Alibaba Group Holding Limited $BABA Position Decreased by HCEP Management Ltd

Key Points

• HCEP Management cut its Alibaba stake by 12.4% in the fourth quarter, selling 68,425 shares and leaving it with 482,703 shares valued at about $70.8 million. Alibaba remains the fund’s largest holding, accounting for 57.7% of its portfolio.
• Institutional interest is mixed but still significant, with some large investors sharply increasing positions, including Northwestern Mutual Wealth Management and Capital World Investors. Overall, hedge funds and institutions own 13.47% of Alibaba’s shares.
• Recent developments are a blend of positives and negatives: Alibaba is reportedly bidding about $1.5 billion for grocery delivery firm Pupu, while analysts remain mostly constructive on the stock. However, regulatory scrutiny, securities-fraud investigations, and reports of a U.S. Defense Department list could weigh on sentiment.

HCEP Management Ltd lessened its holdings in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 12.4% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 482,703 shares of the specialty retailer's stock after selling 68,425 shares during the quarter. Alibaba Group makes up 57.7% of HCEP Management Ltd's portfolio, making the stock its largest holding. HCEP Management Ltd's holdings in Alibaba Group were worth $70,755,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of BABA. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Alibaba Group by 7,680.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock worth $881,554,000 after acquiring an additional 5,936,847 shares during the last quarter. Capital World Investors raised its position in shares of Alibaba Group by 1,074.9% during the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer's stock valued at $1,079,229,000 after purchasing an additional 5,524,354 shares during the period. Norges Bank bought a new stake in shares of Alibaba Group during the 4th quarter valued at $594,477,000. Artisan Partners Limited Partnership bought a new stake in shares of Alibaba Group during the 3rd quarter valued at $290,208,000. Finally, Trivest Advisors Ltd bought a new stake in shares of Alibaba Group during the 3rd quarter valued at $202,126,000. Hedge funds and other institutional investors own 13.47% of the company's stock.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Alibaba reportedly offered about $1.5 billion to buy grocery delivery firm Pupu, a move that would expand its instant-retail and grocery push and sharpen its competition with Meituan. Alibaba Bids $1.5B for Pupu to Challenge Meituan in Grocery Delivery
• Positive Sentiment: Several recent analyst notes remain constructive, with price targets clustering well above the current trading range, suggesting some investors still see meaningful upside.
• Neutral Sentiment: Alibaba also named a new CEO for DingTalk after internal debate over AI strategy, signaling ongoing management changes but not an immediate financial impact. Alibaba Names 34-Year-Old Tech Geek as DingTalk’s New CEO
• Negative Sentiment: Beijing reportedly criticized discount-heavy promotions during the 618 shopping festival, adding fresh regulatory risk for Alibaba and other Chinese e-commerce leaders. Alibaba and JD Slide After Beijing Rebuke
• Negative Sentiment: Two securities-fraud law firms announced continuing investigations into Alibaba, which can further hurt sentiment by raising litigation and governance concerns. Securities Fraud Investigation Into Alibaba Group Holding Ltd. (BABA) Continues
• Negative Sentiment: The stock is also being weighed by reports that Alibaba was added to a U.S. Defense Department list of companies linked to China’s military, which could increase institutional caution toward the ADR. Is Alibaba Group Holding Limited (BABA) A Good Stock To Buy Now?

Alibaba Group Price Performance

Shares of Alibaba Group stock opened at $112.71 on Friday. The stock has a 50 day moving average of $130.07 and a 200 day moving average of $143.93. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21. The firm has a market cap of $270.39 billion, a PE ratio of 18.51, a PEG ratio of 1.93 and a beta of 0.47. Alibaba Group Holding Limited has a 12 month low of $103.71 and a 12 month high of $192.67.

Alibaba Group (NYSE:BABA - Get Free Report) last announced its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The firm had revenue of $35.30 billion for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. On average, research analysts expect that Alibaba Group Holding Limited will post 6.75 EPS for the current fiscal year.

Alibaba Group Dividend Announcement

The firm also recently announced an annual dividend, which will be paid on Monday, July 13th. Stockholders of record on Thursday, June 11th will be given a dividend of $1.05 per share. This represents a dividend yield of 93.0%. The ex-dividend date is Thursday, June 11th. Alibaba Group's dividend payout ratio is currently 16.91%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on BABA shares. DZ Bank downgraded shares of Alibaba Group from a "buy" rating to a "hold" rating and set a $135.00 price objective on the stock. in a research report on Friday, March 20th. HSBC raised their price objective on shares of Alibaba Group from $172.00 to $180.00 in a research report on Thursday, May 14th. Susquehanna raised their price objective on shares of Alibaba Group from $170.00 to $185.00 and gave the company a "positive" rating in a research report on Friday, May 15th. Morgan Stanley raised their price objective on shares of Alibaba Group from $180.00 to $190.00 and gave the company an "overweight" rating in a research report on Thursday, May 14th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Alibaba Group in a research report on Wednesday, May 27th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $188.76.

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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