Alibaba Group (NYSE:BABA) Shares Down 1.5% - Time to Sell?

Key Points

• Alibaba shares fell 1.5% to $98.08, trading below both its 50-day moving average of $110.30 and 200-day moving average of $126.94.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $182.89, well above the current share price.
• Alibaba’s latest quarter showed revenue growth of 8.6% to $39.64 billion but earnings per share of $1.26 missed estimates of $1.94. Insider activity was mixed, with a director buying shares while insiders sold nearly 1 million shares over the past 90 days.

Shares of Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) were down 1.5% during trading on Friday. The stock traded as low as $97.48 and last traded at $98.08. Approximately 8,345,968 shares changed hands during trading, a decline of 27% from the average daily volume of 11,392,898 shares. The stock had previously closed at $99.54.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on BABA. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $165.00 price target on shares of Alibaba Group in a research report on Monday, September 7th. Jefferies Financial Group reissued a "buy" rating and set a $192.00 price objective on shares of Alibaba Group in a research report on Thursday, October 8th. Benchmark restated a "buy" rating on shares of Alibaba Group in a research note on Thursday, August 20th. Robert W. Baird lowered their target price on Alibaba Group from $164.00 to $160.00 and set an "outperform" rating on the stock in a report on Friday, August 21st. Finally, JPMorgan Chase & Co. dropped their price target on Alibaba Group from $210.00 to $200.00 and set an "overweight" rating on the stock in a research report on Monday, October 12th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $182.89.

Alibaba Group Price Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.36 and a current ratio of 1.36. The company has a 50-day moving average of $110.30 and a 200 day moving average of $126.94. The firm has a market cap of $244.00 billion, a P/E ratio of 23.75, a P/E/G ratio of 1.31 and a beta of 0.47.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.68). The firm had revenue of $39.64 billion during the quarter, compared to the consensus estimate of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The firm'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 company posted $14.75 EPS. On average, sell-side analysts anticipate that Alibaba Group Holding Limited will post 5.76 EPS for the current year.

Insider Buying and Selling

In related news, insider Fang Jiang sold 885,272 shares of the business's stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $13.55, for a total value of $11,995,435.60. Following the completion of the transaction, the insider owned 4,679,097 shares in the company, valued at $63,401,764.35. The trade was a 15.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Joseph C. Tsai bought 720,000 shares of the company's stock in a transaction dated Monday, August 24th. The shares were purchased at an average price of $14.29 per share, with a total value of $10,288,800.00. Following the transaction, the director owned 114,979,168 shares of the company's stock, valued at $1,643,052,310.72. The trade was a 0.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 999,971 shares of company stock valued at $13,563,304 in the last 90 days. 12.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Accredited Investors Inc. boosted its stake in Alibaba Group by 2.9% in the 1st quarter. Accredited Investors Inc. now owns 2,858 shares of the specialty retailer's stock worth $359,000 after purchasing an additional 80 shares during the period. Hoey Investments Inc. increased 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 worth $26,000 after buying an additional 100 shares during the last quarter. Angeles Wealth Management LLC raised its holdings in shares of Alibaba Group by 0.3% in the 2nd quarter. Angeles Wealth Management LLC now owns 30,421 shares of the specialty retailer's stock valued at $2,952,000 after purchasing an additional 100 shares during the period. Hardin Capital Partners LLC lifted its position in shares of Alibaba Group by 1.5% in the second quarter. Hardin Capital Partners LLC now owns 6,945 shares of the specialty retailer's stock valued at $670,000 after buying an additional 104 shares during the last quarter. Finally, Magnus Financial Group LLC lifted its holdings in Alibaba Group by 1.0% during the 3rd quarter. Magnus Financial Group LLC now owns 10,851 shares of the specialty retailer's stock valued at $1,167,000 after purchasing an additional 105 shares during the last quarter. Institutional investors and hedge funds own 13.47% of the company's stock.

About Alibaba Group

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem that connects consumers, merchants, brands and businesses through online marketplaces, technology platforms and related services.

The company's China commerce businesses include Taobao, a consumer-focused marketplace, and Tmall, which enables brands and retailers to sell directly to consumers. Alibaba also operates 1688, a business-to-business wholesale marketplace.

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