Alibaba Group (NYSE:BABA) Downgraded by Zacks Investment Research to Strong Sell

Zacks Investment Research downgraded shares of Alibaba Group (NYSE:BABA) from a hold rating to a strong sell rating in a research note published on Wednesday, Zacks.com reports. Zacks Investment Research currently has $140.00 price objective on the specialty retailer’s stock.

According to Zacks, “Alibaba’s fiscal second quarter results were driven by solid momentum across its Core Commerce segment. Strong China and International Commerce businesses remained positive. Further, its robust New Retail strategy which is gaining strong traction in the market remains a major positive. This is aiding growth in Tmall Import, Freshippo and Intime Department Stores. Well-performing Cainiao logistics services are contributing well. Additionally, the company’s strengthening cloud business on the back of its expanding customer base continues to drive its performance. However, rising competition from domestic as well as foreign e-commerce companies poses a serious risk. Additionally, the regulatory concerns and higher costs associated with new initiatives remain major headwinds. The stock has underperformed its industry on a year-to-date basis.”

Several other analysts also recently issued reports on the company. KeyCorp dropped their price target on Alibaba Group from $250.00 to $200.00 and set an overweight rating on the stock in a research note on Friday, October 1st. Truist Securities dropped their price target on Alibaba Group from $230.00 to $200.00 and set a buy rating on the stock in a research note on Friday, November 19th. KGI Securities assumed coverage on Alibaba Group in a report on Monday, September 6th. They issued a neutral rating for the company. Credit Suisse Group decreased their price objective on Alibaba Group from $192.00 to $182.00 and set an outperform rating for the company in a report on Friday, November 19th. Finally, Needham & Company LLC decreased their price objective on Alibaba Group from $330.00 to $230.00 and set a buy rating for the company in a report on Tuesday. Three research analysts have rated the stock with a sell rating, three have given a hold rating and twenty-six have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of Buy and an average price target of $247.11.

Shares of Alibaba Group stock opened at $136.52 on Wednesday. The company has a market capitalization of $370.09 billion, a PE ratio of 19.59, a PEG ratio of 1.20 and a beta of 0.86. Alibaba Group has a 12 month low of $131.22 and a 12 month high of $279.33. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.12. The stock’s fifty day simple moving average is $158.79 and its 200 day simple moving average is $185.28.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings data on Thursday, November 18th. The specialty retailer reported $11.20 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.46 by $9.74. Alibaba Group had a return on equity of 12.39% and a net margin of 15.27%. The business had revenue of $200.69 billion for the quarter, compared to the consensus estimate of $204.97 billion. During the same quarter last year, the business posted $1.32 EPS. The firm’s revenue was up 29.4% compared to the same quarter last year. Analysts predict that Alibaba Group will post 7.52 EPS for the current fiscal year.

A number of hedge funds have recently modified their holdings of BABA. Mcdonald Partners LLC raised its position in shares of Alibaba Group by 25.7% in the third quarter. Mcdonald Partners LLC now owns 8,651 shares of the specialty retailer’s stock valued at $1,281,000 after buying an additional 1,770 shares in the last quarter. Liontrust Investment Partners LLP acquired a new stake in shares of Alibaba Group in the third quarter valued at approximately $7,622,000. Consolidated Planning Corp acquired a new stake in shares of Alibaba Group in the third quarter valued at approximately $30,000. Jeppson Wealth Management LLC raised its position in shares of Alibaba Group by 19.5% in the third quarter. Jeppson Wealth Management LLC now owns 8,296 shares of the specialty retailer’s stock valued at $1,228,000 after buying an additional 1,355 shares in the last quarter. Finally, swisspartners Advisors Ltd raised its position in shares of Alibaba Group by 58.2% in the third quarter. swisspartners Advisors Ltd now owns 37,483 shares of the specialty retailer’s stock valued at $5,550,000 after buying an additional 13,786 shares in the last quarter. Hedge funds and other institutional investors own 23.71% of the company’s stock.

Alibaba Group Company Profile

Alibaba Group Holding Ltd. engages in providing online and mobile marketplaces in retail and wholesale trade. It operates through the following business segments: Core Commerce; Cloud Computing; Digital Media & Entertainment; and Innovation Initiatives and Others. The Core Commerce segment comprises of platforms operating in retail and wholesale.

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