Alibaba Group Holding Limited $BABA Stock: UG Investment Advisers Ltd. Reduces Position

Key Points

• UG Investment Advisers cut its Alibaba stake by 40.8% in the third quarter, selling 86,896 shares and retaining 125,919 shares valued at about $13.5 million. Alibaba still represented roughly 15% of the firm’s portfolio.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $183.53; recent ratings ranged from Buy/Outperform to Hold.
• Alibaba shares were reported down 6.9%, while its latest quarterly EPS of $1.26 missed estimates of $1.94; revenue of $39.64 billion slightly beat expectations and rose 8.6% year over year.

UG Investment Advisers Ltd. lowered its position in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 40.8% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 125,919 shares of the specialty retailer's stock after selling 86,896 shares during the period. Alibaba Group comprises about 15.0% of UG Investment Advisers Ltd.'s investment portfolio, making the stock its 2nd biggest holding. UG Investment Advisers Ltd.'s holdings in Alibaba Group were worth $13,541,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of the company. Nykredit A S purchased a new position in Alibaba Group in the second quarter worth about $50,417,000. Pale Fire Capital SE purchased a new stake in shares of Alibaba Group during the 2nd quarter valued at about $49,810,000. Sei Investments Co. lifted its stake in shares of Alibaba Group by 63.5% in the 1st quarter. Sei Investments Co. now owns 573,409 shares of the specialty retailer's stock worth $71,940,000 after purchasing an additional 222,666 shares during the period. WCM Investment Management LLC lifted its stake in shares of Alibaba Group by 347.6% in the 1st quarter. WCM Investment Management LLC now owns 249,736 shares of the specialty retailer's stock worth $30,463,000 after purchasing an additional 193,947 shares during the period. Finally, TT International Asset Management LTD lifted its stake in shares of Alibaba Group by 2,775.0% in the 3rd quarter. TT International Asset Management LTD now owns 185,036 shares of the specialty retailer's stock worth $19,899,000 after purchasing an additional 178,600 shares during the period. Institutional investors own 13.47% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on BABA shares. Jefferies Financial Group restated a "buy" rating and set a $192.00 target price on shares of Alibaba Group in a research report on Thursday, October 8th. Robert W. Baird dropped their price target on shares of Alibaba Group from $164.00 to $160.00 and set an "outperform" rating on the stock in a research note on Friday, August 21st. JPMorgan Chase & Co. dropped their price target on shares of Alibaba Group from $210.00 to $200.00 and set an "overweight" rating on the stock in a research note on Monday, October 12th. Sanford C. Bernstein reissued an "outperform" rating and set a $165.00 price objective on shares of Alibaba Group in a research report on Monday, September 7th. Finally, Piper Sandler lowered Alibaba Group to a "hold" rating in a research note on Thursday, October 8th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Alibaba Group has an average rating of "Moderate Buy" and a consensus target price of $183.53.

Alibaba Group Stock Down 6.9%

BABA stock opened at $94.47 on Friday. The business's 50-day moving average price is $107.21 and its 200-day moving average price is $123.61. The stock has a market cap of $235.03 billion, a P/E ratio of 22.87, a PEG ratio of 1.29 and a beta of 0.44. 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 Holding Limited has a twelve month low of $91.99 and a twelve month high of $181.10.

Alibaba Group (NYSE:BABA - Get Free Report) last released its earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.68). The firm had revenue of $39.64 billion during the quarter, compared to analysts' expectations of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The company's revenue was up 8.6% compared to the same quarter last year. During the same period in the prior year, the company posted $14.75 earnings per share. On average, equities research analysts forecast that Alibaba Group Holding Limited will post 5.89 EPS for the current year.

Recent Alibaba Group Headlines

Investors following BABA have been watching these headlines:

• Positive Sentiment: DZ Bank upgraded Alibaba from “hold” to “buy” and set a $140 price target, signaling substantial potential upside from the reference price. DZ Bank rating
• 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

Insider Activity at Alibaba Group

In related news, General Counsel Siying Yu sold 6,764 shares of the company's stock in a transaction on Friday, September 25th. The shares were sold at an average price of $13.58, for a total value of $91,855.12. Following the completion of the transaction, the general counsel owned 613,965 shares of the company's stock, valued at approximately $8,337,644.70. This represents a 1.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Joseph C. Tsai purchased 720,000 shares of the business's stock in a transaction on Monday, August 24th. The stock was acquired at an average price of $14.29 per share, with a total value of $10,288,800.00. Following the purchase, the director directly owned 114,979,168 shares in the company, valued at $1,643,052,310.72. This represents a 0.63% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold 999,971 shares of company stock worth $13,563,304 in the last 90 days. Company insiders own 12.50% of the company's stock.

About Alibaba Group

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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