Traders Purchase High Volume of Alibaba Group Call Options (NYSE:BABA)

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) saw some unusual options trading activity on Wednesday. Traders bought 1,387,134 call options on the company. This is an increase of 334% compared to the typical daily volume of 319,866 call options.

Hedge Funds Weigh In On Alibaba Group

Several large investors have recently modified their holdings of BABA. North Ridge Wealth Advisors Inc. purchased a new position in shares of Alibaba Group in the first quarter worth about $26,000. Summit Securities Group LLC grew its stake in Alibaba Group by 100.3% during the first 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 in the last quarter. Ransom Advisory Ltd purchased a new position in Alibaba Group during the first quarter valued at approximately $26,000. 1248 Management LLC purchased a new position in Alibaba Group during the first quarter valued at approximately $26,000. Finally, Hazlett Burt & Watson Inc. grew its stake in Alibaba Group by 1,960.0% during the first quarter. Hazlett Burt & Watson Inc. now owns 206 shares of the specialty retailer's stock valued at $27,000 after acquiring an additional 196 shares in the last quarter. Hedge funds and other institutional investors own 13.47% of the company's stock.

Analysts Set New Price Targets

A number of research firms have commented on BABA. Arete Research upgraded shares of Alibaba Group to a "strong-buy" rating in a report on Friday, February 28th. Sanford C. Bernstein upgraded shares of Alibaba Group from a "market perform" rating to an "outperform" rating and raised their price target for the stock from $104.00 to $165.00 in a report on Tuesday, February 25th. Barclays raised their price target on shares of Alibaba Group from $130.00 to $180.00 and gave the stock an "overweight" rating in a report on Friday, February 21st. Loop Capital set a $176.00 price target on shares of Alibaba Group in a report on Friday, May 16th. Finally, JPMorgan Chase & Co. raised their price target on shares of Alibaba Group from $125.00 to $170.00 and gave the stock an "overweight" rating in a report on Friday, February 21st. Fifteen analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $154.21.

Alibaba Group Stock Performance

BABA stock traded down $3.91 during mid-day trading on Friday, hitting $112.71. The company had a trading volume of 13,309,167 shares, compared to its average volume of 19,998,473. The firm has a market cap of $268.93 billion, a PE ratio of 16.29, a price-to-earnings-growth ratio of 0.61 and a beta of 0.22. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.48 and a current ratio of 1.48. Alibaba Group has a 12 month low of $71.80 and a 12 month high of $148.43. The stock's fifty day moving average price is $118.35 and its two-hundred day moving average price is $111.10.

Alibaba Group Cuts Dividend

The firm also recently announced a -- dividend, which will be paid on Thursday, July 10th. Stockholders of record on Thursday, June 12th will be paid a $0.95 dividend. The ex-dividend date of this dividend is Thursday, June 12th. This represents a dividend yield of 0.8%. Alibaba Group's payout ratio is 13.83%.

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.