Alibaba Group Holding Limited $BABA Shares Sold by North of South Capital LLP

Key Points

• North of South Capital cut its Alibaba position by 72.2% in the third quarter, selling 17,910 shares and retaining 6,906 shares valued at $743,000.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $183.53; two analysts rated the stock Strong Buy, 14 Buy, and five Hold.
• Alibaba shares traded at $94.30, well below their 200-day average of $123.22. The latest reported quarter’s EPS missed estimates ($1.26 versus $1.94), while revenue slightly beat forecasts and rose 8.6% year over year.

North of South Capital LLP lowered its holdings in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 72.2% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,906 shares of the specialty retailer's stock after selling 17,910 shares during the quarter. Alibaba Group accounts for about 0.1% of North of South Capital LLP's investment portfolio, making the stock its 25th biggest holding. North of South Capital LLP's holdings in Alibaba Group were worth $743,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. Continuum Advisory LLC purchased a new stake in shares of Alibaba Group during the second quarter valued at $28,000. GK Wealth Management LLC purchased a new position in Alibaba Group in the 3rd quarter worth about $32,000. Latitude Advisors LLC bought a new position in Alibaba Group during the 3rd quarter valued at about $43,000. Silver Grove Financial Group Inc. lifted its stake in Alibaba Group by 107.4% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 618 shares of the specialty retailer's stock valued at $66,000 after acquiring an additional 320 shares during the period. Finally, S&G Foundation bought a new position in Alibaba Group during the 2nd quarter valued at about $77,000. Hedge funds and other institutional investors own 13.47% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Benchmark reiterated a "buy" rating on shares of Alibaba Group in a research note on Thursday, August 20th. Weiss Ratings upgraded shares of Alibaba Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 2nd. Barclays raised their target price on shares of Alibaba Group from $195.00 to $200.00 and gave the stock an "overweight" rating in a report on Friday, August 21st. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $165.00 target price on shares of Alibaba Group in a research report on Monday, September 7th. Finally, Robert W. Baird cut their target price on shares of Alibaba Group from $164.00 to $160.00 and set an "outperform" rating for the company in a research report on Friday, August 21st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $183.53.

Alibaba Group Stock Performance

Shares of Alibaba Group stock traded down $0.06 during trading hours on Friday, reaching $94.30. 11,681,096 shares of the stock traded hands, compared to its average volume of 10,312,458. The company has a 50 day moving average price of $106.86 and a 200 day moving average price of $123.22. The firm has a market capitalization of $234.59 billion, a price-to-earnings ratio of 22.83, a P/E/G ratio of 1.20 and a beta of 0.44. Alibaba Group Holding Limited has a one year low of $91.99 and a one year high of $181.10. 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 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 business had revenue of $39.64 billion during the quarter, compared to the consensus estimate of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. Alibaba Group's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter last year, the company earned $14.75 EPS. On average, equities research analysts expect that Alibaba Group Holding Limited will post 5.89 earnings per share for the current fiscal year.

Alibaba Group News Summary

These are some of the BABA news items that stood out recently:

• Positive Sentiment: DZ Bank upgraded Alibaba from “hold” to “buy” and set a $140 price target, signaling confidence in potential upside despite near-term headwinds.
• Negative Sentiment: The Nvidia controversy has intensified attention on Chinese companies’ ties to U.S. technology. Reports tracing financing links between Alibaba-related units and Megaspeed add to uncertainty around potential chip-access restrictions. Article: Alibaba-Megaspeed financing link traced via Singapore, Malaysia units amid Nvidia chip scrutiny
• Negative Sentiment: Analyst commentary also highlights short-term challenges and cash-flow pressures that may delay investors’ ability to realize Alibaba’s longer-term AI growth potential. Article: Alibaba’s AI Growth Prospects Remain Masked by Short-Term Challenges

Insider Buying and Selling at Alibaba Group

In other news, insider Fang Jiang sold 885,272 shares of Alibaba Group 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 transaction, the insider owned 4,679,097 shares in the company, valued at $63,401,764.35. This trade represents a 15.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Yongming Wu purchased 350,000 shares of the company's stock in a transaction dated Monday, August 24th. The shares were acquired at an average price of $14.24 per share, for a total transaction of $4,984,000.00. Following the purchase, the chief executive officer directly owned 1,364,418 shares in the company, valued at approximately $19,429,312.32. The trade was a 34.50% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 999,971 shares of company stock valued at $13,563,304 in the last quarter. Insiders own 12.50% of the company's stock.

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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