional 49,010,087 shares in the last quarter. Norges Bank purchased a new stake in Alibaba Group in the 2nd quarter worth about $527,243,000. Mirae Asset Global Investments Co. Ltd. lifted its stake in Alibaba Group by 3,214.5% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,378,671 shares of the specialty retailer's stock worth $578,992,000 after acquiring an additional 4,246,564 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Alibaba Group by 85.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,557,495 shares of the specialty retailer's stock worth $1,131,558,000 after acquiring an additional 3,947,460 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in Alibaba Group by 22.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 15,648,064 shares of the specialty retailer's stock worth $2,069,144,000 after acquiring an additional 2,885,154 shares in the last quarter. 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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