JPMorgan Chase & Co. Has Lowered Expectations for Alibaba Group (NYSE:BABA) Stock Price

Key Points

• JPMorgan lowered Alibaba’s price target from $210 to $200 while maintaining an “overweight” rating, implying approximately 80.7% upside from the reported share price.
• Analyst sentiment remains broadly positive: Alibaba has a consensus “Moderate Buy” rating and an average price target of $182.89, despite differing targets from firms including Citigroup, HSBC, Nomura and Bernstein.
• Alibaba shares fell 0.6% to $110.67, while its latest quarterly results showed revenue rising 8.6% year over year but earnings per share missing analyst expectations.

Alibaba Group (NYSE:BABA - Get Free Report) had its price target dropped by equities researchers at JPMorgan Chase & Co. from $210.00 to $200.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the specialty retailer's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 80.71% from the stock's current price.

Several other brokerages also recently commented on BABA. Citigroup lifted their target price on shares of Alibaba Group from $190.00 to $193.00 and gave the stock a "buy" rating in a research note on Thursday. HSBC set a $170.00 price target on shares of Alibaba Group in a research report on Thursday, July 9th. Nomura decreased their price objective on shares of Alibaba Group from $207.00 to $178.00 and set a "buy" rating on the stock in a research report on Thursday, June 25th. Benchmark reaffirmed a "buy" rating on shares of Alibaba Group in a research note on Thursday, August 20th. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and set a $165.00 price objective on shares of Alibaba Group in a research note on Monday, September 7th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $182.89.

Alibaba Group Trading Down 0.6%

Shares of NYSE BABA traded down $0.69 during midday trading on Monday, reaching $110.67. The company had a trading volume of 3,233,444 shares, compared to its average volume of 11,600,421. The stock has a market cap of $275.10 billion, a PE ratio of 26.81, a price-to-earnings-growth ratio of 1.47 and a beta of 0.47. Alibaba Group has a one year low of $91.99 and a one year high of $182.50. The firm's fifty day moving average price is $116.10 and its 200-day moving average price is $119.55. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.21.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.68). Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The company had revenue of $39.64 billion for the quarter, compared to the consensus estimate of $39.52 billion. During the same quarter in the previous year, the business earned $14.75 earnings per share. Alibaba Group's revenue was up 8.6% compared to the same quarter last year. On average, equities research analysts anticipate that Alibaba Group will post 5.89 earnings per share for the current year.

Insider Buying and Selling

In other Alibaba Group news, insider Fang Jiang sold 885,272 shares of the company's stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $13.55, for a total transaction of $11,995,435.60. Following the transaction, the insider owned 4,679,097 shares in the company, valued at approximately $63,401,764.35. This represents a 15.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Siying Yu sold 6,764 shares of the company's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $13.58, for a total value of $91,855.12. Following the transaction, the general counsel owned 613,965 shares in the company, valued at $8,337,644.70. This trade represents a 1.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 999,971 shares of company stock valued at $13,563,304 over the last quarter. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alibaba Group

Several hedge funds have recently made changes to their positions in BABA. Accredited Investors Inc. raised its holdings in Alibaba Group by 2.9% in the 1st quarter. Accredited Investors Inc. now owns 2,858 shares of the specialty retailer's stock worth $359,000 after purchasing an additional 80 shares during the period. Mainstream Capital Management LLC lifted its position in Alibaba Group by 1.1% during the first quarter. Mainstream Capital Management LLC now owns 8,597 shares of the specialty retailer's stock valued at $1,079,000 after purchasing an additional 93 shares in the last quarter. Blue Trust Inc. grew its holdings in Alibaba Group by 0.6% during the first quarter. Blue Trust Inc. now owns 16,457 shares of the specialty retailer's stock valued at $2,065,000 after purchasing an additional 94 shares during the period. Banque Transatlantique SA grew its holdings in Alibaba Group by 0.5% during the fourth quarter. Banque Transatlantique SA now owns 20,615 shares of the specialty retailer's stock valued at $3,022,000 after purchasing an additional 95 shares during the period. Finally, Hoey Investments Inc. grew its holdings in Alibaba Group by 95.2% during the first quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer's stock valued at $26,000 after purchasing an additional 100 shares during the period. 13.47% of the stock is currently owned by institutional investors.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem connecting consumers, merchants, brands and businesses through online marketplaces and related services.

The company's China commerce businesses include Taobao and Tmall, while its international commerce operations include Alibaba.com, AliExpress, Lazada and Trendyol. Alibaba also provides logistics services through Cainiao, consumer services through platforms such as Ele.me and Freshippo, and digital media and entertainment offerings.

Alibaba Cloud provides cloud computing, data management, artificial intelligence and other technology services to businesses and organizations.

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