Alibaba Group (NYSE:BABA) Stock Price Down 3.9% – Here’s What Happened

Alibaba Group Holding Limited (NYSE:BABA) shares fell 3.9% during trading on Wednesday. The stock traded as low as $103.57 and last traded at $104.3530. Approximately 11,783,190 shares were traded during mid-day trading, an increase of 3% from the average daily volume of 11,483,182 shares. The stock had previously closed at $108.61.

Analyst Ratings Changes

A number of research firms recently weighed in on BABA. Piper Sandler lowered shares of Alibaba Group to a “hold” rating in a research note on Thursday, October 8th. Weiss Ratings upgraded Alibaba Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, October 2nd. JPMorgan Chase & Co. cut their price target on Alibaba Group from $210.00 to $200.00 and set an “overweight” rating for the company in a report on Monday, October 12th. Barclays raised their price target on Alibaba Group from $195.00 to $200.00 and gave the stock an “overweight” rating in a report on Friday, August 21st. Finally, HSBC set a $170.00 price target on Alibaba Group in a research report on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $182.89.

Alibaba Group Price Performance

The stock has a market capitalization of $259.60 billion, a PE ratio of 25.27, a P/E/G ratio of 1.42 and a beta of 0.47. The firm’s 50 day simple moving average is $113.49 and its 200 day simple moving average is $118.81. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.36 and a quick ratio of 1.36.

Alibaba Group (NYSE:BABA) last announced its quarterly earnings data 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 business had revenue of $39.64 billion during the quarter, compared to analysts’ expectations 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 period last year, the company posted $14.75 EPS. As a group, equities analysts forecast that Alibaba Group Holding Limited will post 5.74 EPS for the current fiscal year.

Insider Transactions at Alibaba Group

In related news, Director Joseph C. Tsai bought 720,000 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The stock was bought at an average cost of $14.29 per share, for a total transaction of $10,288,800.00. Following the acquisition, the director directly owned 114,979,168 shares of the company’s stock, valued at $1,643,052,310.72. The trade was a 0.63% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Yongming Wu purchased 350,000 shares of Alibaba Group stock in a transaction that occurred on Monday, August 24th. The shares were bought at an average price of $14.24 per share, for a total transaction of $4,984,000.00. Following the completion of the transaction, the chief executive officer owned 1,364,418 shares in the company, valued at $19,429,312.32. The trade was a 34.50% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have sold 999,971 shares of company stock valued at $13,563,304. 12.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Alibaba Group

Several hedge funds and other institutional investors have recently bought and sold shares of BABA. Sowell Financial Services LLC lifted its stake in shares of Alibaba Group by 3.3% in the 3rd quarter. Sowell Financial Services LLC now owns 7,378 shares of the specialty retailer’s stock valued at $793,000 after purchasing an additional 235 shares during the period. Lakeshore Capital Group Inc. boosted its position in shares of Alibaba Group by 11.5% during the third quarter. Lakeshore Capital Group Inc. now owns 16,959 shares of the specialty retailer’s stock valued at $1,824,000 after purchasing an additional 1,751 shares in the last quarter. Kapitalo Investimentos Ltda purchased a new stake in Alibaba Group in the third quarter worth $312,000. QV Investors Inc. grew its stake in Alibaba Group by 66.3% in the third quarter. QV Investors Inc. now owns 123,617 shares of the specialty retailer’s stock worth $13,294,000 after purchasing an additional 49,270 shares during the period. Finally, Prime Capital Investment Advisors LLC raised its holdings in Alibaba Group by 83.7% in the third quarter. Prime Capital Investment Advisors LLC now owns 24,296 shares of the specialty retailer’s stock worth $2,613,000 after purchasing an additional 11,071 shares in the last quarter. Institutional investors own 13.47% of the company’s stock.

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 that connects consumers, merchants, brands and businesses through online marketplaces, technology platforms and related services.

The company’s China commerce businesses include Taobao, a consumer-focused marketplace, and Tmall, which enables brands and retailers to sell directly to consumers. Alibaba also operates 1688, a business-to-business wholesale marketplace.