25,685 Alibaba Group Holding Limited $BABA Shares Sold by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers LP reduced its Alibaba stake by 12.9%, selling 25,685 shares in the third quarter and retaining 173,685 shares valued at approximately $18.7 million.
• Alibaba’s latest quarterly results showed an EPS miss of $1.26 versus the $1.94 consensus, although revenue rose 8.6% year over year to $39.64 billion.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $182.89, well above the reported share price of $111.13.

Sustainable Growth Advisers LP lessened its holdings in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 12.9% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 173,685 shares of the specialty retailer's stock after selling 25,685 shares during the quarter. Sustainable Growth Advisers LP's holdings in Alibaba Group were worth $18,678,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. AMF Tjanstepension AB raised its holdings in Alibaba Group by 4.1% during the first quarter. AMF Tjanstepension AB now owns 2,206,634 shares of the specialty retailer's stock worth $276,844,000 after buying an additional 86,613 shares during the last quarter. Altshuler Shaham Ltd acquired a new position in shares of Alibaba Group during the fourth quarter valued at about $160,410,000. Bamco Inc. NY grew its holdings in shares of Alibaba Group by 6.8% during the fourth quarter. Bamco Inc. NY now owns 1,071,647 shares of the specialty retailer's stock valued at $157,082,000 after buying an additional 67,948 shares during the last quarter. Bbfit Investments PTE Ltd. bought a new stake in shares of Alibaba Group during the fourth quarter worth about $106,828,000. Finally, Baird Financial Group Inc. increased its position in shares of Alibaba Group by 6.7% during the second quarter. Baird Financial Group Inc. now owns 754,749 shares of the specialty retailer's stock worth $72,441,000 after acquiring an additional 47,358 shares in the last quarter. Institutional investors own 13.47% of the company's stock.

Alibaba Group Trading Down 0.0%

NYSE BABA opened at $111.13 on Friday. The firm has a market capitalization of $276.46 billion, a P/E ratio of 26.91, a PEG ratio of 1.45 and a beta of 0.47. The business has a fifty day simple moving average of $114.74 and a 200 day simple moving average of $119.13. Alibaba Group Holding Limited has a 12 month low of $91.99 and a 12 month high of $182.50. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.21.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.68). The company had revenue of $39.64 billion for the quarter, compared to the consensus estimate of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. Alibaba Group's revenue was up 8.6% on a year-over-year basis. During the same quarter last year, the business posted $14.75 earnings per share. On average, analysts predict that Alibaba Group Holding Limited will post 5.74 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on BABA shares. Citigroup upped their target price on shares of Alibaba Group from $190.00 to $193.00 and gave the stock a "buy" rating in a report on Thursday, October 8th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $192.00 price target on shares of Alibaba Group in a research report on Thursday, October 8th. Nomura cut their price target on Alibaba Group from $207.00 to $178.00 and set a "buy" rating for the company in a research note on Thursday, June 25th. Susquehanna lifted their price target on Alibaba Group from $185.00 to $190.00 and gave the company a "positive" rating in a research note on Friday, August 28th. Finally, Weiss Ratings raised Alibaba Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 2nd. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $182.89.

Insider Transactions at Alibaba Group

In related news, insider Fang Jiang sold 885,272 shares of the firm's stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $13.55, for a total transaction of $11,995,435.60. Following the transaction, the insider directly owned 4,679,097 shares of the company's stock, valued at $63,401,764.35. This trade represents a 15.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Yongming Wu purchased 350,000 shares of the business's stock in a transaction that occurred on Monday, August 24th. The shares were purchased at an average price of $14.24 per share, for a total transaction of $4,984,000.00. Following the completion of the acquisition, the chief executive officer owned 1,364,418 shares of the company's stock, valued at $19,429,312.32. The trade was a 34.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have sold 999,971 shares of company stock worth $13,563,304. 12.50% of the stock is owned by insiders.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Bernstein identified Alibaba as one of its top Chinese AI investment ideas, supporting the view that the company’s cloud and artificial-intelligence businesses could become major growth drivers. Bernstein Says Tencent and Alibaba Stocks Are Its Top AI Plays in China
• Positive Sentiment: China approved Alibaba’s AI models for use in Apple Intelligence and other Apple handsets, creating a high-profile commercial distribution channel for its technology. Alibaba AI models cleared for use in Apple Intelligence in China
• Positive Sentiment: Alibaba is preparing for a potentially record-setting Singles’ Day event, with about one million brands participating. Strong promotional activity could support transaction volume and consumer engagement. Alibaba sets sights on record-breaking Singles’ Day
• Positive Sentiment: Erste Group Bank raised its earnings estimates for Alibaba, while JPMorgan maintained an Overweight rating and a $200 target, indicating substantial potential upside despite lowering its target from $210. JPMorgan sees upside for Alibaba
• Positive Sentiment: Alibaba’s Qwen AI smart glasses broaden its consumer-hardware strategy and position the company to compete with Meta in emerging AI-enabled devices. Alibaba Unveils New Qwen AI Smart Glasses
• Neutral Sentiment: Recent comparisons with Coupang and MercadoLibre describe Alibaba as a value-oriented global e-commerce and cloud leader, but highlight faster growth from its international peers. Alibaba vs. Coupang
• Negative Sentiment: A Seeking Alpha analysis noted that revenue growth is increasingly driven by Quick Commerce and Cloud, while traditional e-commerce is declining. AI investment is increasing cash burn, and rising capital-expenditure expectations could delay the recovery in earnings and margins. Alibaba cloud investment analysis
• Negative Sentiment: The broader selloff reflects investor concerns about weaker earnings, profitability versus growth priorities, regulatory risk, and disappointing recent results, including an EPS miss despite revenue growth. Asian ADR weakness also added market pressure. Asian ADRs fall sharply

About Alibaba Group

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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