Alibaba Group (NYSE:BABA) Stock Price Down 3.9% – Time to Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s stock price dropped 3.9% on Wednesday. The company 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 session volume of 11,483,182 shares. The stock had previously closed at $108.61.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on BABA. Susquehanna lifted their price target on shares of Alibaba Group from $185.00 to $190.00 and gave the company a “positive” rating in a research report on Friday, August 28th. Robert W. Baird dropped their price objective on shares of Alibaba Group from $164.00 to $160.00 and set an “outperform” rating on the stock in a research note on Friday, August 21st. Sanford C. Bernstein restated an “outperform” rating and issued a $165.00 price objective on shares of Alibaba Group in a report on Monday, September 7th. Weiss Ratings raised shares of Alibaba Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, October 2nd. Finally, HSBC set a $170.00 target price on shares of Alibaba Group in a report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $182.89.

Alibaba Group Stock Performance

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 has a 50 day moving average price of $113.49 and a 200 day moving average price of $118.81. The stock has a market capitalization of $259.60 billion, a PE ratio of 25.27, a PEG ratio of 1.42 and a beta of 0.47.

Alibaba Group (NYSE:BABA) last posted 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). Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The company had revenue of $39.64 billion during the quarter, compared to analysts’ expectations of $39.52 billion. During the same period in the prior year, the firm earned $14.75 EPS. Alibaba Group’s revenue for the quarter was up 8.6% compared to the same quarter last year. As a group, equities research analysts expect that Alibaba Group Holding Limited will post 5.74 earnings per share for the current year.

Insider Buying and Selling

In other Alibaba Group news, General Counsel Siying Yu sold 6,764 shares of the stock in a transaction on Friday, September 25th. The stock was sold at an average price of $13.58, for a total transaction of $91,855.12. Following the sale, the general counsel directly owned 613,965 shares in the company, valued at approximately $8,337,644.70. This trade represents a 1.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 885,272 shares of Alibaba Group stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $13.55, for a total value of $11,995,435.60. Following the completion of the sale, the insider directly owned 4,679,097 shares of the company’s stock, valued at approximately $63,401,764.35. The trade was a 15.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 999,971 shares of company stock worth $13,563,304 over the last 90 days. 12.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Aureus Asset Management LLC boosted its holdings in shares of 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 acquiring an additional 7,829 shares during the last quarter. IPG Investment Advisors LLC grew its stake in shares of Alibaba Group by 97.8% in the second quarter. IPG Investment Advisors LLC now owns 17,019 shares of the specialty retailer’s stock worth $1,647,000 after acquiring an additional 8,415 shares during the period. Teachers Retirement System of The State of Kentucky raised its holdings in shares of Alibaba Group by 24.5% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer’s stock valued at $32,567,000 after purchasing an additional 51,000 shares during the last quarter. Turn8 Private Wealth Inc. raised its holdings in shares of Alibaba Group by 70.3% during the first quarter. Turn8 Private Wealth Inc. now owns 37,324 shares of the specialty retailer’s stock valued at $4,683,000 after purchasing an additional 15,404 shares during the last quarter. Finally, Jennison Associates LLC lifted its position in Alibaba Group by 54.2% during the first quarter. Jennison Associates LLC now owns 83,627 shares of the specialty retailer’s stock valued at $10,492,000 after purchasing an additional 29,392 shares during the period. 13.47% of the stock is owned by institutional investors.

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.