Alibaba Group (NYSE:BABA) Shares Break Above 50 Day Moving Average - Here's Why

Key Points

• Alibaba shares moved above their 50-day moving average, reaching $109.69 before last trading at $109.24, compared with the average of $108.28.
• Analysts’ consensus rating is “Moderate Buy”, with a consensus price target of $182.89; recent targets cited ranged from $165 to $200.
• In its latest reported quarter, Alibaba posted revenue of $39.64 billion, up 8.6% year over year and slightly ahead of estimates, but EPS of $1.26 fell short of the $1.94 consensus.

Shares of Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) crossed above its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $108.28 and traded as high as $109.69. Alibaba Group shares last traded at $109.2380, with a volume of 9,546,798 shares.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $165.00 price objective on shares of Alibaba Group in a research report on Monday, September 7th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $192.00 price target on shares of Alibaba Group in a research report on Thursday, October 8th. Barclays increased their price objective on shares of Alibaba Group from $195.00 to $200.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. Weiss Ratings upgraded shares of Alibaba Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 2nd. Finally, Benchmark reiterated a "buy" rating on shares of Alibaba Group in a report on Thursday, August 20th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $182.89.

Alibaba Group Trading Up 1.1%

The company has a debt-to-equity ratio of 0.21, a current ratio of 1.36 and a quick ratio of 1.36. The stock's 50 day simple moving average is $108.28 and its two-hundred day simple moving average is $125.04. The stock has a market capitalization of $271.76 billion, a PE ratio of 26.45, a PEG ratio of 1.32 and a beta of 0.44.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 EPS for the quarter, missing analysts' consensus estimates of $1.94 by ($0.68). The firm had revenue of $39.64 billion for the quarter, compared to analyst estimates of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. Alibaba Group's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the previous year, the business earned $14.75 EPS. On average, sell-side analysts expect that Alibaba Group Holding Limited will post 5.76 EPS for the current year.

Insider Transactions at Alibaba Group

In related news, CEO Yongming Wu bought 350,000 shares of the company's stock in a transaction on Monday, August 24th. The shares were acquired at an average cost of $14.24 per share, for a total transaction of $4,984,000.00. Following the purchase, the chief executive officer directly owned 1,364,418 shares of the company's stock, valued at approximately $19,429,312.32. The trade was a 34.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Siying Yu sold 6,764 shares of the firm's stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $13.58, for a total value of $91,855.12. Following the completion of the transaction, the general counsel directly owned 613,965 shares of the company's stock, valued at $8,337,644.70. The trade was a 1.09% 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 999,971 shares of company stock worth $13,563,304 over the last quarter. Corporate insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Alibaba Group

Large investors have recently modified their holdings of the business. Continuum Advisory LLC bought a new stake in Alibaba Group in the second quarter valued at about $28,000. GK Wealth Management LLC acquired a new stake in Alibaba Group during the third quarter worth approximately $32,000. Latitude Advisors LLC bought a new stake in shares of Alibaba Group in the 3rd quarter valued at approximately $43,000. Global Assets Advisory LLC acquired a new position in shares of Alibaba Group in the first quarter valued at $56,000. Finally, Anchor Investment Management LLC raised its stake in Alibaba Group by 28.2% in the 1st quarter. Anchor Investment Management LLC now owns 545 shares of the specialty retailer's stock valued at $68,000 after acquiring an additional 120 shares during the period. 13.47% of the stock is owned by hedge funds and other institutional investors.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates digital platforms that connect consumers, merchants, businesses and other participants in commerce.

Its businesses include China-focused marketplaces such as Taobao and Tmall, international platforms including AliExpress and Alibaba.com, and Alibaba Cloud, which provides cloud computing and related technology services. The group also has operations in areas such as logistics, local services and digital media.

Alibaba serves customers and businesses in China and across international markets.

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.