Alibaba Group (NYSE:BABA) Trading Down 4.1% – Here’s What Happened

Alibaba Group Holding Limited (NYSE:BABA)’s share price was down 4.1% during trading on Tuesday . The stock traded as low as $102.87 and last traded at $103.43. Approximately 13,142,062 shares were traded during trading, a decline of 26% from the average daily volume of 17,850,885 shares. The stock had previously closed at $107.81.

Analyst Ratings Changes

Several analysts recently commented on BABA shares. Barclays raised their target price on Alibaba Group from $107.00 to $137.00 and gave the stock an “overweight” rating in a report on Tuesday. Macquarie raised Alibaba Group from a “neutral” rating to an “outperform” rating and set a $145.00 target price on the stock in a report on Monday, October 7th. Robert W. Baird raised their target price on Alibaba Group from $85.00 to $88.00 and gave the stock an “outperform” rating in a report on Friday, August 16th. Benchmark reaffirmed a “buy” rating and set a $118.00 target price on shares of Alibaba Group in a report on Friday, August 16th. Finally, Truist Financial dropped their price objective on Alibaba Group from $110.00 to $100.00 and set a “buy” rating on the stock in a report on Friday, August 16th. Two research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Alibaba Group currently has a consensus rating of “Moderate Buy” and an average target price of $112.63.

Alibaba Group Stock Performance

The stock has a market cap of $253.90 billion, a PE ratio of 23.30, a P/E/G ratio of 0.55 and a beta of 0.35. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.17. The stock has a 50-day moving average of $91.46 and a 200 day moving average of $81.84.

Alibaba Group (NYSE:BABA) last announced its quarterly earnings data on Thursday, August 15th. The specialty retailer reported $16.44 EPS for the quarter, topping analysts’ consensus estimates of $1.87 by $14.57. Alibaba Group had a return on equity of 12.08% and a net margin of 7.31%. The firm had revenue of $243.24 billion for the quarter, compared to the consensus estimate of $248.32 billion. During the same quarter last year, the business posted $2.47 earnings per share. The firm’s revenue was up 3.9% compared to the same quarter last year. Equities analysts predict that Alibaba Group Holding Limited will post 7.93 EPS for the current fiscal year.

Institutional Investors Weigh In On Alibaba Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Primecap Management Co. CA increased its stake in Alibaba Group by 5.2% during the second quarter. Primecap Management Co. CA now owns 21,870,987 shares of the specialty retailer’s stock worth $1,574,711,000 after acquiring an additional 1,074,175 shares during the last quarter. ARGA Investment Management LP increased its stake in Alibaba Group by 39.2% during the first quarter. ARGA Investment Management LP now owns 3,582,005 shares of the specialty retailer’s stock worth $259,194,000 after acquiring an additional 1,009,397 shares during the last quarter. Discerene Group LP increased its stake in Alibaba Group by 21.2% during the first quarter. Discerene Group LP now owns 3,021,375 shares of the specialty retailer’s stock worth $218,627,000 after acquiring an additional 529,237 shares during the last quarter. AMF Tjanstepension AB increased its stake in Alibaba Group by 6.9% during the third quarter. AMF Tjanstepension AB now owns 2,789,883 shares of the specialty retailer’s stock worth $296,062,000 after acquiring an additional 178,999 shares during the last quarter. Finally, Wellington Management Group LLP increased its stake in Alibaba Group by 1.2% during the fourth quarter. Wellington Management Group LLP now owns 2,181,498 shares of the specialty retailer’s stock worth $169,088,000 after acquiring an additional 25,054 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, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others.