Alibaba Group (NYSE:BABA) Trading Down 2.2% – Time to Sell?

Shares of Alibaba Group Holding Limited (NYSE:BABA) fell 2.2% during trading on Tuesday . The company traded as low as $101.83 and last traded at $102.68. Approximately 11,294,379 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 11,839,213 shares. The stock had previously closed at $104.97.

More Alibaba Group News

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

• Negative Sentiment: Alibaba sued the U.S. Department of Defense over its designation as a “Chinese military company,” a move that highlights ongoing regulatory and geopolitical risk for the stock. Alibaba sues US Department of Defense for branding it a ‘Chinese military company’
• Positive Sentiment: Alibaba introduced HappyHorse 1.1, a new video-generation AI model, and launched a global AI filmmaking competition, reinforcing its push into AI and cloud growth. Alibaba unveils HappyHorse 1.1 video generation model, launches global AI filmmaking competition
• Positive Sentiment: Market commentary remains constructive on Alibaba’s AI and cloud strategy, with one recent analysis calling the stock a buy based on its “full-stack physical AI” opportunity. Alibaba Group: Qwen-Robot Triggers Full-Stack Physical AI Inflection Point; Reiterate BUY
• Neutral Sentiment: Alibaba has attracted fresh trading interest and analyst attention, but recent coverage does not appear to be the main driver of the stock move. Alibaba Group Holding Limited (BABA) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Separately, recent market notes say Alibaba remains heavily watched and still carries a “Moderate Buy” consensus, which may help support sentiment but is not a new catalyst. Alibaba Group Holding Limited (NYSE:BABA) Receives Consensus Rating of “Moderate Buy” from Analysts
• Negative Sentiment: Some investors are still worried that Alibaba’s aggressive AI investment plan could pressure margins before those projects translate into meaningful returns. Alibaba Stock Pulls Back: Why Chairman Joe Tsai’s Bold New AI Gambit Has Wall Street Hesitant

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Wall Street Zen raised shares of Alibaba Group from a “sell” rating to a “hold” rating in a report on Saturday, May 23rd. JPMorgan Chase & Co. raised their target price on shares of Alibaba Group from $200.00 to $205.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Robert W. Baird decreased their target price on shares of Alibaba Group from $174.00 to $164.00 and set an “outperform” rating on the stock in a research note on Friday, March 20th. Mizuho upped their price target on shares of Alibaba Group from $190.00 to $195.00 and gave the stock an “outperform” rating in a report on Thursday, May 14th. Finally, Freedom Capital upgraded Alibaba Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, April 24th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $188.76.

Alibaba Group Price Performance

The company has a 50 day moving average price of $128.29 and a 200-day moving average price of $141.67. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. The company has a market cap of $246.34 billion, a price-to-earnings ratio of 16.86, a P/E/G ratio of 1.84 and a beta of 0.47.

Alibaba Group (NYSE:BABA) last posted its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The business had revenue of $35.30 billion for the quarter. As a group, equities research analysts predict that Alibaba Group Holding Limited will post 6.75 EPS for the current fiscal year.

Alibaba Group Announces Dividend

The firm also recently declared an annual dividend, which will be paid on Monday, July 13th. Stockholders of record on Thursday, June 11th will be paid a dividend of $1.05 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a dividend yield of 93.0%. Alibaba Group’s dividend payout ratio (DPR) is presently 16.91%.

Institutional Trading of Alibaba Group

Several institutional investors have recently modified their holdings of BABA. Northwestern Mutual Wealth Management Co. raised its position in Alibaba Group by 7,680.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock worth $881,554,000 after purchasing an additional 5,936,847 shares during the last quarter. Capital World Investors grew its position in shares of Alibaba Group by 1,074.9% in the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock valued at $1,079,229,000 after buying an additional 5,524,354 shares during the last quarter. Norges Bank acquired a new stake in shares of Alibaba Group in the fourth quarter valued at about $594,477,000. Artisan Partners Limited Partnership acquired a new stake in shares of Alibaba Group in the third quarter valued at about $290,208,000. Finally, Coatue Management LLC raised its position in shares of Alibaba Group by 130.1% during the third quarter. Coatue Management LLC now owns 1,996,593 shares of the specialty retailer’s stock worth $356,851,000 after acquiring an additional 1,128,826 shares during the last quarter. Institutional investors own 13.47% of the company’s stock.

About Alibaba Group

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co?founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high?profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.