Liontrust Investment Partners LLP Sells 160,687 Shares of Alibaba Group Holding Limited $BABA

Key Points

• Liontrust Investment Partners LLP cut its Alibaba stake by 77.5% in the first quarter, selling 160,687 shares and retaining 46,744 shares valued at approximately $5.9 million.
• Institutional investors showed mixed activity, while analysts remained broadly positive: Alibaba has a “Moderate Buy” consensus rating and an average price target of $186.90.
• Insider selling and cash-flow concerns remain risks: company insiders sold 920,303 shares worth about $70.8 million over the past 90 days, while heavy spending on AI, cloud and quick-commerce initiatives has pressured cash generation.

Liontrust Investment Partners LLP trimmed its position in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 77.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 46,744 shares of the specialty retailer's stock after selling 160,687 shares during the quarter. Liontrust Investment Partners LLP's holdings in Alibaba Group were worth $5,865,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. TrueWealth Financial Partners acquired a new stake in shares of Alibaba Group during the 1st quarter worth approximately $595,000. Orographic Financial Advisors LLC acquired a new position in Alibaba Group in the first quarter valued at approximately $265,000. Genesis Financial Group LLC lifted its holdings in Alibaba Group by 33.3% in the first quarter. Genesis Financial Group LLC now owns 14,735 shares of the specialty retailer's stock valued at $1,849,000 after buying an additional 3,680 shares during the period. Centaurus Financial Inc. boosted its stake in Alibaba Group by 115.8% in the first quarter. Centaurus Financial Inc. now owns 10,599 shares of the specialty retailer's stock valued at $1,330,000 after acquiring an additional 5,688 shares during the last quarter. Finally, Arkadios Wealth Advisors boosted its stake in Alibaba Group by 14.5% in the first quarter. Arkadios Wealth Advisors now owns 29,753 shares of the specialty retailer's stock valued at $3,733,000 after acquiring an additional 3,763 shares during the last quarter. 13.47% of the stock is owned by institutional investors.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Wall Street analysts maintain an average Buy recommendation for Alibaba. While the consensus may be overly optimistic, the rating provides a supportive backdrop and suggests analysts see upside from current levels. Is Alibaba a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: A valuation analysis estimated that Alibaba could be approximately 41% undervalued based on discounted cash flow assumptions. The analysis suggests the market may already be pricing in substantial pessimism, including potential European Union regulatory fines. Alibaba Stock May Be 41% Undervalued
• Positive Sentiment: Jack Ma-backed OceanBase is reportedly seeking as much as $443 million to fund expansion in AI database services. Additional capital could help the Alibaba-linked business operate more independently and strengthen Alibaba’s broader AI and cloud ecosystem. Jack Ma-Backed OceanBase Seeks Funding for AI Push
• Neutral Sentiment: Alibaba advanced but continued to trail the broader market during the latest session, indicating that positive trading momentum has not yet translated into a clear change in its relative performance. Alibaba Ascends but Remains Behind Market
• Negative Sentiment: Analysts have highlighted weakening cash flow as a risk, with heavy spending on AI, cloud computing and quick-commerce investments outpacing cash generation despite improving cloud revenue. This could constrain returns and weigh on long-term growth if investment does not produce stronger profits. Will Alibaba’s Cash Flow Weakness Hurt Growth?
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Alibaba investors. Although no findings or liability were established, the investigation adds legal and headline risk to the shares. Pomerantz Investor Alert

Wall Street Analysts Forecast Growth

A number of research firms have commented on BABA. Mizuho lifted their target price 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. Nomura reduced their price target on Alibaba Group from $207.00 to $178.00 and set a "buy" rating on the stock in a research report on Thursday, June 25th. BNP Paribas Exane started coverage on Alibaba Group in a research report on Wednesday, April 29th. They issued an "outperform" rating and a $209.00 price target on the stock. Freedom Capital raised Alibaba Group from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 24th. Finally, HSBC set a $170.00 price objective on Alibaba Group in a report on Thursday, July 9th. 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, the stock has an average rating of "Moderate Buy" and an average target price of $186.90.

Insider Activity

In other Alibaba Group news, CEO Fan (Fj) Jiang sold 13,579 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $12.10, for a total transaction of $164,305.90. Following the transaction, the chief executive officer owned 556,617 shares of the company's stock, valued at $6,735,065.70. The trade was a 2.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President J. Michael Evans sold 720,000 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $94.95, for a total transaction of $68,364,000.00. Following the sale, the president directly owned 28,000 shares in the company, valued at $2,658,600. This trade represents a 96.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 920,303 shares of company stock valued at $70,796,370. Corporate insiders own 12.50% of the company's stock.

Alibaba Group Stock Up 1.0%

NYSE:BABA opened at $116.19 on Friday. The stock has a 50-day simple moving average of $112.99 and a 200 day simple moving average of $132.92. Alibaba Group Holding Limited has a 52-week low of $91.99 and a 52-week high of $192.67. The company has a market cap of $278.50 billion, a PE ratio of 19.08, a PEG ratio of 2.12 and a beta of 0.51. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.28 and a current ratio of 1.28.

Alibaba Group (NYSE:BABA - Get Free Report) last released its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.The firm had revenue of $35.30 billion for the quarter. On average, sell-side analysts expect that Alibaba Group Holding Limited will post 6.28 EPS for the current fiscal year.

Alibaba Group Dividend Announcement

The firm also recently declared an annual dividend, which was paid on Monday, July 13th. Shareholders of record on Thursday, June 11th were given a dividend of $1.05 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a yield of 93.0%. Alibaba Group's payout ratio is 16.91%.

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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