Erste Group Bank Boosts Earnings Estimates for Alibaba Group

Key Points

• Erste Group Bank raised Alibaba’s FY2027 EPS forecast to $5.84 from $5.71 and initiated a FY2028 estimate of $8.46, though its FY2027 projection remains below the $6.28 consensus.
• Analyst sentiment is broadly positive: Alibaba has a “Moderate Buy” consensus rating from MarketBeat, with a consensus price target of $186.90.
• Insider selling increased recently, including President J. Michael Evans’s sale of 720,000 shares worth about $68.4 million; insiders sold roughly $70.8 million of stock during the quarter.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Equities research analysts at Erste Group Bank raised their FY2027 earnings per share (EPS) estimates for shares of Alibaba Group in a note issued to investors on Monday, July 27th. Erste Group Bank analyst S. Lingnau now anticipates that the specialty retailer will post earnings per share of $5.84 for the year, up from their previous forecast of $5.71. The consensus estimate for Alibaba Group's current full-year earnings is $6.28 per share. Erste Group Bank also issued estimates for Alibaba Group's FY2028 earnings at $8.46 EPS.

A number of other research analysts also recently issued reports on BABA. Weiss Ratings restated a "hold (c+)" rating on shares of Alibaba Group in a research report on Wednesday, May 27th. JPMorgan Chase & Co. lifted their target price on shares of Alibaba Group from $200.00 to $205.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. BNP Paribas Exane initiated coverage on shares of Alibaba Group in a report on Wednesday, April 29th. They issued an "outperform" rating and a $209.00 target price on the stock. Barclays upped their price target on shares of Alibaba Group from $186.00 to $195.00 and gave the company an "overweight" rating in a research report on Thursday, May 14th. Finally, Zacks Research raised Alibaba Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $186.90.

Alibaba Group Stock Performance

Shares of BABA stock opened at $116.19 on Friday. The stock has a market capitalization of $278.50 billion, a PE ratio of 19.08, a PEG ratio of 2.12 and a beta of 0.51. The business's 50 day simple moving average is $112.99 and its 200 day simple moving average is $132.92. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28. Alibaba Group has a one year low of $91.99 and a one year high of $192.67.

Alibaba Group (NYSE:BABA - Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.The firm had revenue of $35.30 billion for the quarter.

Alibaba Group Dividend Announcement

The business also recently declared an annual dividend, which was paid on Monday, July 13th. Shareholders of record on Thursday, June 11th were paid a $1.05 dividend. This represents a yield of 93.0%. The ex-dividend date of this dividend was Thursday, June 11th. Alibaba Group's payout ratio is 16.91%.

Insider Transactions at Alibaba Group

In other news, insider Fang Jiang sold 4,898 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.09, for a total value of $59,216.82. Following the completion of the sale, the insider directly owned 5,559,511 shares in the company, valued at $67,214,487.99. This trade represents a 0.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President J. Michael Evans sold 720,000 shares of the company's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $94.95, for a total value of $68,364,000.00. Following the transaction, the president directly owned 28,000 shares in the company, valued at approximately $2,658,600. This trade represents a 96.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 920,303 shares of company stock valued at $70,796,370. 12.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Alibaba Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in Alibaba Group by 40.4% during the fourth quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer's stock worth $289,000 after buying an additional 981 shares during the last quarter. AQR Capital Management LLC acquired a new position in shares of Alibaba Group during the first quarter valued at about $254,000. Bank of Nova Scotia increased its position in shares of Alibaba Group by 313.0% during the second quarter. Bank of Nova Scotia now owns 21,778 shares of the specialty retailer's stock worth $2,470,000 after acquiring an additional 16,505 shares in the last quarter. Daiwa Securities Group Inc. bought a new stake in shares of Alibaba Group during the second quarter worth about $1,613,000. Finally, Ieq Capital LLC raised its holdings in shares of Alibaba Group by 51.9% in the 2nd quarter. Ieq Capital LLC now owns 70,060 shares of the specialty retailer's stock worth $7,946,000 after acquiring an additional 23,925 shares during the last quarter. Institutional investors own 13.47% of the company's stock.

Alibaba Group News Roundup

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: Wall Street analysts maintain an average Buy recommendation for Alibaba. While the consensus may be overly optimistic, the rating provides a supportive backdrop and suggests analysts see upside from current levels. Is Alibaba a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: A valuation analysis estimated that Alibaba could be approximately 41% undervalued based on discounted cash flow assumptions. The analysis suggests the market may already be pricing in substantial pessimism, including potential European Union regulatory fines. Alibaba Stock May Be 41% Undervalued
• Positive Sentiment: Jack Ma-backed OceanBase is reportedly seeking as much as $443 million to fund expansion in AI database services. Additional capital could help the Alibaba-linked business operate more independently and strengthen Alibaba’s broader AI and cloud ecosystem. Jack Ma-Backed OceanBase Seeks Funding for AI Push
• Neutral Sentiment: Alibaba advanced but continued to trail the broader market during the latest session, indicating that positive trading momentum has not yet translated into a clear change in its relative performance. Alibaba Ascends but Remains Behind Market
• Negative Sentiment: Analysts have highlighted weakening cash flow as a risk, with heavy spending on AI, cloud computing and quick-commerce investments outpacing cash generation despite improving cloud revenue. This could constrain returns and weigh on long-term growth if investment does not produce stronger profits. Will Alibaba’s Cash Flow Weakness Hurt Growth?
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Alibaba investors. Although no findings or liability were established, the investigation adds legal and headline risk to the shares. Pomerantz Investor Alert

About Alibaba Group

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.

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