Alibaba Group (NYSE:BABA) Trading Down 4.2% Following Analyst Downgrade

Key Points

• Alibaba Group shares fell 4.2% after JPMorgan Chase & Co. downgraded their price target from $245.00 to $240.00, despite maintaining an overweight rating.
• Other analysts maintain a generally positive outlook, with UBS Group issuing a "buy" rating and a target price of $162.00, and overall, the company has an average target price of $185.71.
• Institutional investors increased their stake in Alibaba Group, with hedge funds making multiple new purchases valued at approximately $26,000 each in the first quarter.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) shares fell 4.2% during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $245.00 to $240.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Alibaba Group traded as low as $172.30 and last traded at $173.60. 21,059,619 shares traded hands during trading, a decline of 2% from the average session volume of 21,446,521 shares. The stock had previously closed at $181.12.

Other equities analysts have also issued research reports about the company. UBS Group reissued a "buy" rating and set a $162.00 target price on shares of Alibaba Group in a research note on Sunday, August 31st. Arete Research raised Alibaba Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Benchmark increased their target price on Alibaba Group from $176.00 to $195.00 and gave the stock a "buy" rating in a research note on Tuesday, September 2nd. Arete raised Alibaba Group from a "neutral" rating to a "buy" rating and set a $152.00 target price on the stock in a research note on Wednesday, September 3rd. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Alibaba Group in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and an average target price of $185.71.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. North Ridge Wealth Advisors Inc. purchased a new position in shares of Alibaba Group in the 1st quarter valued at about $26,000. Summit Securities Group LLC increased its holdings in shares of Alibaba Group by 100.3% in the 1st quarter. Summit Securities Group LLC now owns 200 shares of the specialty retailer's stock valued at $26,000 after acquiring an additional 59,000 shares during the last quarter. Ransom Advisory Ltd purchased a new position in Alibaba Group during the 1st quarter worth approximately $26,000. 1248 Management LLC purchased a new position in Alibaba Group during the 1st quarter worth approximately $26,000. Finally, Rosenberg Matthew Hamilton purchased a new position in Alibaba Group during the 2nd quarter worth approximately $26,000. Hedge funds and other institutional investors own 13.47% of the company's stock.

Alibaba Group Stock Down 4.2%

The business has a 50 day moving average of $144.47 and a 200-day moving average of $127.08. The stock has a market cap of $413.88 billion, a PE ratio of 20.19, a P/E/G ratio of 2.14 and a beta of 0.18. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 0.19.

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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