Alibaba Group (NYSE:BABA) Shares Down 3.8% - Here's Why

Key Points

• Alibaba shares fell 3.8% to about $105.28, with trading volume 4% below its average.
• Analysts remain broadly positive: the stock has a “Moderate Buy” consensus and an average price target of $183.26, though some firms recently lowered ratings or targets.
• In its latest reported quarter, Alibaba missed EPS expectations ($1.26 versus $1.94) but slightly beat revenue forecasts at $39.64 billion; revenue rose 8.6% year over year.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s stock price fell 3.8% on Monday. The stock traded as low as $105.13 and last traded at $105.2790. 10,984,345 shares changed hands during trading, a decline of 4% from the average daily volume of 11,410,288 shares. The stock had previously closed at $109.45.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Susquehanna raised their price objective on Alibaba Group from $185.00 to $190.00 and gave the stock a "positive" rating in a research report on Friday, August 28th. Barclays upped their target price on Alibaba Group from $195.00 to $200.00 and gave the company an "overweight" rating in a report on Friday, August 21st. Wells Fargo & Company set a $190.00 target price on Alibaba Group in a report on Monday. Robert W. Baird reduced their price target on shares of Alibaba Group from $164.00 to $160.00 and set an "outperform" rating for the company in a research report on Friday, August 21st. Finally, Piper Sandler cut shares of Alibaba Group to a "hold" rating in a report on Thursday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Alibaba Group has a consensus rating of "Moderate Buy" and a consensus target price of $183.26.

Alibaba Group Trading Down 3.8%

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 company has a fifty day moving average of $108.28 and a 200-day moving average of $125.04. The firm has a market capitalization of $261.91 billion, a PE ratio of 25.49, a price-to-earnings-growth ratio of 1.42 and a beta of 0.44.

Alibaba Group (NYSE:BABA - Get Free Report) last released its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (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 net margin of 7.00% and a return on equity of 4.79%. Alibaba Group's revenue for the quarter was up 8.6% on a year-over-year basis. During the same period in the previous year, the business posted $14.75 EPS. On average, sell-side analysts anticipate that Alibaba Group Holding Limited will post 5.76 earnings per share for the current fiscal year.

Insider Activity

In other Alibaba Group news, CEO Yongming Wu bought 350,000 shares of Alibaba Group stock in a transaction on Monday, August 24th. The stock was purchased at an average cost of $14.24 per share, for a total transaction of $4,984,000.00. Following the completion of the purchase, the chief executive officer directly owned 1,364,418 shares of the company's stock, valued at $19,429,312.32. The trade was a 34.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joseph Tsai bought 720,000 shares of Alibaba Group stock in a transaction on Monday, August 24th. The stock was acquired at an average price of $14.29 per share, with a total value of $10,288,800.00. Following the completion of the purchase, the director directly owned 114,979,168 shares of the company's stock, valued at approximately $1,643,052,310.72. The trade was a 0.63% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have sold 999,971 shares of company stock valued at $13,563,304. 12.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of BABA. Aureus Asset Management LLC increased its holdings in shares of Alibaba Group by 511.0% during the first quarter. Aureus Asset Management LLC now owns 9,361 shares of the specialty retailer's stock worth $1,174,000 after buying an additional 7,829 shares in the last quarter. IPG Investment Advisors LLC grew its position in Alibaba Group by 97.8% during the 2nd quarter. IPG Investment Advisors LLC now owns 17,019 shares of the specialty retailer's stock worth $1,647,000 after acquiring an additional 8,415 shares during the last quarter. Teachers Retirement System of The State of Kentucky grew its position in Alibaba Group by 24.5% during the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer's stock worth $32,567,000 after acquiring an additional 51,000 shares during the last quarter. QV Investors Inc. grew its position in Alibaba Group by 66.3% during the 3rd quarter. QV Investors Inc. now owns 123,617 shares of the specialty retailer's stock worth $13,294,000 after acquiring an additional 49,270 shares during the last quarter. Finally, Jennison Associates LLC increased its holdings in Alibaba Group by 54.2% during the 1st quarter. Jennison Associates LLC now owns 83,627 shares of the specialty retailer's stock valued at $10,492,000 after purchasing an additional 29,392 shares in the last quarter. Institutional investors 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 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.

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