RWWM Inc. Sells 216,782 Shares of Alibaba Group Holding Limited $BABA

Key Points

• RWWM Inc. reduced its Alibaba stake by 9.1% in the first quarter, selling 216,782 shares but still holding 2.16 million shares worth about $271.2 million. Alibaba remains the firm’s largest portfolio position, making up 19.8% of its investments.
• Alibaba’s recent financial and stock metrics were mixed: the company reported just $0.01 EPS on $35.3 billion in quarterly revenue, while shares traded at $112.30 with a market cap of $269.6 billion and remain well below their 52-week high.
• Wall Street sentiment is cautiously positive, with a consensus “Moderate Buy” rating and a target price of $186.90, even as recent insider selling and a reported legal investigation could weigh on investor sentiment.

RWWM Inc. lowered its holdings in Alibaba Group Holding Limited (NYSE:BABA - Free Report) by 9.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,161,777 shares of the specialty retailer's stock after selling 216,782 shares during the quarter. Alibaba Group accounts for about 19.8% of RWWM Inc.'s investment portfolio, making the stock its biggest position. RWWM Inc. owned about 0.09% of Alibaba Group worth $271,217,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. Hoey Investments Inc. boosted its holdings in Alibaba Group by 95.2% during the first quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer's stock valued at $26,000 after purchasing an additional 100 shares in the last quarter. Costello Asset Management INC bought a new position in shares of Alibaba Group during the 4th quarter worth approximately $34,000. Palisade Asset Management LLC bought a new position in shares of Alibaba Group during the 3rd quarter worth approximately $37,000. Palladiem LLC acquired a new stake in Alibaba Group in the 4th quarter valued at $38,000. Finally, SJS Investment Consulting Inc. boosted its stake in Alibaba Group by 15,000.0% in the 1st quarter. SJS Investment Consulting Inc. now owns 302 shares of the specialty retailer's stock valued at $38,000 after buying an additional 300 shares in the last quarter. Institutional investors own 13.47% of the company's stock.

Alibaba Group Stock Performance

BABA stock opened at $112.30 on Wednesday. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28. The company has a 50 day moving average price of $118.10 and a 200 day moving average price of $135.83. Alibaba Group Holding Limited has a fifty-two week low of $91.99 and a fifty-two week high of $192.67. The stock has a market capitalization of $269.61 billion, a PE ratio of 18.44, a price-to-earnings-growth ratio of 2.07 and a beta of 0.51.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its quarterly earnings data 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%. Analysts forecast that Alibaba Group Holding Limited will post 6.28 EPS for the current year.

Alibaba Group Announces Dividend

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

Wall Street Analyst Weigh In

Several research firms have issued reports on BABA. Wall Street Zen upgraded Alibaba Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 23rd. Mizuho boosted their target price on shares of Alibaba Group from $190.00 to $195.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. BNP Paribas Exane began coverage on shares of Alibaba Group in a report on Wednesday, April 29th. They issued an "outperform" rating and a $209.00 target price on the stock. JPMorgan Chase & Co. upped their target price on shares of Alibaba Group from $200.00 to $205.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Finally, DZ Bank cut shares of Alibaba Group from a "buy" rating to a "hold" rating and set a $135.00 target price for the company. in a research report on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $186.90.

Alibaba Group News Roundup

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

• Positive Sentiment: Alibaba is being linked to a broader rally in AI names, with reports highlighting its partnership with Honor to build AI “agentic” devices and renewed investor interest in the company’s AI/cloud growth story. Alibaba to team up with Honor in race to build AI agentic devices
• Positive Sentiment: Market commentary suggests Alibaba may still trade at a discount to its intrinsic value, supported by AI cloud momentum and ongoing share buybacks, which could bolster bullish sentiment. Alibaba (BABA) Stock May Trade At A Discount After AI Cloud Rally
• Positive Sentiment: Recent articles note that Alibaba has been one of the stocks contributing to strong performance in leveraged ETFs tied to AI and tech gains, reflecting improving short-term momentum. 4 Best-Performing Leveraged ETFs of Last Week
• Neutral Sentiment: Alibaba remains a heavily watched stock, with new broker commentary and rising search interest suggesting traders are actively reassessing the name, but without a clear new catalyst in the note itself. Brokers Suggest Investing in Alibaba (BABA): Read This Before Placing a Bet
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of Alibaba investors, which can create legal overhang and pressure sentiment until more details are known. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Alibaba Group Holding Limited - BABA

Insiders Place Their Bets

In related news, CEO Fan (Fj) Jiang sold 13,579 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.10, for a total value of $164,305.90. Following the transaction, the chief executive officer owned 556,617 shares in the company, valued at $6,735,065.70. This trade represents a 2.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 4,898 shares of Alibaba Group stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.09, for a total value of $59,216.82. Following the completion of the sale, the insider owned 5,559,511 shares of the company's stock, valued at approximately $67,214,487.99. The trade was a 0.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 920,303 shares of company stock valued at $70,796,370 over the last 90 days. Corporate insiders own 12.50% of the company's stock.

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.

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.