Alibaba Group (NYSE:BABA) CFO Sells 103,046 Shares of Stock

Alibaba Group Holding Limited (NYSE:BABA) CFO Hong Xu sold 103,046 shares of the firm’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $13.68, for a total value of $1,409,669.28. Following the sale, the chief financial officer 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. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Alibaba Group Stock Performance

Alibaba Group stock opened at $108.89 on Tuesday. The firm has a market capitalization of $270.65 billion, a PE ratio of 26.36, a price-to-earnings-growth ratio of 1.47 and a beta of 0.51. Alibaba Group Holding Limited has a one year low of $91.99 and a one year high of $192.67. The stock’s 50 day moving average price is $117.53 and its 200 day moving average price is $121.06. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.36 and a current ratio of 1.36.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) 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 analyst estimates of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. The firm’s revenue was up 8.6% compared to the same quarter last year. During the same period last year, the business earned $14.75 EPS. As a group, sell-side analysts expect that Alibaba Group Holding Limited will post 5.8 EPS for the current fiscal year.

More Alibaba Group News

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: China may approve Alibaba’s purchases of Nvidia’s RTX PRO 5500 chips, which would expand access to advanced processors for Alibaba Cloud and its internal AI projects. Improved chip availability could support the company’s ability to compete in China’s AI-cloud market. Alibaba nears approval for RTX PRO 5500 chip purchases
• Positive Sentiment: Alibaba announced a technology and cloud partnership with the Brooklyn Nets, providing a new showcase for its cloud, data and sports-technology offerings. The deal is strategically positive but is unlikely to materially change near-term financial results. Brooklyn Nets technology and cloud partnership
• Positive Sentiment: Wall Street’s average brokerage recommendation remains bullish, offering some support for the view that BABA may be undervalued after its decline. However, analyst ratings can be optimistic and are not a substitute for improving earnings or cash flow. Wall Street views on Alibaba
• Neutral Sentiment: CFO Hong Xu, General Counsel Siying Yu and insider Fang Jiang sold shares to cover tax withholding tied to vested equity awards. The transactions reduce insider holdings, including a larger 20.23% reduction for Xu, but their stated tax-related purpose makes them a weaker bearish signal than discretionary sales. Alibaba insider transaction filing
• Negative Sentiment: Multiple law firms publicized an October 5 lead-plaintiff deadline for a securities-fraud class action alleging Alibaba failed to disclose issues related to its Chinese military-company designation and AI “distillation” activities. The notices add headline and potential legal-risk pressure, although they largely repeat the same lawsuit information rather than announce a new ruling or financial liability. Alibaba securities class action deadline
• Negative Sentiment: Alibaba’s planned 5-trillion-to-10-trillion-parameter AI model and new Zhenwu V900 chip reinforce its long-term ambitions, but investors are concerned about the substantial data-center, chip and power spending required before customers validate the economics. The company’s latest quarterly EPS also missed consensus, increasing scrutiny of profitability.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on BABA shares. Nomura lowered their price target on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating for the company in a report on Thursday, June 25th. Weiss Ratings cut shares of Alibaba Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 18th. Sanford C. Bernstein restated an “outperform” rating and set a $165.00 target price on shares of Alibaba Group in a research note on Monday, September 7th. Robert W. Baird dropped their target price on Alibaba Group from $164.00 to $160.00 and set an “outperform” rating on the stock in a research report on Friday, August 21st. Finally, Barclays boosted their price target on Alibaba Group from $195.00 to $200.00 and gave the stock an “overweight” rating in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $187.05.

Hedge Funds Weigh In On Alibaba Group

Large investors have recently modified their holdings of the stock. Capital World Investors increased its holdings in Alibaba Group by 7.7% in the fourth quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock valued at $953,527,000 after buying an additional 466,847 shares during the last quarter. Norges Bank bought a new position in Alibaba Group during the 4th quarter worth approximately $594,477,000. AMF Tjanstepension AB grew its position in shares of Alibaba Group by 4.1% in the 1st quarter. AMF Tjanstepension AB now owns 2,206,634 shares of the specialty retailer’s stock worth $276,844,000 after acquiring an additional 86,613 shares in the last quarter. Altshuler Shaham Ltd bought a new stake in shares of Alibaba Group in the 4th quarter valued at approximately $160,410,000. Finally, Bamco Inc. NY increased its holdings in shares of Alibaba Group by 6.8% in the 4th quarter. Bamco Inc. NY now owns 1,071,647 shares of the specialty retailer’s stock valued at $157,082,000 after acquiring an additional 67,948 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 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.