Alibaba Group (NYSE:BABA) Stock Falls 3.8% – Here’s What Happened

Shares of Alibaba Group Holding Limited (NYSE:BABA) were down 3.8% during trading on Monday. The stock traded as low as $105.13 and last traded at $105.2790. Approximately 10,984,345 shares were traded during trading, a decline of 4% from the average daily volume of 11,410,288 shares. The stock had previously closed at $109.45.

Wall Street Analysts Forecast Growth

BABA has been the subject of a number of research reports. Citigroup raised 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. JPMorgan Chase & Co. reduced their price target on shares of Alibaba Group from $210.00 to $200.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. Weiss Ratings upgraded shares of Alibaba Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, October 2nd. Wells Fargo & Company set a $190.00 price objective on shares of Alibaba Group in a report on Monday. Finally, Barclays raised their price objective on shares of Alibaba Group from $195.00 to $200.00 and gave the company an “overweight” rating in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $183.26.

Alibaba Group Stock Down 3.8%

The firm’s 50-day moving average is $108.28 and its two-hundred day moving average is $125.04. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.36 and a current ratio of 1.36. The stock has a market cap of $261.91 billion, a P/E ratio of 25.49, a PEG ratio of 1.42 and a beta of 0.44.

Alibaba Group (NYSE:BABA) last announced its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.94 by ($0.68). The firm had revenue of $39.64 billion during the quarter, compared to the consensus estimate of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. The firm’s quarterly revenue was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $14.75 earnings per share. On average, equities research analysts anticipate that Alibaba Group Holding Limited will post 5.76 earnings per share for the current year.

Insider Activity at Alibaba Group

In other news, insider Fang Jiang sold 885,272 shares of the company’s stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $13.55, for a total transaction of $11,995,435.60. Following the transaction, the insider owned 4,679,097 shares of the company’s stock, valued at $63,401,764.35. This represents a 15.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Hong Xu sold 103,046 shares of the firm’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $13.68, for a total value of $1,409,669.28. Following the completion of the transaction, the chief financial officer owned 406,450 shares in the company, valued at approximately $5,560,236. This represents a 20.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 999,971 shares of company stock valued at $13,563,304 over the last quarter. 12.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. AMF Tjanstepension AB lifted its holdings in Alibaba Group by 4.1% in the first quarter. AMF Tjanstepension AB now owns 2,206,634 shares of the specialty retailer’s stock valued at $276,844,000 after buying an additional 86,613 shares during the period. Baird Financial Group Inc. boosted its stake in Alibaba Group by 6.7% in the second quarter. Baird Financial Group Inc. now owns 754,749 shares of the specialty retailer’s stock valued at $72,441,000 after acquiring an additional 47,358 shares during the last quarter. Sei Investments Co. grew its holdings in Alibaba Group by 63.5% during the 1st quarter. Sei Investments Co. now owns 573,409 shares of the specialty retailer’s stock worth $71,940,000 after acquiring an additional 222,666 shares during the period. Sumitomo Mitsui Trust Group Inc. grew its holdings in Alibaba Group by 19.3% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 534,794 shares of the specialty retailer’s stock worth $67,095,000 after acquiring an additional 86,484 shares during the period. Finally, Amova Asset Management Americas Inc. raised its position in shares of Alibaba Group by 18.0% during the 1st quarter. Amova Asset Management Americas Inc. now owns 482,630 shares of the specialty retailer’s stock valued at $60,580,000 after acquiring an additional 73,607 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors and hedge funds.

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.

Alibaba serves customers and businesses in China and across international markets.