Alibaba Group (NYSE:BABA) Shares Down 2.2% – Should You Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s stock price dropped 2.2% during mid-day trading on Friday . The company traded as low as $130.14 and last traded at $133.51. Approximately 12,265,201 shares changed hands during mid-day trading, a decline of 61% from the average daily volume of 31,255,494 shares. The stock had previously closed at $136.55.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Benchmark upped their target price on Alibaba Group from $118.00 to $190.00 and gave the stock a “buy” rating in a research note on Friday, February 21st. StockNews.com upgraded Alibaba Group from a “hold” rating to a “buy” rating in a research report on Friday, February 21st. JPMorgan Chase & Co. increased their target price on shares of Alibaba Group from $125.00 to $170.00 and gave the stock an “overweight” rating in a report on Friday, February 21st. Morgan Stanley raised shares of Alibaba Group from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $100.00 to $180.00 in a report on Monday, February 24th. Finally, Sanford C. Bernstein raised shares of Alibaba Group from a “market perform” rating to an “outperform” rating and increased their price objective for the company from $104.00 to $165.00 in a research note on Tuesday, February 25th. Fifteen equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $144.07.

Alibaba Group Stock Down 3.0 %

The firm has a market capitalization of $314.70 billion, a price-to-earnings ratio of 19.14, a P/E/G ratio of 0.61 and a beta of 0.31. The stock has a fifty day moving average of $100.36 and a two-hundred day moving average of $94.88. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.48 and a quick ratio of 1.48.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings data on Thursday, February 20th. The specialty retailer reported $2.77 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.84 by ($0.07). Alibaba Group had a return on equity of 12.89% and a net margin of 12.29%. The company had revenue of $38.38 billion for the quarter, compared to the consensus estimate of $38.19 billion. Sell-side analysts anticipate that Alibaba Group Holding Limited will post 7.86 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Mutual Advisors LLC boosted its position in Alibaba Group by 125.3% during the third quarter. Mutual Advisors LLC now owns 12,970 shares of the specialty retailer’s stock valued at $1,376,000 after acquiring an additional 7,214 shares during the last quarter. First Trust Direct Indexing L.P. lifted its stake in shares of Alibaba Group by 3.0% in the 3rd quarter. First Trust Direct Indexing L.P. now owns 4,857 shares of the specialty retailer’s stock valued at $515,000 after purchasing an additional 143 shares during the period. Pinnacle Associates Ltd. boosted its position in shares of Alibaba Group by 4.4% during the 3rd quarter. Pinnacle Associates Ltd. now owns 4,878 shares of the specialty retailer’s stock valued at $518,000 after purchasing an additional 207 shares in the last quarter. Focus Financial Network Inc. grew its stake in Alibaba Group by 7.2% during the third quarter. Focus Financial Network Inc. now owns 7,544 shares of the specialty retailer’s stock worth $801,000 after purchasing an additional 507 shares during the period. Finally, Gladstone Institutional Advisory LLC increased its holdings in Alibaba Group by 6.0% in the third quarter. Gladstone Institutional Advisory LLC now owns 9,308 shares of the specialty retailer’s stock worth $988,000 after purchasing an additional 526 shares in the last quarter. Institutional investors and hedge funds own 13.47% of the company’s stock.

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.