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

Alibaba Group Holding Limited (NYSE:BABA)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $132.54, but opened at $138.16. Alibaba Group shares last traded at $136.96, with a volume of 7,264,932 shares.

Analysts Set New Price Targets

A number of equities analysts recently commented on BABA shares. StockNews.com raised Alibaba Group from a “hold” rating to a “buy” rating in a report on Friday, February 21st. Bank of America raised their price target on Alibaba Group from $117.00 to $150.00 and gave the company a “buy” rating in a report on Friday, February 21st. Morgan Stanley raised Alibaba Group from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $100.00 to $180.00 in a research note on Monday, February 24th. Sanford C. Bernstein upgraded Alibaba Group from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $104.00 to $165.00 in a research report on Tuesday, February 25th. Finally, Robert W. Baird increased their price target on Alibaba Group from $110.00 to $125.00 and gave the company an “outperform” rating in a report on Wednesday, February 19th. Fifteen investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $144.07.

Alibaba Group Price Performance

The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.19. The company has a market cap of $325.48 billion, a PE ratio of 19.80, a price-to-earnings-growth ratio of 0.61 and a beta of 0.28. The firm has a 50 day simple moving average of $108.56 and a 200-day simple moving average of $97.90.

Alibaba Group (NYSE:BABA) last released its quarterly earnings data on Thursday, February 20th. The specialty retailer reported $2.77 EPS for the quarter, missing the consensus estimate of $2.84 by ($0.07). The company had revenue of $38.38 billion during the quarter, compared to analysts’ expectations of $38.19 billion. Alibaba Group had a return on equity of 12.89% and a net margin of 12.29%. As a group, research analysts predict that Alibaba Group Holding Limited will post 7.86 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Alibaba Group

Hedge funds have recently made changes to their positions in the stock. Sanders Capital LLC boosted its holdings in Alibaba Group by 0.3% in the third quarter. Sanders Capital LLC now owns 18,460,434 shares of the specialty retailer’s stock valued at $1,959,021,000 after purchasing an additional 60,667 shares during the period. Appaloosa LP raised its holdings in Alibaba Group by 18.4% during the fourth quarter. Appaloosa LP now owns 11,843,158 shares of the specialty retailer’s stock worth $1,004,181,000 after purchasing an additional 1,843,158 shares in the last quarter. Hhlr Advisors LTD. lifted its position in shares of Alibaba Group by 64.1% during the 3rd quarter. Hhlr Advisors LTD. now owns 8,827,600 shares of the specialty retailer’s stock worth $936,785,000 after buying an additional 3,448,152 shares during the last quarter. Norges Bank acquired a new position in shares of Alibaba Group in the 4th quarter valued at $585,479,000. Finally, Bank of America Corp DE grew its position in shares of Alibaba Group by 7.0% in the 4th quarter. Bank of America Corp DE now owns 6,676,773 shares of the specialty retailer’s stock valued at $566,124,000 after buying an additional 438,537 shares during the last quarter. Hedge funds and other institutional investors own 13.47% of the company’s stock.

Alibaba Group Company Profile

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.