Alibaba Group (NYSE:BABA) Shares Up 2.7% – Here’s Why

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

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Benchmark reaffirmed a “buy” rating on shares of Alibaba Group in a research report on Thursday, August 20th. JPMorgan Chase & Co. reduced their target price on shares of Alibaba Group from $210.00 to $200.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. Citigroup upped their target price on shares of Alibaba Group from $190.00 to $193.00 and gave the company a “buy” rating in a research note on Thursday, October 8th. Robert W. Baird lowered their price target on shares of Alibaba Group from $164.00 to $160.00 and set an “outperform” rating for the company in a report on Friday, August 21st. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $165.00 price target on shares of Alibaba Group in a research note on Monday, September 7th. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Alibaba Group has a consensus rating of “Moderate Buy” and a consensus target price of $182.89.

Alibaba Group Price Performance

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 business’s 50-day moving average price is $108.28 and its two-hundred day moving average price is $125.04. The firm has a market cap of $271.76 billion, a price-to-earnings ratio of 26.45, a P/E/G ratio of 1.32 and a beta of 0.44.

Alibaba Group (NYSE:BABA) last posted its quarterly earnings results 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 company 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 company’s revenue was up 8.6% on a year-over-year basis. During the same period in the prior year, the company earned $14.75 earnings per share. On average, research analysts forecast that Alibaba Group Holding Limited will post 5.76 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Hong Xu sold 103,046 shares of the business’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 sale, the chief financial officer directly owned 406,450 shares of the company’s stock, valued at $5,560,236. The trade was a 20.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 885,272 shares of the company’s stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $13.55, for a total value of $11,995,435.60. Following the sale, the insider owned 4,679,097 shares in the company, valued at $63,401,764.35. The trade was a 15.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 999,971 shares of company stock valued at $13,563,304. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alibaba Group

Institutional investors and hedge funds have recently made changes to their positions in the company. AMF Tjanstepension AB boosted its holdings 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 valued at $276,844,000 after buying an additional 86,613 shares during the period. Baird Financial Group Inc. lifted its holdings in Alibaba Group by 6.7% in the second quarter. Baird Financial Group Inc. now owns 754,749 shares of the specialty retailer’s stock worth $72,441,000 after acquiring an additional 47,358 shares during the last quarter. Sei Investments Co. boosted its stake in Alibaba Group by 63.5% in the first quarter. Sei Investments Co. now owns 573,409 shares of the specialty retailer’s stock valued at $71,940,000 after acquiring an additional 222,666 shares during the period. Candriam S.C.A. boosted its stake in Alibaba Group by 104.6% in the first quarter. Candriam S.C.A. now owns 564,818 shares of the specialty retailer’s stock valued at $70,862,000 after acquiring an additional 288,738 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Alibaba Group by 19.3% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 534,794 shares of the specialty retailer’s stock valued at $67,095,000 after purchasing an additional 86,484 shares during the last quarter. 13.47% of the stock is owned by institutional investors and hedge funds.

Alibaba Group Company Profile

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.