Alibaba Group (NYSE:BABA) Stock Jumps 2.7% - What's Next?

Key Points

• Alibaba shares rose 2.7% to $108.14, with trading volume about 65% above its average.
• Analysts maintained a broadly positive outlook: the stock carries a “Moderate Buy” consensus rating and an average price target of $182.89.
• In its latest reported quarter, Alibaba’s revenue increased 8.6% year over year and slightly beat estimates, while EPS of $1.26 fell short of the $1.94 consensus.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) shot up 2.7% on Thursday. The stock traded as high as $111.17 and last traded at $108.1350. Approximately 18,866,675 shares traded hands during trading, an increase of 65% from the average session volume of 11,412,923 shares. The stock had previously closed at $105.29.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on BABA shares. Sanford C. Bernstein restated an "outperform" rating and issued a $165.00 target price on shares of Alibaba Group in a report on Monday, September 7th. Jefferies Financial Group reiterated a "buy" rating and set a $192.00 price target on shares of Alibaba Group in a report on Thursday, October 8th. Barclays upped their price target on Alibaba Group from $195.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 21st. Citigroup increased their price objective on Alibaba Group from $190.00 to $193.00 and gave the stock a "buy" rating in a research note on Thursday, October 8th. Finally, 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. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Alibaba Group presently has an average rating of "Moderate Buy" and an average target price of $182.89.

Alibaba Group Trading Up 2.7%

The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.21. The company has a market cap of $269.01 billion, a PE ratio of 26.18, a P/E/G ratio of 1.31 and a beta of 0.44. The business's 50-day simple moving average is $108.65 and its 200-day simple moving average is $125.60.

Alibaba Group (NYSE:BABA - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The specialty retailer reported $1.26 EPS for the quarter, missing the consensus estimate of $1.94 by ($0.68). Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. The company had revenue of $39.64 billion for the quarter, compared to analysts' expectations of $39.52 billion. During the same quarter in the prior year, the firm earned $14.75 earnings per share. The company's revenue was up 8.6% on a year-over-year basis. As a group, analysts expect that Alibaba Group Holding Limited will post 5.76 EPS for the current fiscal year.

Insider Transactions at Alibaba Group

In other news, CEO Yongming Wu bought 350,000 shares of the stock in a transaction on Monday, August 24th. The shares were purchased at an average price 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. This trade represents a 34.50% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Hong Xu sold 103,046 shares of the company's stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $13.68, for a total value of $1,409,669.28. Following the completion of the transaction, the chief financial officer directly owned 406,450 shares in the company, valued at approximately $5,560,236. The trade was a 20.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 999,971 shares of company stock valued at $13,563,304. Corporate insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Alibaba Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BABA. Continuum Advisory LLC bought a new position in shares of Alibaba Group during the 2nd quarter worth approximately $28,000. GK Wealth Management LLC bought a new stake in Alibaba Group during the 3rd quarter worth about $32,000. Latitude Advisors LLC acquired a new stake in shares of Alibaba Group in the third quarter valued at approximately $43,000. Global Assets Advisory LLC acquired a new stake in shares of Alibaba Group in the 1st quarter valued at $56,000. Finally, Silver Grove Financial Group Inc. raised its holdings in Alibaba Group by 107.4% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 618 shares of the specialty retailer's stock worth $66,000 after purchasing an additional 320 shares during 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 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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