Alibaba Group (NYSE:BABA) Shares Down 10.2% – Should You Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s stock price fell 10.2% during mid-day trading on Monday . The company traded as low as $128.44 and last traded at $129.05. 42,685,960 shares traded hands during trading, an increase of 40% from the average session volume of 30,496,668 shares. The stock had previously closed at $143.75.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on BABA shares. StockNews.com upgraded Alibaba Group from a “hold” rating to a “buy” rating in a report on Friday. Bank of America upped their target price on shares of Alibaba Group from $117.00 to $150.00 and gave the company a “buy” rating in a research note on Friday. Mizuho increased their target price on Alibaba Group from $92.00 to $113.00 and gave the stock an “outperform” rating in a report on Tuesday, November 12th. Barclays increased their price objective on shares of Alibaba Group from $130.00 to $180.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Robert W. Baird raised their price objective on shares of Alibaba Group from $110.00 to $125.00 and gave the company an “outperform” rating in a research note on Wednesday, February 19th. One research analyst has rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $138.36.

Alibaba Group Stock Performance

The firm’s 50-day simple moving average is $95.43 and its 200-day simple moving average is $93.09. The company has a market capitalization of $306.88 billion, a PE ratio of 18.67, a PEG ratio of 0.57 and a beta of 0.31. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 0.16.

Alibaba Group (NYSE:BABA) last issued its earnings results on Thursday, February 20th. The specialty retailer reported $2.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.84 by ($0.07). Alibaba Group had a return on equity of 12.90% and a net margin of 12.29%. The business had revenue of $38.38 billion for the quarter, compared to analysts’ expectations of $38.19 billion. On average, research analysts predict that Alibaba Group Holding Limited will post 7.86 earnings per share for the current year.

Institutional Trading of Alibaba Group

Several hedge funds have recently modified their holdings of BABA. Concord Wealth Partners lifted its stake in Alibaba Group by 155.0% during the third quarter. Concord Wealth Partners now owns 255 shares of the specialty retailer’s stock worth $27,000 after purchasing an additional 155 shares during the last quarter. Highline Wealth Partners LLC purchased a new position in Alibaba Group in the 3rd quarter valued at $36,000. Decker Retirement Planning Inc. acquired a new stake in Alibaba Group in the fourth quarter valued at about $31,000. Sierra Ocean LLC acquired a new position in Alibaba Group during the fourth quarter worth $32,000. Finally, Assetmark Inc. grew its holdings in shares of Alibaba Group by 225.4% in the 3rd quarter. Assetmark Inc. now owns 397 shares of the specialty retailer’s stock worth $42,000 after acquiring an additional 275 shares during the period. 13.47% of the stock is currently owned by institutional investors and hedge funds.

Alibaba Group Company Profile

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others.