Bailard Inc. Trims Stake in Alibaba Group Holding Limited $BABA

Key Points

• Bailard Inc. cut its Alibaba stake by 45.8% in the fourth quarter, leaving it with 5,023 shares valued at about $736,000.
• Institutional interest remains mixed: while some funds reduced exposure, others made large new or expanded bets, and hedge funds/institutions still own 13.47% of Alibaba’s stock.
• Analysts are increasingly optimistic about Alibaba’s AI and cloud turnaround, with several firms raising price targets even as recent earnings showed profitability pressure from heavy investment spending.

Bailard Inc. decreased its position in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 45.8% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 5,023 shares of the specialty retailer's stock after selling 4,242 shares during the period. Bailard Inc.'s holdings in Alibaba Group were worth $736,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Capital World Investors increased its position in 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 buying an additional 5,524,354 shares in the last quarter. Artisan Partners Limited Partnership bought a new position in Alibaba Group during the 3rd quarter valued at approximately $290,208,000. Trivest Advisors Ltd bought a new position in Alibaba Group during the 3rd quarter valued at approximately $202,126,000. Coatue Management LLC increased its position in Alibaba Group by 130.1% during the 3rd quarter. Coatue Management LLC now owns 1,996,593 shares of the specialty retailer's stock valued at $356,851,000 after buying an additional 1,128,826 shares in the last quarter. Finally, Altimeter Capital Management LP bought a new position in Alibaba Group during the 3rd quarter valued at approximately $173,207,000. Hedge funds and other institutional investors own 13.47% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on BABA. Weiss Ratings lowered Alibaba Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, February 27th. Zacks Research lowered Alibaba Group from a "hold" rating to a "strong sell" rating in a research report on Wednesday, April 22nd. HSBC raised their price objective on Alibaba Group from $172.00 to $180.00 in a research report on Thursday. JPMorgan Chase & Co. raised their price objective on Alibaba Group from $200.00 to $205.00 and gave the company an "overweight" rating in a research report on Thursday. Finally, Barclays raised their price objective on Alibaba Group from $186.00 to $195.00 and gave the company an "overweight" rating in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $189.00.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Wall Street raised confidence in Alibaba’s AI/cloud turnaround, with HSBC, JPMorgan, Barclays, and Mizuho all lifting targets and reiterating bullish ratings. MarketScreener Latest Ratings
• Positive Sentiment: Alibaba’s cloud business grew 38% year over year, reinforcing the view that AI and cloud are becoming the company’s main growth engines. Alibaba quarterly revenue rises 3%, missing estimates
• Positive Sentiment: Management said AI spending may rise above prior plans, suggesting Alibaba is leaning harder into its long-term AI strategy and may be building a stronger competitive position. AI Is Becoming Alibaba's New Money Machine: Analyst
• Neutral Sentiment: Investors are also watching China-related headlines, including reports that the U.S. approved Nvidia H200 sales to Chinese firms such as Alibaba, which could matter for the broader AI ecosystem but is not a direct earnings driver yet. Nvidia Stock Extends Winning Streak On China News
• Negative Sentiment: Alibaba’s quarterly results still showed pressure on profitability, with earnings missing estimates as heavy AI and commerce investment weighed on margins and core profit. Alibaba's core profit plunges 84% even as AI and cloud growth accelerate
• Negative Sentiment: The revenue beat/ miss mix was not clean: overall revenue growth was modest, and investors remain concerned that AI spending could take time to translate into stronger near-term profits. Alibaba's Quarterly Profitability Still Under Pressure

Alibaba Group Stock Down 3.2%

Alibaba Group stock opened at $141.08 on Friday. The firm has a market cap of $338.45 billion, a price-to-earnings ratio of 23.17, a PEG ratio of 2.52 and a beta of 0.50. The stock has a fifty day simple moving average of $131.65 and a two-hundred day simple moving average of $149.49. Alibaba Group Holding Limited has a 12 month low of $103.71 and a 12 month high of $192.67. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.22.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. The business had revenue of $35.30 billion during the quarter. Alibaba Group had a return on equity of 4.82% and a net margin of 10.31%. Equities analysts predict that Alibaba Group Holding Limited will post 6.7 EPS for the current fiscal year.

Alibaba Group Announces Dividend

The firm also recently announced an annual dividend, which will be paid on Monday, July 13th. Shareholders of record on Thursday, June 11th will be issued a $1.05 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a dividend yield of 72.0%. Alibaba Group's dividend payout ratio (DPR) is presently 17.92%.

Alibaba Group Profile

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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