Alibaba Group Holding Limited $BABA Holdings Trimmed by IvyRock Asset Management HK Ltd

Key Points

• IvyRock Asset Management HK cut its Alibaba stake by 3.6%, selling 8,900 shares in the third quarter. It still held 237,800 shares worth about $25.6 million, making Alibaba its third-largest portfolio holding.
• Alibaba shares were reported down 6.9%, while the company’s latest quarterly EPS of $1.26 missed the $1.94 consensus estimate; revenue of $39.64 billion slightly topped expectations and grew 8.6% year over year.
• Investors face potential regulatory headwinds: reports of possible U.S. restrictions on Chinese AI firms’ access to advanced chips raised concerns about Alibaba Cloud. Analysts’ consensus rating remained “Moderate Buy,” with an average price target of $183.53.

IvyRock Asset Management HK Ltd lessened its stake in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 3.6% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 237,800 shares of the specialty retailer's stock after selling 8,900 shares during the quarter. Alibaba Group comprises approximately 13.5% of IvyRock Asset Management HK Ltd's investment portfolio, making the stock its 3rd biggest holding. IvyRock Asset Management HK Ltd's holdings in Alibaba Group were worth $25,573,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the stock. Continuum Advisory LLC bought a new stake in shares of Alibaba Group during the second quarter valued at approximately $28,000. GK Wealth Management LLC acquired a new stake in shares of Alibaba Group in the third quarter valued at approximately $32,000. Latitude Advisors LLC acquired a new stake in shares of Alibaba Group in the third quarter valued at approximately $43,000. Silver Grove Financial Group Inc. increased its holdings in shares of Alibaba Group by 107.4% in the third quarter. Silver Grove Financial Group Inc. now owns 618 shares of the specialty retailer's stock valued at $66,000 after purchasing an additional 320 shares in the last quarter. Finally, S&G Foundation bought a new position in Alibaba Group in the 2nd quarter worth approximately $77,000. 13.47% of the stock is owned by institutional investors.

Alibaba Group Stock Down 6.9%

Shares of NYSE BABA opened at $94.47 on Friday. The firm has a market capitalization of $235.03 billion, a PE ratio of 44.53, a price-to-earnings-growth ratio of 1.29 and a beta of 0.44. 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 Holding Limited has a 1 year low of $91.99 and a 1 year high of $181.10. The firm's 50-day moving average is $107.21 and its 200-day moving average is $123.61.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its quarterly earnings results on Friday, August 14th. The specialty retailer reported $1.26 EPS for the quarter, missing the consensus estimate of $1.94 by ($0.68). The business had revenue of $39.64 billion for the quarter, compared to analyst estimates of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The firm's quarterly revenue was up 8.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $14.75 EPS. Equities analysts expect that Alibaba Group Holding Limited will post 5.89 EPS for the current year.

Insider Transactions at Alibaba Group

In other Alibaba Group news, CFO Hong Xu sold 103,046 shares of Alibaba Group stock in a transaction on Friday, September 25th. The shares were sold at an average price of $13.68, for a total transaction of $1,409,669.28. Following the completion of the sale, the chief financial officer owned 406,450 shares of the company's stock, valued at approximately $5,560,236. The trade was a 20.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 885,272 shares of the company's stock in a transaction on 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 sale, the insider owned 4,679,097 shares of the company's stock, valued at $63,401,764.35. The trade was a 15.91% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 999,971 shares of company stock valued at $13,563,304. 12.50% of the stock is currently owned by company insiders.

Alibaba Group News Summary

Here's some of the latest news about BABA:

• Neutral Sentiment: Alibaba is pursuing a Hong Kong listing for semiconductor subsidiary T-Head. A separate listing could help showcase or fund its domestic chip business, though its prospects are complicated by the same U.S. chip-access concerns affecting the shares. Alibaba and Tencent shares fall on report of possible U.S. curbs
• Negative Sentiment: Reports that the U.S. Commerce Department is preparing rules to restrict Chinese AI firms from remotely accessing advanced chips hosted in overseas data centers raised concerns about Alibaba Cloud’s ability to obtain computing capacity. Alibaba risks a cloud setback from new U.S. AI chip rules
• Negative Sentiment: Additional scrutiny centers on reported links between Alibaba and Singapore-based Megaspeed International, an Nvidia partner. Allegations that financing through Singapore and Malaysia units was tied to acquiring Nvidia servers could heighten regulatory and reputational risks; the claims remain allegations. Report on Alibaba-Megaspeed financing links

Analysts Set New Price Targets

BABA has been the topic of several research reports. JPMorgan Chase & Co. reduced their price objective on Alibaba Group from $210.00 to $200.00 and set an "overweight" rating on the stock in a report on Monday, October 12th. Piper Sandler lowered Alibaba Group to a "hold" rating in a research report on Thursday, October 8th. Citigroup lifted their target price on Alibaba Group from $190.00 to $193.00 and gave the company a "buy" rating in a research note on Thursday, October 8th. Susquehanna boosted their target price on Alibaba Group from $185.00 to $190.00 and gave the stock a "positive" rating in a research report on Friday, August 28th. Finally, Robert W. Baird cut their price target on Alibaba Group from $164.00 to $160.00 and set an "outperform" rating on the stock in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $183.53.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates digital platforms that connect consumers, merchants, businesses and other participants in commerce. Its businesses include China-focused marketplaces such as Taobao and Tmall, international platforms including AliExpress and Alibaba.com, and Alibaba Cloud, which provides cloud computing and related technology services. The group also has operations in areas such as logistics, local services and digital media.

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