GMT Capital Corp Sells 135,400 Shares of Alibaba Group Holding Limited $BABA

Key Points

• GMT Capital Corp sharply reduced its Alibaba stake, selling 135,400 shares in the fourth quarter and cutting its position by 81.5% to 30,800 shares worth about $4.5 million.
• Investor and analyst sentiment remains mixed but generally constructive: several hedge funds added to or initiated positions, and analysts still rate Alibaba a “Moderate Buy” with an average price target of $188.76, above the current share price.
• Alibaba faces both growth initiatives and regulatory/legal overhangs, including a reported $1.5 billion bid for grocery delivery firm Pupu and a new dividend, while also dealing with Beijing scrutiny, securities-fraud investigations, and reports of a U.S. Defense Department list inclusion.

GMT Capital Corp lessened its stake in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 81.5% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 30,800 shares of the specialty retailer's stock after selling 135,400 shares during the period. Alibaba Group accounts for about 0.2% of GMT Capital Corp's portfolio, making the stock its 27th biggest position. GMT Capital Corp's holdings in Alibaba Group were worth $4,515,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently added to or reduced their stakes in the company. ARK Investment Management LLC bought a new position in Alibaba Group during the 3rd quarter worth $37,565,000. Great Hill Capital LLC bought a new position in Alibaba Group during the 3rd quarter worth $2,207,000. Jennison Associates LLC increased its stake in Alibaba Group by 11.9% during the 4th quarter. Jennison Associates LLC now owns 54,235 shares of the specialty retailer's stock worth $7,950,000 after acquiring an additional 5,760 shares during the period. Thornburg Investment Management Inc. increased its stake in Alibaba Group by 14.3% during the 3rd quarter. Thornburg Investment Management Inc. now owns 553,384 shares of the specialty retailer's stock worth $98,906,000 after acquiring an additional 69,232 shares during the period. Finally, Eurizon Capital SGR S.p.A. bought a new position in Alibaba Group during the 4th quarter worth $21,266,000. Institutional investors own 13.47% of the company's stock.

Alibaba Group News Summary

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

• Positive Sentiment: Alibaba reportedly offered about $1.5 billion to buy grocery delivery firm Pupu, a move that would expand its instant-retail and grocery push and sharpen its competition with Meituan. Alibaba Bids $1.5B for Pupu to Challenge Meituan in Grocery Delivery
• Positive Sentiment: Several recent analyst notes remain constructive, with price targets clustering well above the current trading range, suggesting some investors still see meaningful upside.
• Neutral Sentiment: Alibaba also named a new CEO for DingTalk after internal debate over AI strategy, signaling ongoing management changes but not an immediate financial impact. Alibaba Names 34-Year-Old Tech Geek as DingTalk’s New CEO
• Negative Sentiment: Beijing reportedly criticized discount-heavy promotions during the 618 shopping festival, adding fresh regulatory risk for Alibaba and other Chinese e-commerce leaders. Alibaba and JD Slide After Beijing Rebuke
• Negative Sentiment: Two securities-fraud law firms announced continuing investigations into Alibaba, which can further hurt sentiment by raising litigation and governance concerns. Securities Fraud Investigation Into Alibaba Group Holding Ltd. (BABA) Continues
• Negative Sentiment: The stock is also being weighed by reports that Alibaba was added to a U.S. Defense Department list of companies linked to China’s military, which could increase institutional caution toward the ADR. Is Alibaba Group Holding Limited (BABA) A Good Stock To Buy Now?

Analysts Set New Price Targets

Several equities analysts have recently issued reports on BABA shares. DZ Bank lowered Alibaba Group from a "buy" rating to a "hold" rating and set a $135.00 price target on the stock. in a research note on Friday, March 20th. Jefferies Financial Group decreased their price target on Alibaba Group from $225.00 to $212.00 and set a "buy" rating on the stock in a research note on Thursday, March 19th. Wall Street Zen upgraded Alibaba Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 23rd. Morgan Stanley lifted their price target on Alibaba Group from $180.00 to $190.00 and gave the company an "overweight" rating in a research note on Thursday, May 14th. Finally, Mizuho lifted their price target on Alibaba Group from $190.00 to $195.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Alibaba Group presently has a consensus rating of "Moderate Buy" and an average price target of $188.76.

Alibaba Group Trading Up 0.0%

NYSE BABA opened at $112.71 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. Alibaba Group Holding Limited has a twelve month low of $103.71 and a twelve month high of $192.67. The company has a market cap of $270.39 billion, a price-to-earnings ratio of 18.51, a price-to-earnings-growth ratio of 1.94 and a beta of 0.47. The business's fifty day moving average is $130.07 and its 200 day moving average is $143.93.

Alibaba Group (NYSE:BABA - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.The company had revenue of $35.30 billion for the quarter. As a group, sell-side analysts expect that Alibaba Group Holding Limited will post 6.75 EPS for the current fiscal year.

Alibaba Group Announces Dividend

The company also recently disclosed 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. The ex-dividend date of this dividend is Thursday, June 11th. This represents a dividend yield of 93.0%. Alibaba Group's dividend payout ratio (DPR) is 16.91%.

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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