Profund Advisors LLC Cuts Holdings in Alibaba Group Holding Limited $BABA

Key Points

• Profund Advisors LLC cut its Alibaba stake by 22.6% in the fourth quarter, selling 24,256 shares and leaving it with 82,926 shares valued at about $12.2 million.
• Despite that sale, other major institutions have been adding to their positions, with firms like Capital World Investors and Northwestern Mutual Wealth Management Co. reporting very large increases in their Alibaba holdings.
• Recent coverage remains broadly positive on Alibaba’s AI and cloud growth, though the company is also spending heavily on those areas, which is pressuring margins in the near term.

Profund Advisors LLC lowered its stake in shares of Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 22.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 82,926 shares of the specialty retailer's stock after selling 24,256 shares during the period. Profund Advisors LLC's holdings in Alibaba Group were worth $12,155,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Capital World Investors lifted its stake 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 purchasing an additional 5,524,354 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Alibaba Group by 7,680.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock valued at $881,554,000 after purchasing an additional 5,936,847 shares during the last quarter. Fisher Asset Management LLC raised its holdings in Alibaba Group by 0.5% in the third quarter. Fisher Asset Management LLC now owns 5,293,597 shares of the specialty retailer's stock worth $946,125,000 after purchasing an additional 26,156 shares in the last quarter. American Century Companies Inc. lifted its position in shares of Alibaba Group by 17.7% during the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer's stock valued at $533,964,000 after buying an additional 448,484 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of Alibaba Group by 8.9% during the third quarter. Dimensional Fund Advisors LP now owns 2,028,659 shares of the specialty retailer's stock valued at $362,582,000 after buying an additional 166,134 shares during the last quarter. Institutional investors own 13.47% of the company's stock.

Alibaba Group News Roundup

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

• Positive Sentiment: Alibaba is being re-rated as an AI growth story, with reports highlighting accelerating Cloud Intelligence growth and triple-digit AI revenue gains for multiple quarters, which could support a higher valuation over time. Alibaba: Now An AI Growth Stock
• Positive Sentiment: Several articles argue Alibaba may be entering a “new era” as it prioritizes AI and cloud expansion over short-term profitability, reinforcing the view that management is making strategic investments for future growth. Prediction: Alibaba Stock May Be Entering a New Era
• Positive Sentiment: Investor interest remains strong, with Zacks noting that Alibaba is trending among users as they weigh the stock’s prospects and AI-driven upside potential. Is Trending Stock Alibaba Group Holding Limited (BABA) a Buy Now?
• Neutral Sentiment: Alibaba’s latest quarterly update showed strong cloud and AI progress, but also confirmed that spending on AI and cloud infrastructure is squeezing margins in the near term. Alibaba Group Holding (BABA) Is Down 5.3% After Heavy AI And Cloud Spending Squeezes Margins
• Neutral Sentiment: Alibaba also filed a Form 13F and highlighted its WVR structure, a governance update that is unlikely to move the stock materially on its own. Alibaba Files Form 13F as Investment Manager, Highlights WVR Structure

Alibaba Group Stock Performance

BABA opened at $133.30 on Tuesday. The company has a market cap of $319.78 billion, a P/E ratio of 21.89, a price-to-earnings-growth ratio of 2.30 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. The firm's 50-day moving average price is $131.70 and its 200-day moving average price is $148.86. 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 earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The company had revenue of $35.30 billion during the quarter. As a group, equities analysts anticipate that Alibaba Group Holding Limited will post 6.67 EPS for the current fiscal year.

Alibaba Group Dividend Announcement

The company also recently declared an annual dividend, which will be paid on Monday, July 13th. Shareholders of record on Thursday, June 11th will be given a dividend of $1.05 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a yield of 72.0%. Alibaba Group's payout ratio is currently 15.60%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on BABA. Mizuho lifted their price objective on shares of Alibaba Group from $190.00 to $195.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. Argus raised shares of Alibaba Group to a "hold" rating in a research report on Tuesday, March 24th. Susquehanna raised their target price on shares of Alibaba Group from $170.00 to $185.00 and gave the company a "positive" rating in a research note on Friday. Freedom Capital raised shares of Alibaba Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 24th. Finally, Barclays upped their price target on Alibaba Group from $186.00 to $195.00 and gave the stock an "overweight" rating in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Alibaba Group currently has an average rating of "Moderate Buy" and an average target price of $188.76.

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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