Alibaba Group (NYSE:BABA) Shares Down 3.8% – Here’s Why

Alibaba Group Holding Limited (NYSE:BABA) dropped 3.8% during mid-day trading on Wednesday . The stock traded as low as $107.60 and last traded at $108.06. Approximately 7,131,212 shares were traded during trading, a decline of 65% from the average daily volume of 20,533,442 shares. The stock had previously closed at $112.28.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on BABA. StockNews.com raised Alibaba Group from a “hold” rating to a “buy” rating in a report on Thursday, April 3rd. Robert W. Baird upped their price target on shares of Alibaba Group from $110.00 to $125.00 and gave the company an “outperform” rating in a research report on Wednesday, February 19th. Citigroup lowered their price objective on Alibaba Group from $170.00 to $169.00 and set a “buy” rating for the company in a research report on Tuesday, April 8th. Mizuho increased their price target on Alibaba Group from $140.00 to $170.00 and gave the stock an “outperform” rating in a report on Friday, March 28th. Finally, Barclays increased their price target on Alibaba Group from $130.00 to $180.00 and gave the stock an “overweight” rating in a report on Friday, February 21st. Fifteen equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, Alibaba Group presently has an average rating of “Buy” and an average price target of $150.36.

Alibaba Group Trading Down 5.6 %

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a 50-day moving average price of $127.13 and a two-hundred day moving average price of $104.74. The stock has a market capitalization of $251.85 billion, a P/E ratio of 15.32, a price-to-earnings-growth ratio of 0.61 and a beta of 0.24.

Alibaba Group (NYSE:BABA) last released its earnings results on Thursday, February 20th. The specialty retailer reported $2.77 EPS for the quarter, missing analysts’ consensus estimates of $2.84 by ($0.07). The firm had revenue of $38.38 billion during the quarter, compared to analysts’ expectations of $38.19 billion. Alibaba Group had a net margin of 12.29% and a return on equity of 12.89%. On average, research analysts forecast that Alibaba Group Holding Limited will post 7.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Appaloosa LP lifted its position in Alibaba Group by 18.4% in the 4th quarter. Appaloosa LP now owns 11,843,158 shares of the specialty retailer’s stock valued at $1,004,181,000 after acquiring an additional 1,843,158 shares in the last quarter. Norges Bank purchased a new stake in shares of Alibaba Group during the fourth quarter valued at $585,479,000. Bank of America Corp DE boosted its position in shares of Alibaba Group by 7.0% during the fourth quarter. Bank of America Corp DE now owns 6,676,773 shares of the specialty retailer’s stock valued at $566,124,000 after buying an additional 438,537 shares during the last quarter. Fisher Asset Management LLC raised its position in Alibaba Group by 1.6% in the 4th quarter. Fisher Asset Management LLC now owns 5,093,828 shares of the specialty retailer’s stock worth $431,906,000 after buying an additional 78,757 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Alibaba Group by 19.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,610,035 shares of the specialty retailer’s stock valued at $390,885,000 after acquiring an additional 752,275 shares during the period. Hedge funds and other institutional investors own 13.47% of the company’s stock.

About Alibaba Group

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.