Alibaba Group (NYSE:BABA) Insider Sells $66,343.73 in Stock

Alibaba Group Holding Limited (NYSE:BABA) insider Fang Jiang sold 4,889 shares of the business’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $13.57, for a total value of $66,343.73. Following the completion of the transaction, the insider directly owned 5,564,369 shares in the company, valued at $75,508,487.33. This represents a 0.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Alibaba Group Trading Down 0.8%

NYSE BABA opened at $108.89 on Tuesday. The stock has a market capitalization of $270.65 billion, a P/E ratio of 26.36, a P/E/G ratio of 1.47 and a beta of 0.51. The business has a 50 day simple moving average of $117.53 and a 200 day simple moving average of $121.06. 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 Holding Limited has a one year low of $91.99 and a one year high of $192.67.

Alibaba Group (NYSE:BABA) last issued 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 business 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%. Alibaba Group’s quarterly revenue was up 8.6% compared to the same quarter last year. During the same period last year, the firm posted $14.75 earnings per share. Research analysts expect that Alibaba Group Holding Limited will post 5.8 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages recently issued reports on BABA. Susquehanna increased their target price on shares of Alibaba Group from $185.00 to $190.00 and gave the stock a “positive” rating in a research note on Friday, August 28th. Nomura cut their price objective on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating on the stock in a research report on Thursday, June 25th. Robert W. Baird decreased their target price on Alibaba Group from $164.00 to $160.00 and set an “outperform” rating for the company in a research report on Friday, August 21st. Sanford C. Bernstein reiterated an “outperform” rating and issued a $165.00 price target on shares of Alibaba Group in a report on Monday, September 7th. Finally, HSBC set a $170.00 price objective on shares of Alibaba Group in a report on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $187.05.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Aureus Asset Management LLC grew its holdings in Alibaba Group by 511.0% during the 1st quarter. Aureus Asset Management LLC now owns 9,361 shares of the specialty retailer’s stock valued at $1,174,000 after buying an additional 7,829 shares in the last quarter. Teachers Retirement System of The State of Kentucky increased its holdings in Alibaba Group by 24.5% during the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer’s stock worth $32,567,000 after acquiring an additional 51,000 shares during the period. IPG Investment Advisors LLC lifted its stake 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 worth $1,647,000 after purchasing an additional 8,415 shares in the last quarter. Thornburg Investment Management Inc. boosted its holdings in Alibaba Group by 5.5% in the 4th quarter. Thornburg Investment Management Inc. now owns 584,028 shares of the specialty retailer’s stock valued at $85,607,000 after purchasing an additional 30,644 shares during the period. Finally, Wellspring Financial Advisors LLC purchased a new position in shares of Alibaba Group during the 4th quarter valued at $796,000. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: China may approve Alibaba’s purchases of Nvidia’s RTX PRO 5500 chips, which would expand access to advanced processors for Alibaba Cloud and its internal AI projects. Improved chip availability could support the company’s ability to compete in China’s AI-cloud market. Alibaba nears approval for RTX PRO 5500 chip purchases
• Positive Sentiment: Alibaba announced a technology and cloud partnership with the Brooklyn Nets, providing a new showcase for its cloud, data and sports-technology offerings. The deal is strategically positive but is unlikely to materially change near-term financial results. Brooklyn Nets technology and cloud partnership
• Positive Sentiment: Wall Street’s average brokerage recommendation remains bullish, offering some support for the view that BABA may be undervalued after its decline. However, analyst ratings can be optimistic and are not a substitute for improving earnings or cash flow. Wall Street views on Alibaba
• Neutral Sentiment: CFO Hong Xu, General Counsel Siying Yu and insider Fang Jiang sold shares to cover tax withholding tied to vested equity awards. The transactions reduce insider holdings, including a larger 20.23% reduction for Xu, but their stated tax-related purpose makes them a weaker bearish signal than discretionary sales. Alibaba insider transaction filing
• Negative Sentiment: Multiple law firms publicized an October 5 lead-plaintiff deadline for a securities-fraud class action alleging Alibaba failed to disclose issues related to its Chinese military-company designation and AI “distillation” activities. The notices add headline and potential legal-risk pressure, although they largely repeat the same lawsuit information rather than announce a new ruling or financial liability. Alibaba securities class action deadline
• Negative Sentiment: Alibaba’s planned 5-trillion-to-10-trillion-parameter AI model and new Zhenwu V900 chip reinforce its long-term ambitions, but investors are concerned about the substantial data-center, chip and power spending required before customers validate the economics. The company’s latest quarterly EPS also missed consensus, increasing scrutiny of profitability.

About Alibaba Group

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem connecting consumers, merchants, brands and businesses through online marketplaces and related services.

The company’s China commerce businesses include Taobao and Tmall, while its international commerce operations include Alibaba.com, AliExpress, Lazada and Trendyol. Alibaba also provides logistics services through Cainiao, consumer services through platforms such as Ele.me and Freshippo, and digital media and entertainment offerings.

Alibaba Cloud provides cloud computing, data management, artificial intelligence and other technology services to businesses and organizations.