Alibaba Group (NYSE:BABA) Stock Price Down 1.9% - Here's Why

Key Points

• Alibaba shares fell 1.9% to about $109.02 in Friday midday trading, with volume 43% below the average daily level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $182.89, despite several target reductions and one downgrade to “Hold.”
• Alibaba’s latest quarterly results showed revenue of $39.64 billion, slightly above estimates and up 8.6% year over year, but EPS of $1.26 missed consensus by $0.68.

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report)'s share price was down 1.9% on Friday. The company traded as low as $108.58 and last traded at $109.0210. Approximately 6,613,509 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 11,543,995 shares. The stock had previously closed at $111.13.

Analysts Set New Price Targets

BABA has been the subject of a number of recent analyst reports. Jefferies Financial Group reiterated a "buy" rating and issued a $192.00 price target on shares of Alibaba Group in a research note on Thursday, October 8th. JPMorgan Chase & Co. reduced their target price on shares of Alibaba Group from $210.00 to $200.00 and set an "overweight" rating for the company in a research report on Monday. Nomura lowered their price objective on Alibaba Group from $207.00 to $178.00 and set a "buy" rating on the stock in a research note on Thursday, June 25th. Piper Sandler downgraded shares of Alibaba Group to a "hold" rating in a research report on Thursday, October 8th. Finally, Susquehanna boosted their target price on Alibaba Group from $185.00 to $190.00 and gave the stock a "positive" rating in a research note on Friday, August 28th. Two investment 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 stock. According to data from MarketBeat.com, Alibaba Group has a consensus rating of "Moderate Buy" and an average target price of $182.89.

Alibaba Group Stock Down 1.9%

The company has a market cap of $271.22 billion, a price-to-earnings ratio of 26.40, a price-to-earnings-growth ratio of 1.45 and a beta of 0.47. 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 stock's fifty day moving average is $114.74 and its two-hundred day moving average is $119.13.

Alibaba Group (NYSE:BABA - Get Free Report) last released its quarterly earnings results 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 company 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 quarter last year, the firm posted $14.75 EPS. Sell-side analysts predict that Alibaba Group Holding Limited will post 5.74 earnings per share for the current fiscal year.

Insider Buying and Selling at Alibaba Group

In other Alibaba Group news, General Counsel Siying Yu sold 6,764 shares of the firm's stock in a transaction on Friday, September 25th. The stock was sold at an average price of $13.58, for a total transaction of $91,855.12. Following the transaction, the general counsel directly owned 613,965 shares in the company, valued at approximately $8,337,644.70. This trade represents a 1.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Joseph Tsai acquired 720,000 shares of the business's stock in a transaction on Monday, August 24th. The shares were purchased at an average cost of $14.29 per share, for a total transaction of $10,288,800.00. Following the completion of the acquisition, the director directly owned 114,979,168 shares in the company, valued at approximately $1,643,052,310.72. The trade was a 0.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders sold 999,971 shares of company stock worth $13,563,304. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Aureus Asset Management LLC raised its stake in shares of Alibaba Group by 511.0% during the 1st quarter. Aureus Asset Management LLC now owns 9,361 shares of the specialty retailer's stock worth $1,174,000 after purchasing an additional 7,829 shares during the period. IPG Investment Advisors LLC increased its holdings in Alibaba Group by 97.8% during the second quarter. IPG Investment Advisors LLC now owns 17,019 shares of the specialty retailer's stock worth $1,647,000 after buying an additional 8,415 shares during the last quarter. Teachers Retirement System of The State of Kentucky raised its position in Alibaba Group by 24.5% in the first 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 period. Kera Capital Partners Inc. bought a new stake in Alibaba Group in the fourth quarter worth about $3,807,000. Finally, Turn8 Private Wealth Inc. boosted its stake in Alibaba Group by 70.3% in the first quarter. Turn8 Private Wealth Inc. now owns 37,324 shares of the specialty retailer's stock valued at $4,683,000 after acquiring an additional 15,404 shares during the last quarter. 13.47% of the stock is currently 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 a broad digital ecosystem connecting consumers, merchants, brands and businesses through online marketplaces and related services.

The company's China commerce businesses include Taobao and Tmall, while its international commerce operations include Alibaba.com, AliExpress, Lazada and Trendyol. Alibaba also provides logistics services through Cainiao, consumer services through platforms such as Ele.me and Freshippo, and digital media and entertainment offerings.

Alibaba Cloud provides cloud computing, data management, artificial intelligence and other technology services to businesses and organizations.

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