Potomac Capital Management Inc. Makes New Investment in Alibaba Group Holding Limited $BABA

Potomac Capital Management Inc. bought a new position in shares of Alibaba Group Holding Limited (NYSE:BABA) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund bought 11,000 shares of the specialty retailer’s stock, valued at approximately $1,612,000. Alibaba Group comprises approximately 1.3% of Potomac Capital Management Inc.’s investment portfolio, making the stock its 22nd biggest position.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. ARK Investment Management LLC acquired a new position in shares of Alibaba Group during the 3rd quarter valued at about $37,565,000. Great Hill Capital LLC acquired a new position in shares of Alibaba Group during the 3rd quarter valued at about $2,207,000. Jennison Associates LLC boosted its position in shares of Alibaba Group by 11.9% during the 4th quarter. Jennison Associates LLC now owns 54,235 shares of the specialty retailer’s stock valued at $7,950,000 after acquiring an additional 5,760 shares during the last quarter. Thornburg Investment Management Inc. boosted its position in shares of Alibaba Group by 14.3% during the 3rd quarter. Thornburg Investment Management Inc. now owns 553,384 shares of the specialty retailer’s stock valued at $98,906,000 after acquiring an additional 69,232 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Alibaba Group during the fourth quarter worth $21,266,000. Institutional investors and hedge funds own 13.47% of the company’s stock.

Key Stories Impacting Alibaba Group

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

• Negative Sentiment: The Pentagon added Alibaba to its Chinese military-linked list, raising geopolitical risk and potentially restricting access to U.S. defense contracts. Pentagon Adds Alibaba, Baidu, BYD and Nio to Chinese Military-Linked List
• Negative Sentiment: Investor focus remains on Alibaba’s aggressive AI spending, which some reports say is a larger drag on the stock than the Pentagon action. Alibaba Stock Has Bigger Problems Than the Pentagon’s China List
• Neutral Sentiment: Alibaba rejected the military-company label and said it sees no business impact from the designation. Alibaba Rejects U.S. Military Company Label, Sees No Business Impact
• Positive Sentiment: Alibaba continues to build out its AI business, including a new Token Foundry unit that could support longer-term growth. Alibaba CEO Takes Direct Control of New AI Business Unit

Alibaba Group Stock Down 0.3%

Shares of BABA opened at $119.68 on Wednesday. The stock has a market capitalization of $287.12 billion, a PE ratio of 19.65, a P/E/G ratio of 2.06 and a beta of 0.47. Alibaba Group Holding Limited has a 1 year low of $103.71 and a 1 year high of $192.67. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.28 and a current ratio of 1.28. The company’s 50-day simple moving average is $130.68 and its 200-day simple moving average is $144.70.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The business had revenue of $35.30 billion for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. Analysts forecast that Alibaba Group Holding Limited will post 6.75 earnings per share for the current fiscal year.

Alibaba Group Announces Dividend

The firm also recently declared an annual dividend, which will be paid on Monday, July 13th. Stockholders of record on Thursday, June 11th will be given a dividend of $1.05 per share. This represents a dividend yield of 72.0%. The ex-dividend date of this dividend is Thursday, June 11th. Alibaba Group’s dividend payout ratio is currently 15.60%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on BABA shares. Nomura raised their target price on Alibaba Group from $200.00 to $207.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. DZ Bank lowered shares of Alibaba Group from a “buy” rating to a “hold” rating and set a $135.00 price objective on the stock. in a report on Friday, March 20th. JPMorgan Chase & Co. upped their price objective on shares of Alibaba Group from $200.00 to $205.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Susquehanna upped their price objective on shares of Alibaba Group from $170.00 to $185.00 and gave the stock a “positive” rating in a report on Friday, May 15th. Finally, Zacks Research upgraded shares of Alibaba Group from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Alibaba Group currently has an average rating of “Moderate Buy” and an average price target of $188.76.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.