Investors Sell Alibaba Group (BABA) on Strength on Analyst Downgrade

Investors sold shares of Alibaba Group Holding Ltd (NYSE:BABA) on strength during trading hours on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock to $190.00. $622.06 million flowed into the stock on the tick-up and $666.62 million flowed out of the stock on the tick-down, for a money net flow of $44.56 million out of the stock. Of all companies tracked, Alibaba Group had the 0th highest net out-flow for the day. Alibaba Group traded up $2.80 for the day and closed at $147.44

Several other brokerages also recently weighed in on BABA. MKM Partners cut their price target on shares of Alibaba Group to $270.00 and set a “buy” rating on the stock in a report on Wednesday, September 12th. Zacks Investment Research upgraded shares of Alibaba Group from a “strong sell” rating to a “hold” rating in a report on Monday, October 8th. HSBC initiated coverage on shares of Alibaba Group in a report on Wednesday, September 12th. They issued a “buy” rating on the stock. Deutsche Bank set a $189.00 price target on shares of Alibaba Group and gave the stock a “buy” rating in a report on Wednesday, October 10th. Finally, Goldman Sachs Group increased their price target on shares of Alibaba Group from $241.00 to $247.00 and gave the stock a “buy” rating in a report on Wednesday, October 3rd. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, twenty-five have given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $216.02.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Columbia Asset Management acquired a new stake in shares of Alibaba Group during the 3rd quarter worth approximately $160,000. Compton Capital Management Inc. RI grew its stake in shares of Alibaba Group by 3.8% during the 3rd quarter. Compton Capital Management Inc. RI now owns 13,690 shares of the specialty retailer’s stock worth $2,256,000 after purchasing an additional 495 shares during the period. Fagan Associates Inc. grew its stake in shares of Alibaba Group by 4.6% during the 3rd quarter. Fagan Associates Inc. now owns 25,455 shares of the specialty retailer’s stock worth $4,194,000 after purchasing an additional 1,125 shares during the period. Newport Asia LLC lifted its position in shares of Alibaba Group by 3.3% during the 3rd quarter. Newport Asia LLC now owns 1,143,800 shares of the specialty retailer’s stock valued at $188,452,000 after buying an additional 36,500 shares in the last quarter. Finally, Gamble Jones Investment Counsel lifted its position in shares of Alibaba Group by 48.0% during the 3rd quarter. Gamble Jones Investment Counsel now owns 66,998 shares of the specialty retailer’s stock valued at $11,039,000 after buying an additional 21,741 shares in the last quarter. 38.76% of the stock is currently owned by institutional investors and hedge funds.

The stock has a market cap of $378.00 billion, a PE ratio of 36.59, a P/E/G ratio of 1.15 and a beta of 2.35. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.44 and a quick ratio of 1.44.

Alibaba Group (NYSE:BABA) last announced its earnings results on Friday, November 2nd. The specialty retailer reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.82 by $0.19. Alibaba Group had a return on equity of 13.15% and a net margin of 19.33%. The firm had revenue of $12.40 billion for the quarter, compared to analyst estimates of $12.51 billion. During the same quarter last year, the firm posted $1.29 EPS. The business’s revenue was up 49.6% on a year-over-year basis. As a group, analysts expect that Alibaba Group Holding Ltd will post 3.72 earnings per share for the current year.

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Alibaba Group Company Profile (NYSE:BABA)

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others.

Further Reading: Reverse Stock Split

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