Alibaba Group (NYSE:BABA) Trading Up 1.2% – Still a Buy?

Alibaba Group Holding Limited (NYSE:BABA) was up 1.2% during mid-day trading on Thursday . The stock traded as high as $109.14 and last traded at $108.5530. Approximately 8,100,156 shares were traded during trading, a decline of 32% from the average session volume of 11,862,076 shares. The stock had previously closed at $107.27.

Alibaba Group News Summary

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

• Neutral Sentiment: An investor letter argued that Alibaba’s elevated short-term capital expenditures are pressuring free cash flow but have created an estimated 30% valuation discount, suggesting potential long-term upside if spending produces stronger growth. Alibaba’s Short-Term Capex Drag Creates a 30% Valuation Discount
• Neutral Sentiment: Taobao, Alibaba’s e-commerce platform, promoted an exhibition focused on unconventional toys and plush products. The event may support consumer engagement but has limited direct impact on near-term earnings. Taobao Bets Big on ‘Ugly Goods’

Wall Street Analyst Weigh In

BABA has been the topic of a number of research reports. Nomura decreased their target price on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating on the stock in a research note on Thursday, June 25th. Zacks Research upgraded Alibaba Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, June 2nd. Barclays increased their price target on Alibaba Group from $195.00 to $200.00 and gave the company an “overweight” rating in a report on Friday, August 21st. HSBC set a $170.00 price objective on Alibaba Group in a research report on Thursday, July 9th. Finally, Wall Street Zen upgraded Alibaba Group from a “sell” rating to a “hold” rating in a report on Saturday, May 23rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Alibaba Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $187.45.

Alibaba Group Stock Up 1.2%

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 simple moving average is $118.03 and its 200 day simple moving average is $122.41. The company has a market capitalization of $269.82 billion, a PE ratio of 26.28, a P/E/G ratio of 1.44 and a beta of 0.51.

Alibaba Group (NYSE:BABA) last posted its quarterly earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share 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 analysts’ expectations of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. The business’s quarterly revenue was up 8.6% on a year-over-year basis. During the same period last year, the company earned $14.75 EPS. As a group, analysts anticipate that Alibaba Group Holding Limited will post 5.91 earnings per share for the current fiscal year.

Insider Transactions at Alibaba Group

In other Alibaba Group news, Director Joseph Tsai acquired 720,000 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The shares were purchased at an average cost of $14.29 per share, for a total transaction of $10,288,800.00. Following the completion of the acquisition, the director owned 114,979,168 shares of the company’s stock, valued at approximately $1,643,052,310.72. The trade was a 0.63% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Hong Xu sold 175,054 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $12.15, for a total value of $2,126,906.10. Following the completion of the transaction, the chief financial officer owned 280,496 shares of the company’s stock, valued at $3,408,026.40. The trade was a 38.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 920,303 shares of company stock valued at $70,796,370 in the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alibaba Group

A number of hedge funds have recently modified their holdings of the business. IPG Investment Advisors LLC raised its holdings in Alibaba Group by 97.8% in the 2nd quarter. IPG Investment Advisors LLC now owns 17,019 shares of the specialty retailer’s stock valued at $1,647,000 after buying an additional 8,415 shares during the period. WINTON GROUP Ltd acquired a new position in Alibaba Group in the second quarter valued at about $1,008,000. NorthRock Partners LLC boosted its stake in Alibaba Group by 9.9% during the second quarter. NorthRock Partners LLC now owns 3,109 shares of the specialty retailer’s stock worth $298,000 after buying an additional 280 shares during the period. NewEdge Advisors LLC boosted its stake in Alibaba Group by 35.2% during the second quarter. NewEdge Advisors LLC now owns 221,809 shares of the specialty retailer’s stock worth $21,289,000 after buying an additional 57,725 shares during the period. Finally, Baird Financial Group Inc. increased its position in shares of Alibaba Group by 6.7% during the second quarter. Baird Financial Group Inc. now owns 754,749 shares of the specialty retailer’s stock valued at $72,441,000 after acquiring an additional 47,358 shares during the last quarter. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

About Alibaba Group

Alibaba Group Holding Limited is a global technology and commerce company founded in 1999 by Jack Ma and a group of co-founders. Headquartered in Hangzhou, China, the company operates a broad ecosystem of businesses serving consumers, merchants, brands and enterprises.

Its core businesses include online and mobile commerce platforms such as Taobao and Tmall in China, as well as international marketplaces including AliExpress and Lazada. Alibaba also provides wholesale commerce, cross-border retail, logistics through Cainiao, local consumer services, digital media and entertainment, and other consumer-focused technology services.

Alibaba Cloud provides cloud computing, data storage, artificial intelligence and related technology solutions to businesses and organizations.