Morningstar Investment Management LLC Cuts Stock Holdings in Alibaba Group Holding Limited $BABA

Key Points

• Morningstar Investment Management cut its Alibaba stake by 37.6% in the fourth quarter, selling 11,061 shares and ending with 18,350 shares valued at about $2.69 million.
• Other institutional investors were much more bullish, with firms like Northwestern Mutual Wealth Management and Capital World Investors significantly increasing their positions. Hedge funds and other institutions now own 13.47% of Alibaba’s stock.
• Analysts remain generally positive on BABA, with recent target hikes from HSBC, Morgan Stanley, and Nomura helping keep the consensus at “Moderate Buy” and the average price target at $188.76.

Morningstar Investment Management LLC lessened its holdings in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 37.6% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 18,350 shares of the specialty retailer's stock after selling 11,061 shares during the quarter. Morningstar Investment Management LLC's holdings in Alibaba Group were worth $2,690,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of BABA. Northwestern Mutual Wealth Management Co. raised its position in shares of Alibaba Group by 7,680.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock worth $881,554,000 after acquiring an additional 5,936,847 shares in the last quarter. Capital World Investors raised its position in shares of Alibaba Group by 1,074.9% during the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer's stock worth $1,079,229,000 after acquiring an additional 5,524,354 shares in the last quarter. Artisan Partners Limited Partnership acquired a new stake in shares of Alibaba Group during the 3rd quarter worth about $290,208,000. Trivest Advisors Ltd acquired a new stake in shares of Alibaba Group during the 3rd quarter worth about $202,126,000. Finally, Coatue Management LLC raised its position in shares of Alibaba Group by 130.1% during the 3rd quarter. Coatue Management LLC now owns 1,996,593 shares of the specialty retailer's stock worth $356,851,000 after acquiring an additional 1,128,826 shares in the last quarter. Hedge funds and other institutional investors own 13.47% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on BABA shares. HSBC raised their target price on Alibaba Group from $172.00 to $180.00 in a research report on Thursday, May 14th. Morgan Stanley raised their target price on Alibaba Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. Weiss Ratings lowered Alibaba Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, February 27th. Nomura upped their price objective on shares of Alibaba Group from $200.00 to $207.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Finally, Jefferies Financial Group dropped their price objective on Alibaba Group from $225.00 to $212.00 and set a "buy" rating on the stock in a report on Thursday, March 19th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Alibaba Group currently has a consensus rating of "Moderate Buy" and a consensus price target of $188.76.

Trending Headlines about Alibaba Group

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 Trading Up 0.0%

NYSE:BABA opened at $130.02 on Monday. The stock's 50 day moving average price is $131.59 and its 200 day moving average price is $147.73. The company has a market capitalization of $311.91 billion, a PE ratio of 21.35, a P/E/G ratio of 2.26 and a beta of 0.50. The company has a quick ratio of 1.33, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. Alibaba Group Holding Limited has a 52-week low of $103.71 and a 52-week high of $192.67.

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

Alibaba Group Announces Dividend

The company also recently declared an annual dividend, which will be paid on Monday, July 13th. Investors of record on Thursday, June 11th will be paid 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 currently 15.60%.

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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