Pzena Investment Management LLC Sells 15,933 Shares of Alibaba Group Holding Limited $BABA

Key Points

• Pzena Investment Management reduced its Alibaba stake by 38.5% in Q4, selling 15,933 shares and leaving it with 25,437 shares valued at about $3.73 million.
• Wall Street sentiment remains mostly positive: Alibaba has an average “Moderate Buy” rating, with an average price target of $188.76 despite one recent downgrade.
• Alibaba is leaning harder into AI, unveiling new models and custom chips, but investors are also watching regulatory risks and short-term margin pressure from higher spending.

Pzena Investment Management LLC lessened its position in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 38.5% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 25,437 shares of the specialty retailer's stock after selling 15,933 shares during the period. Pzena Investment Management LLC's holdings in Alibaba Group were worth $3,729,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the company. Nano Cap New Millennium Growth Fund L P bought a new position in shares of Alibaba Group in the fourth quarter worth approximately $1,246,000. FourThought Financial Partners LLC lifted its stake in shares of Alibaba Group by 679.0% in the fourth quarter. FourThought Financial Partners LLC now owns 13,656 shares of the specialty retailer's stock worth $2,002,000 after buying an additional 11,903 shares in the last quarter. Global Retirement Partners LLC lifted its stake in shares of Alibaba Group by 88.4% in the fourth quarter. Global Retirement Partners LLC now owns 14,141 shares of the specialty retailer's stock worth $2,073,000 after buying an additional 6,634 shares in the last quarter. Verde Servicos Internacionais S.A. lifted its stake in shares of Alibaba Group by 51.8% in the fourth quarter. Verde Servicos Internacionais S.A. now owns 89,572 shares of the specialty retailer's stock worth $13,129,000 after buying an additional 30,582 shares in the last quarter. Finally, ABN Amro Investment Solutions lifted its stake in shares of Alibaba Group by 72.4% in the fourth quarter. ABN Amro Investment Solutions now owns 107,950 shares of the specialty retailer's stock worth $15,823,000 after buying an additional 45,330 shares in the last quarter. Institutional investors own 13.47% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently issued reports on BABA. DZ Bank downgraded shares of Alibaba Group from a "buy" rating to a "hold" rating and set a $135.00 target price on the stock. in a research note on Friday, March 20th. BNP Paribas Exane started coverage on shares of Alibaba Group in a report on Wednesday, April 29th. They set an "outperform" rating and a $209.00 price objective for the company. Susquehanna boosted their price objective on shares of Alibaba Group from $170.00 to $185.00 and gave the company a "positive" rating in a report on Friday, May 15th. 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. Finally, Nomura boosted their price objective on shares of Alibaba Group from $200.00 to $207.00 and gave the company a "buy" rating in a report on Friday, May 15th. Two equities research 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 issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $188.76.

Alibaba Group Stock Down 1.1%

BABA opened at $130.02 on Friday. 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 has a 50 day moving average price of $131.59 and a 200-day moving average price of $147.87. Alibaba Group Holding Limited has a twelve month low of $103.71 and a twelve month high of $192.67. The stock has a market capitalization of $311.91 billion, a price-to-earnings ratio of 21.35, a PEG ratio of 2.28 and a beta of 0.50.

Alibaba Group (NYSE:BABA - Get Free Report) last announced 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 business had revenue of $35.30 billion during the quarter. Equities research analysts forecast that Alibaba Group Holding Limited will post 6.67 earnings per share for the current year.

Alibaba Group Dividend Announcement

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

Key Stories Impacting 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

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.