Alibaba Group Holding Limited $BABA Stake Increased by Gradient Investments LLC

Key Points

• Gradient Investments increased its Alibaba stake by 17.2% in the third quarter, bringing its holdings to 44,649 shares valued at approximately $4.8 million. Institutional investors collectively own 13.47% of the company.
• Alibaba insiders sold nearly 1 million shares worth $13.6 million over the past 90 days, including substantial sales by insider Fang Jiang and CFO Hong Xu. Hong Xu’s sale was made to cover tax withholding obligations tied to vested equity awards.
• Analysts maintain a generally positive outlook, with Alibaba receiving a “Moderate Buy” consensus rating and an average price target of $183.44. However, near-term concerns include a recent EPS miss, margin pressure, heavy AI and cloud spending, and a 16.2% six-month stock decline.

Gradient Investments LLC increased its holdings in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 17.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 44,649 shares of the specialty retailer's stock after acquiring an additional 6,562 shares during the period. Gradient Investments LLC's holdings in Alibaba Group were worth $4,802,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of BABA. Altshuler Shaham Ltd purchased a new stake in shares of Alibaba Group during the 4th quarter worth $160,410,000. Bbfit Investments PTE Ltd. purchased a new position in shares of Alibaba Group in the 4th quarter valued at about $106,828,000. Nykredit A S purchased a new position in shares of Alibaba Group in the 2nd quarter valued at about $50,417,000. Pale Fire Capital SE acquired a new stake in shares of Alibaba Group in the second quarter valued at about $49,810,000. Finally, Candriam S.C.A. lifted its stake in shares of Alibaba Group by 104.6% in the first quarter. Candriam S.C.A. now owns 564,818 shares of the specialty retailer's stock valued at $70,862,000 after purchasing an additional 288,738 shares during the period. Hedge funds and other institutional investors own 13.47% of the company's stock.

Insider Buying and Selling

In related news, insider Fang Jiang sold 885,272 shares of Alibaba Group stock in a transaction dated Wednesday, September 30th. The stock was sold at an average price of $13.55, for a total transaction of $11,995,435.60. Following the completion of the sale, the insider owned 4,679,097 shares in the company, valued at approximately $63,401,764.35. This trade represents a 15.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Hong Xu sold 103,046 shares of Alibaba Group stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $13.68, for a total value of $1,409,669.28. Following the sale, the chief financial officer owned 406,450 shares of the company's stock, valued at approximately $5,560,236. This represents a 20.23% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 999,971 shares of company stock valued at $13,563,304. Company insiders own 12.50% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have 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 research report on Thursday. Barclays boosted their price target on Alibaba Group from $195.00 to $200.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. Nomura lowered their price target on Alibaba Group from $207.00 to $178.00 and set a "buy" rating on the stock in a report on Thursday, June 25th. HSBC set a $170.00 price objective on Alibaba Group in a report on Thursday, July 9th. Finally, Sanford C. Bernstein reissued an "outperform" rating and issued a $165.00 target price on shares of Alibaba Group in a report on Monday, September 7th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $183.44.

More Alibaba Group News

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

• Positive Sentiment: Cloud and AI growth outlook remains a key bullish catalyst. Jefferies maintained its “Buy” rating and expects Alibaba Cloud revenue growth to accelerate in the December and March quarters, potentially exceeding 50% in fiscal 2028. The firm also cited execution across AI Cloud and Compute services, AI applications and e-commerce. Alibaba cloud revenue growth seen above 50% in financial year 2028, Jefferies maintains buy rating
• Positive Sentiment: Analysts continue to view Alibaba’s AI strategy as a long-term support. Coverage highlighted the company’s full-stack AI efforts, expanding AI cloud business and resilient commerce operations as reasons to hold the stock despite recent weakness. Alibaba plunges 16.2% in six months: three key reasons to hold the stock
• Neutral Sentiment: Chairman Joe Tsai advocated open-source AI development in Europe and greater use of industrial data, reinforcing Alibaba’s technology profile but offering limited immediate financial impact. Alibaba chairman Joe Tsai urges Europe to build its own open-source AI
• Neutral Sentiment: Alibaba was reportedly in early discussions regarding power supply for a data center in Spain. The potential infrastructure expansion could support cloud capacity, although no firm investment or financial commitment was announced. Alibaba in early talks on Spain data center power supply
• Negative Sentiment: Near-term sentiment remains weak. A market update reported that BABA underperformed the broader market during the latest session. Separate analysis noted that the stock had declined 16.2% over six months, reflecting investor concern about heavy AI and cloud capital expenditures, margin pressure and uneven profitability. Alibaba’s latest reported quarter also included an EPS miss despite revenue slightly exceeding estimates.

Alibaba Group Trading Down 1.1%

Shares of BABA opened at $105.85 on Friday. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.36 and a quick ratio of 1.36. Alibaba Group Holding Limited has a 1-year low of $91.99 and a 1-year high of $182.50. The stock has a market cap of $263.09 billion, a price-to-earnings ratio of 25.63, a price-to-earnings-growth ratio of 1.43 and a beta of 0.47. The firm has a 50 day simple moving average of $116.32 and a 200-day simple moving average of $119.65.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.94 by ($0.68). The company had revenue of $39.64 billion during the quarter, compared to analysts' expectations of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. Alibaba Group's quarterly revenue was up 8.6% compared to the same quarter last year. During the same period in the previous year, the company posted $14.75 EPS. Equities analysts forecast that Alibaba Group Holding Limited will post 5.8 EPS for the current fiscal year.

Alibaba Group Company Profile

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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