Headwater Capital Co Ltd Sells 104,000 Shares of Alibaba Group Holding Limited $BABA

Key Points

• Headwater Capital cut its Alibaba position by 86.7% in the fourth quarter, selling 104,000 shares and leaving it with 16,000 shares worth about $2.35 million.
• Alibaba has been in the news for several AI-focused initiatives, including new robot-related AI models, while reports also said investor Michael Burry boosted his stake and called Alibaba China’s most advanced AI company.
• The stock faces regulatory and geopolitical pressure, including a Pentagon blacklist designation and a rebuke from Chinese regulators over alleged misleading discount practices, even as analysts still rate it a Moderate Buy.

Headwater Capital Co Ltd trimmed its position in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 86.7% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 16,000 shares of the specialty retailer's stock after selling 104,000 shares during the quarter. Alibaba Group makes up approximately 0.3% of Headwater Capital Co Ltd's holdings, making the stock its 20th largest position. Headwater Capital Co Ltd's holdings in Alibaba Group were worth $2,345,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in BABA. Ameriflex Group Inc. boosted its position in shares of Alibaba Group by 101.4% in the 3rd quarter. Ameriflex Group Inc. now owns 143 shares of the specialty retailer's stock worth $26,000 after purchasing an additional 72 shares in the last quarter. Foster Dykema Cabot & Partners LLC bought a new stake in shares of Alibaba Group in the 3rd quarter worth approximately $30,000. Costello Asset Management INC purchased a new position in Alibaba Group in the 4th quarter worth approximately $34,000. Palisade Asset Management LLC purchased a new position in Alibaba Group in the 3rd quarter worth approximately $37,000. Finally, Palladiem LLC purchased a new position in Alibaba Group in the 4th quarter worth approximately $38,000. 13.47% of the stock is owned by institutional investors.

Key Headlines Impacting Alibaba Group

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

• Positive Sentiment: Alibaba unveiled a new suite of AI models built for robots, signaling it is moving beyond chatbots into “physical AI” and agents, which could open a new growth avenue in cloud and enterprise AI. Reuters: Alibaba unveils AI models for robots, amid shift from chatbots to agents
• Positive Sentiment: Reports that billionaire investor Michael Burry boosted his Alibaba stake added a confidence boost, with Burry reportedly calling Alibaba China’s “most advanced” AI company. Stocktwits article
• Positive Sentiment: Alibaba was also reported to be in talks to acquire Chinese grocery delivery company Pupu, which would expand its footprint in local commerce and grocery logistics. Retail Insight Network: Alibaba in talks to acquire Chinese grocery delivery company
• Neutral Sentiment: Several articles highlighted Alibaba’s push into robotics AI and SME support, reinforcing its strategic AI investment theme, but these announcements are more about long-term positioning than immediate financial impact. Yahoo Finance: Alibaba Unveils AI Models for Robots
• Negative Sentiment: Sentiment was hurt by news that the Pentagon blacklisted Alibaba over alleged ties to the Chinese military; although Alibaba denied the claims, the issue raises geopolitical and reputational risk for the stock. Yahoo Finance: Alibaba Group Holding Ltd (BABA): Looking Beyond Pentagon’s Black List
• Negative Sentiment: Chinese regulators publicly rebuked Alibaba and JD.com over alleged misleading discount practices during the 618 shopping festival, adding to regulatory overhang and pressure on consumer sentiment. Barchart: Beijing Rebukes Alibaba and JD.com Over Misleading Discount Practices

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Mizuho boosted their price objective on shares of Alibaba Group from $190.00 to $195.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. Jefferies Financial Group decreased their price objective on shares of Alibaba Group from $225.00 to $212.00 and set a "buy" rating for the company in a report on Thursday, March 19th. Erste Group Bank lowered shares of Alibaba Group from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. HSBC boosted their price objective on shares of Alibaba Group from $172.00 to $180.00 in a report on Thursday, May 14th. Finally, Argus upgraded shares of Alibaba Group to a "hold" rating in a research note on Tuesday, March 24th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Alibaba Group has a consensus rating of "Moderate Buy" and an average price target of $188.76.

Alibaba Group Trading Down 1.4%

NYSE:BABA opened at $110.99 on Wednesday. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28. The firm has a market capitalization of $266.28 billion, a price-to-earnings ratio of 18.22, a price-to-earnings-growth ratio of 1.93 and a beta of 0.48. Alibaba Group Holding Limited has a one year low of $103.71 and a one year high of $192.67. The business has a fifty day moving average price of $129.65 and a 200-day moving average price of $143.17.

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. The firm had revenue of $35.30 billion during the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%. Sell-side analysts forecast that Alibaba Group Holding Limited will post 6.75 EPS for the current year.

Alibaba Group Announces Dividend

The company also recently announced an annual dividend, which will be paid on Monday, July 13th. Investors 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 yield of 93.0%. Alibaba Group's dividend payout ratio is currently 16.91%.

About Alibaba Group

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.

Want to see what other hedge funds are holding BABA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Alibaba Group Holding Limited (NYSE:BABA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.