Carrhae Capital LLP Sells 189,595 Shares of Alibaba Group Holding Limited $BABA

Key Points

• Carrhae Capital LLP reduced its Alibaba stake by 38.1% in the fourth quarter, selling 189,595 shares and leaving it with 308,639 shares valued at about $45.24 million.
• Wall Street sentiment on Alibaba remains mostly constructive, with a consensus rating of “Moderate Buy” and an average price target of $188.76, though some firms recently cut ratings or targets.
• Investor focus is centered on Alibaba’s AI expansion, including new models and custom chips, but the stock also faces ongoing regulatory and U.S.-China policy risks that could pressure sentiment and valuation.

Carrhae Capital LLP cut its holdings in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 38.1% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 308,639 shares of the specialty retailer's stock after selling 189,595 shares during the quarter. Alibaba Group accounts for 1.7% of Carrhae Capital LLP's investment portfolio, making the stock its 17th largest holding. Carrhae Capital LLP's holdings in Alibaba Group were worth $45,240,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of BABA. Ameriflex Group Inc. boosted its stake in Alibaba Group by 101.4% during the third quarter. Ameriflex Group Inc. now owns 143 shares of the specialty retailer's stock worth $26,000 after acquiring an additional 72 shares in the last quarter. Foster Dykema Cabot & Partners LLC bought a new stake in Alibaba Group in the third quarter valued at $30,000. Costello Asset Management INC bought a new stake in Alibaba Group in the fourth quarter valued at $34,000. Palisade Asset Management LLC acquired a new position in shares of Alibaba Group during the third quarter valued at about $37,000. Finally, GAMMA Investing LLC boosted its position in shares of Alibaba Group by 107.7% during the 4th quarter. GAMMA Investing LLC now owns 324 shares of the specialty retailer's stock worth $47,000 after purchasing an additional 168 shares in the last quarter. Institutional investors and hedge funds own 13.47% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on BABA shares. Weiss Ratings downgraded Alibaba Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, February 27th. Robert W. Baird cut their price target on Alibaba Group from $174.00 to $164.00 and set an "outperform" rating on the stock in a report on Friday, March 20th. Zacks Research cut Alibaba Group from a "hold" rating to a "strong sell" rating in a research note on Wednesday, April 22nd. Jefferies Financial Group decreased their price objective on Alibaba Group from $225.00 to $212.00 and set a "buy" rating for the company in a report on Thursday, March 19th. Finally, Nomura upped their target price on Alibaba Group from $200.00 to $207.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $188.76.

Alibaba Group News Summary

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

• Positive Sentiment: Alibaba unveiled new AI products, including the Qwen 3.7-Max model and the Zhenwu M890 chip, signaling deeper investment in domestic AI infrastructure and a push to become a leading “AI factory” in China. Alibaba unveils new Qwen model, custom chips in bid to become China’s ‘AI factory’
• Positive Sentiment: Multiple reports highlighted Alibaba’s stronger AI positioning and the potential for monetization, with some coverage framing the company’s AI progress as a shift from investment mode toward commercialization. Alibaba signals next phase of AI growth from investment to commercialisation
• Positive Sentiment: Analysts remained constructive, with Susquehanna reportedly raising its price target on BABA to $185 and other firms maintaining bullish ratings, reinforcing confidence in the stock’s longer-term AI and cloud opportunity. Alibaba (BABA) Price Target Raised to $185 by Susquehanna
• Neutral Sentiment: Coverage also noted that AI leaders in China and the U.S. continue to attract heavy investor attention, which may be supporting sentiment around Alibaba’s AI strategy more broadly. DeepSeek Founder Avows AGI Goal Ahead of $10 Billion Funding
• Negative Sentiment: Alibaba and other U.S.-listed Chinese stocks were hit by news of a China cross-border crackdown on online brokerages, reminding investors that Beijing’s regulatory risk remains elevated for Chinese ADRs. Alibaba, U.S.-Listed Chinese Stocks Fall On Cross-Border Crackdown; Futu Crashes
• Negative Sentiment: Broader U.S.-China financial friction also weighed on sentiment, with investors reminded that policy and regulatory tensions could continue to pressure valuation multiples for Alibaba. U.S.-China Financial Rivalry Flares Up. The Summit Smiles Are Fading.
• Negative Sentiment: Some traders also focused on the near-term earnings and margin tradeoff, with Alibaba’s heavier AI and cloud spending plans seen as a potential drag on profitability and free cash flow in the short run. Alibaba slides as investors digest profit squeeze and stepped-up AI spending plans

Alibaba Group Stock Down 1.1%

BABA opened at $130.02 on Friday. Alibaba Group Holding Limited has a fifty-two week low of $103.71 and a fifty-two week high of $192.67. The firm has a market capitalization of $311.91 billion, a P/E ratio of 21.35, a PEG ratio of 2.28 and a beta of 0.50. The company's 50-day moving average is $131.59 and its 200 day moving average is $147.87. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.33.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The firm had revenue of $35.30 billion during the quarter. Research analysts expect that Alibaba Group Holding Limited will post 6.67 earnings per share for the current fiscal year.

Alibaba Group Announces Dividend

The firm also recently declared an annual dividend, which will be paid on Monday, July 13th. Investors of record on Thursday, June 11th will be issued a dividend of $1.05 per share. This represents a yield of 72.0%. The ex-dividend date is Thursday, June 11th. Alibaba Group's dividend payout ratio (DPR) is 15.60%.

Alibaba Group Company 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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