Alibaba Group (NYSE:BABA) Stock Price Down 1.2% – Here’s Why

Alibaba Group Holding Limited (NYSE:BABA) was down 1.2% during trading on Wednesday. The stock traded as low as $101.05 and last traded at $101.4590. Approximately 8,473,657 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 11,385,339 shares. The stock had previously closed at $102.72.

Key Stories Impacting Alibaba Group

Here are a few of the latest stories about BABA:

• Positive Sentiment: DZ Bank upgraded Alibaba from “hold” to “buy” and set a $140 price target, citing potential upside from current levels. DZ Bank rating update
• Neutral Sentiment: Alibaba is pursuing a Hong Kong listing for its T-Head semiconductor unit. A separate listing could highlight the value of its chip business, though the company’s AI ambitions remain exposed to access to advanced computing hardware. Alibaba T-Head listing report
• Negative Sentiment: The main near-term concern is that U.S. officials may restrict Chinese firms from remotely using advanced AI chips in overseas data centers. Reports linking Alibaba’s cloud operations to Singapore-based Megaspeed have heightened scrutiny and raised concerns about cloud growth and AI infrastructure. The possibility of tighter curbs has also pressured other Chinese AI stocks. Report on potential U.S. chip rules

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on BABA shares. Jefferies Financial Group reaffirmed a “buy” rating and issued a $192.00 price objective on shares of Alibaba Group in a research note on Thursday, October 8th. JPMorgan Chase & Co. lowered their price target on Alibaba Group from $210.00 to $200.00 and set an “overweight” rating for the company in a research report on Monday, October 12th. Citigroup upped their target price on Alibaba Group from $190.00 to $193.00 and gave the company a “buy” rating in a research note on Thursday, October 8th. Susquehanna raised their price target on Alibaba Group from $185.00 to $190.00 and gave the company a “positive” rating in a research note on Friday, August 28th. Finally, DZ Bank upgraded Alibaba Group from a “hold” rating to a “buy” rating and set a $140.00 price target on the stock in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Alibaba Group presently has a consensus rating of “Moderate Buy” and an average price target of $183.53.

Alibaba Group Price Performance

The stock has a market capitalization of $234.59 billion, a price-to-earnings ratio of 22.83, a PEG ratio of 1.29 and a beta of 0.44. The stock has a 50-day moving average price of $107.21 and a 200 day moving average price of $123.61. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.21.

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 analysts’ consensus estimates of $1.94 by ($0.68). The business had revenue of $39.64 billion for the quarter, compared to analyst estimates of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%. The business’s revenue was up 8.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $14.75 earnings per share. As a group, equities research analysts expect that Alibaba Group Holding Limited will post 5.89 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Yongming Wu bought 350,000 shares of the stock in a transaction on Monday, August 24th. The shares were bought at an average cost of $14.24 per share, for a total transaction of $4,984,000.00. Following the purchase, the chief executive officer owned 1,364,418 shares of the company’s stock, valued at $19,429,312.32. This trade represents a 34.50% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Fang Jiang sold 885,272 shares of the business’s stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $13.55, for a total transaction of $11,995,435.60. Following the completion of the transaction, the insider directly owned 4,679,097 shares in the company, valued at $63,401,764.35. This represents a 15.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 999,971 shares of company stock worth $13,563,304. Corporate insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Alibaba Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BABA. AMF Tjanstepension AB raised its position in shares of Alibaba Group by 0.3% during the 3rd quarter. AMF Tjanstepension AB now owns 2,167,406 shares of the specialty retailer’s stock worth $233,083,000 after purchasing an additional 6,815 shares during the last quarter. Baird Financial Group Inc. raised its stake in Alibaba Group by 6.7% in the 2nd quarter. Baird Financial Group Inc. now owns 754,749 shares of the specialty retailer’s stock valued at $72,441,000 after purchasing an additional 47,358 shares during the last quarter. Sei Investments Co. lifted its holdings in Alibaba Group by 63.5% in the 1st quarter. Sei Investments Co. now owns 573,409 shares of the specialty retailer’s stock valued at $71,940,000 after purchasing an additional 222,666 shares in the last quarter. Nykredit A S acquired a new stake in shares of Alibaba Group during the 2nd quarter worth about $50,417,000. Finally, Pale Fire Capital SE acquired a new stake in shares of Alibaba Group during the 2nd quarter worth about $49,810,000. Institutional investors and hedge funds own 13.47% of the company’s stock.

About Alibaba Group

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates digital platforms that connect consumers, merchants, businesses and other participants in commerce. Its businesses include China-focused marketplaces such as Taobao and Tmall, international platforms including AliExpress and Alibaba.com, and Alibaba Cloud, which provides cloud computing and related technology services. The group also has operations in areas such as logistics, local services and digital media.