Alibaba Group (NYSE:BABA) Shares Down 2.1% – Here’s Why
by Sarita Garza · The Markets DailyAlibaba Group Holding Limited (NYSE:BABA – Get Free Report)’s share price fell 2.1% during mid-day trading on Thursday . The stock traded as low as $113.10 and last traded at $114.0920. 8,470,041 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 12,190,224 shares. The stock had previously closed at $116.56.
Trending Headlines about Alibaba Group
Here are the key news stories impacting Alibaba Group this week:
- Positive Sentiment: Alibaba-backed AGTech agreed to help build an electronic trading, clearing, and settlement platform for the Hong Kong Gold Exchange, highlighting continued influence through its fintech investments. Article Link
- Positive Sentiment: Alibaba’s AI progress is drawing attention after reports that its Qwen large language model will power Apple Intelligence features in China, reinforcing the company’s AI commercialization story. Article Link
- Positive Sentiment: Analysts and commentators said Alibaba’s AI investments deserve credit, suggesting the company may be gaining momentum in a key growth area. Article Link
- Neutral Sentiment: Alibaba set an August record date for its virtual AGM and ADS voting, a routine corporate action with limited immediate operating impact. Article Link
- Negative Sentiment: Rosen Law Firm said it is investigating possible securities claims against Alibaba, alleging the company may have provided misleading business information to investors, which increases legal overhang. Article Link
- Negative Sentiment: Pomerantz LLP also launched an investor claims investigation into Alibaba, adding to litigation concerns and potentially weighing on sentiment. Article Link
Analyst Upgrades and Downgrades
A number of equities research analysts have weighed in on the stock. Morgan Stanley boosted their target price on shares of Alibaba Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. HSBC set a $170.00 price target on shares of Alibaba Group in a research note on Thursday, July 9th. JPMorgan Chase & Co. lifted their price target 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. Mizuho increased their price objective on Alibaba Group from $190.00 to $195.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Finally, Barclays increased their price objective on Alibaba Group from $186.00 to $195.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have issued 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 target price of $186.90.
Read Our Latest Stock Report on Alibaba Group
Alibaba Group Price Performance
The firm has a market cap of $273.49 billion, a price-to-earnings ratio of 18.73, a P/E/G ratio of 2.17 and a beta of 0.51. The business’s 50-day simple moving average is $115.40 and its two-hundred day simple moving average is $134.52. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21.
Alibaba Group (NYSE:BABA – Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The firm had revenue of $35.30 billion during the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. As a group, research analysts expect that Alibaba Group Holding Limited will post 6.28 EPS for the current fiscal year.
Alibaba Group Dividend Announcement
The company also recently announced an annual dividend, which was paid on Monday, July 13th. Investors of record on Thursday, June 11th were paid a dividend of $1.05 per share. This represents a yield of 93.0%. The ex-dividend date of this dividend was Thursday, June 11th. Alibaba Group’s dividend payout ratio (DPR) is currently 16.91%.
Insiders Place Their Bets
In other Alibaba Group news, CFO Hong Xu sold 175,054 shares of the stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.15, for a total transaction of $2,126,906.10. Following the completion of the sale, the chief financial officer directly owned 280,496 shares in the company, valued at approximately $3,408,026.40. This trade represents a 38.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 4,898 shares of Alibaba Group stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $12.09, for a total value of $59,216.82. Following the completion of the transaction, the insider directly owned 5,559,511 shares of the company’s stock, valued at approximately $67,214,487.99. This trade represents a 0.09% decrease in their ownership of the stock. 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 920,303 shares of company stock valued at $70,796,370 over the last quarter. Company insiders own 12.50% of the company’s stock.
Institutional Investors Weigh In On Alibaba Group
Several large investors have recently added to or reduced their stakes in the business. Jennison Associates LLC lifted its holdings in shares of Alibaba Group by 11.9% in the fourth quarter. Jennison Associates LLC now owns 54,235 shares of the specialty retailer’s stock valued at $7,950,000 after purchasing an additional 5,760 shares in the last quarter. Teachers Retirement System of The State of Kentucky boosted its holdings in shares of Alibaba Group by 24.5% in the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer’s stock worth $32,567,000 after buying an additional 51,000 shares during the last quarter. Thornburg Investment Management Inc. boosted its stake in Alibaba Group by 5.5% in the fourth quarter. Thornburg Investment Management Inc. now owns 584,028 shares of the specialty retailer’s stock valued at $85,607,000 after acquiring an additional 30,644 shares during the last quarter. Eurizon Capital SGR S.p.A. purchased a new position in Alibaba Group in the fourth quarter valued at approximately $21,266,000. Finally, Nations Financial Group Inc. IA ADV lifted its position in shares of Alibaba Group by 61.9% during the 4th quarter. Nations Financial Group Inc. IA ADV now owns 50,123 shares of the specialty retailer’s stock valued at $7,347,000 after buying an additional 19,169 shares during the last quarter. Institutional investors and hedge funds own 13.47% of the company’s stock.
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.