Alibaba Group (NYSE:BABA) Trading Up 2.8% - Here's Why

Key Points

• Alibaba Group's stock price increased by 2.8% during mid-day trading, reaching a high of $127.93, despite a volume decrease of 56% from the average.
• Analyst ratings for Alibaba vary, with a consensus rating of "Moderate Buy" and a target price of $153.29, as brokerages continue to adjust their price targets.
• The company has announced a dividend of $0.95 with a yield of 80.0%, reflecting a payout ratio of 12.75% on the recent cut to dividends.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s stock price was up 2.8% during mid-day trading on Wednesday . The stock traded as high as $127.93 and last traded at $125.88. Approximately 9,490,103 shares traded hands during trading, a decline of 56% from the average daily volume of 21,420,828 shares. The stock had previously closed at $122.42.

Analyst Ratings Changes

A number of brokerages have commented on BABA. Morgan Stanley set a $180.00 price target on shares of Alibaba Group in a research report on Wednesday, May 14th. Arete downgraded shares of Alibaba Group from a "buy" rating to a "neutral" rating and set a $153.00 price target for the company. in a research note on Tuesday, June 24th. Loop Capital set a $176.00 price target on shares of Alibaba Group in a research note on Friday, May 16th. Wall Street Zen downgraded shares of Alibaba Group from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, Barclays decreased their price target on shares of Alibaba Group from $180.00 to $145.00 and set an "overweight" rating for the company in a research note on Tuesday, July 15th. Three equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company's stock. According to data from MarketBeat, Alibaba Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $153.29.

Alibaba Group Stock Performance

The company has a market capitalization of $302.80 billion, a PE ratio of 17.04, a PEG ratio of 1.75 and a beta of 0.17. The business's 50-day moving average is $116.00 and its 200-day moving average is $119.86. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.55 and a current ratio of 1.55.

Alibaba Group Cuts Dividend

The firm also recently announced a -- dividend, which was paid on Thursday, July 10th. Shareholders of record on Thursday, June 12th were given a $0.95 dividend. The ex-dividend date of this dividend was Thursday, June 12th. This represents a yield of 80.0%. Alibaba Group's payout ratio is 12.75%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Accent Capital Management LLC grew its holdings in Alibaba Group by 5.5% during the first quarter. Accent Capital Management LLC now owns 1,582 shares of the specialty retailer's stock worth $209,000 after acquiring an additional 82 shares during the period. Greenleaf Trust boosted its holdings in Alibaba Group by 1.0% in the 1st quarter. Greenleaf Trust now owns 8,336 shares of the specialty retailer's stock worth $1,102,000 after buying an additional 85 shares during the last quarter. Marcum Wealth LLC raised its holdings in Alibaba Group by 3.2% in the 1st quarter. Marcum Wealth LLC now owns 2,745 shares of the specialty retailer's stock valued at $363,000 after acquiring an additional 86 shares during the last quarter. Wedbush Securities Inc. raised its holdings in Alibaba Group by 2.1% in the 2nd quarter. Wedbush Securities Inc. now owns 4,237 shares of the specialty retailer's stock valued at $480,000 after acquiring an additional 88 shares during the last quarter. Finally, Principal Securities Inc. boosted its holdings in Alibaba Group by 0.5% in the 1st quarter. Principal Securities Inc. now owns 16,823 shares of the specialty retailer's stock valued at $2,225,000 after purchasing an additional 89 shares during 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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