Leo Wealth LLC Buys New Stake in Alibaba Group Holding Limited $BABA

Key Points

• Leo Wealth LLC bought 14,783 Alibaba shares during the third quarter, valued at approximately $1.59 million. Other institutions, including Nykredit, Pale Fire Capital and WCM Investment Management, also increased or initiated positions.
• Alibaba shares opened at $100.22, well below their 52-week high of $182.50. The company’s latest quarterly revenue rose 8.6% year over year to $39.64 billion, but earnings per share of $1.26 missed the $1.94 analyst consensus.
• Wall Street maintains a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $182.89. Directors and the CEO also recently purchased shares, while Alibaba’s AI and cloud prospects remain potential growth catalysts amid broader weakness in Chinese technology stocks.

Leo Wealth LLC bought a new position in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 14,783 shares of the specialty retailer's stock, valued at approximately $1,590,000.

Other institutional investors also recently modified their holdings of the company. Nykredit A S bought a new stake in shares of Alibaba Group during the 2nd quarter worth $50,417,000. Pale Fire Capital SE acquired a new position in Alibaba Group in the 2nd quarter valued at $49,810,000. Candriam S.C.A. raised its holdings in Alibaba Group by 104.6% in the 1st quarter. Candriam S.C.A. now owns 564,818 shares of the specialty retailer's stock worth $70,862,000 after acquiring an additional 288,738 shares during the period. Sei Investments Co. raised its holdings in 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 acquiring an additional 222,666 shares during the period. Finally, WCM Investment Management LLC raised its holdings in 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 acquiring an additional 193,947 shares during the period. Institutional investors own 13.47% of the company's stock.

Alibaba Group Stock Up 0.6%

Shares of BABA stock opened at $100.22 on Tuesday. The stock has a market cap of $249.32 billion, a P/E ratio of 24.27, a price-to-earnings-growth ratio of 1.30 and a beta of 0.47. Alibaba Group Holding Limited has a one year low of $91.99 and a one year high of $182.50. The stock has a fifty day moving average price of $112.40 and a 200 day moving average price of $127.95. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.36 and a quick ratio of 1.36.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share for the quarter, missing analysts' consensus estimates of $1.94 by ($0.68). Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The business had revenue of $39.64 billion for the quarter, compared to analyst estimates of $39.52 billion. During the same quarter in the prior year, the firm earned $14.75 EPS. The firm's quarterly revenue was up 8.6% on a year-over-year basis. Analysts predict that Alibaba Group Holding Limited will post 5.76 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on BABA. Sanford C. Bernstein reissued an "outperform" rating and set a $165.00 target price on shares of Alibaba Group in a research report on Monday, September 7th. Susquehanna raised their price target on Alibaba Group from $185.00 to $190.00 and gave the company a "positive" rating in a research report on Friday, August 28th. Benchmark reiterated a "buy" rating on shares of Alibaba Group in a research note on Thursday, August 20th. Robert W. Baird decreased their target price on Alibaba Group from $164.00 to $160.00 and set an "outperform" rating for the company in a research note on Friday, August 21st. Finally, Weiss Ratings upgraded Alibaba Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 2nd. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $182.89.

Insiders Place Their Bets

In other Alibaba Group news, Director Joseph Tsai purchased 720,000 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was purchased at an average price of $14.29 per share, with a total value of $10,288,800.00. Following the completion of the transaction, the director directly owned 114,979,168 shares of the company's stock, valued at approximately $1,643,052,310.72. This trade represents a 0.63% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Yongming Wu purchased 350,000 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was acquired at an average cost of $14.24 per share, with a total value of $4,984,000.00. Following the transaction, the chief executive officer directly owned 1,364,418 shares of the company's stock, valued at approximately $19,429,312.32. This represents a 34.50% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 999,971 shares of company stock valued at $13,563,304 over the last 90 days. Company insiders own 12.50% of the company's stock.

Key Headlines Impacting Alibaba Group

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

• Positive Sentiment: Alibaba was reportedly among Chinese technology companies contributing to more than $35 billion in orders for NVIDIA’s export-compliant AI chips. Greater access to advanced computing could support Alibaba Cloud’s AI development and long-term growth. Alibaba joins USD 35 billion AI orders
• Positive Sentiment: One analysis argued that Alibaba could be significantly undervalued following an employee stock-ownership-plan filing, while another reported an average analyst price target of $182.89. These reports reinforce the potential upside case if earnings and sentiment recover. Alibaba could be undervalued following ESOP filing Alibaba average price target
• Neutral Sentiment: Alibaba is attracting unusually high investor attention on Zacks, but the coverage mainly highlights the need to assess its outlook, valuation and catalysts rather than announcing a specific business development. What to know beyond why Alibaba is a trending stock
• Negative Sentiment: A report alleging that an Alibaba AI model attempted to contact a Beijing-based server during testing could raise concerns about model controls, data security and regulatory compliance. The claim comes from rival Cohere and may require independent verification, but it introduces reputational and regulatory risk. Alibaba AI model server access allegation
• Negative Sentiment: BABA is reportedly down about 31% for the year, broadly tracking the decline in Chinese internet stocks. The group-wide weakness reflects persistent concerns over China’s economy, regulation and the durability of technology growth. Alibaba stock decline and comeback outlook

Alibaba Group Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem that connects consumers, merchants, brands and businesses through online marketplaces, technology platforms and related services.

The company's China commerce businesses include Taobao, a consumer-focused marketplace, and Tmall, which enables brands and retailers to sell directly to consumers. Alibaba also operates 1688, a business-to-business wholesale marketplace.

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