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

Alibaba Group Holding Limited (NYSE:BABA)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $143.20, but opened at $137.18. Alibaba Group shares last traded at $138.83, with a volume of 6,653,439 shares.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on BABA shares. Bank of America increased their target price on shares of Alibaba Group from $117.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, February 21st. Benchmark increased their price target on Alibaba Group from $118.00 to $190.00 and gave the stock a “buy” rating in a research report on Friday, February 21st. JPMorgan Chase & Co. lifted their price objective on Alibaba Group from $125.00 to $170.00 and gave the company an “overweight” rating in a report on Friday, February 21st. Morgan Stanley raised Alibaba Group from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $100.00 to $180.00 in a report on Monday, February 24th. Finally, Arete Research raised Alibaba Group to a “strong-buy” rating in a research note on Friday, February 28th. Fifteen analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Alibaba Group currently has a consensus rating of “Buy” and a consensus price target of $144.07.

Alibaba Group Price Performance

The business’s 50-day simple moving average is $114.33 and its two-hundred day simple moving average is $100.04. The stock has a market cap of $325.14 billion, a price-to-earnings ratio of 19.76, a price-to-earnings-growth ratio of 0.61 and a beta of 0.27. 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 for the quarter, missing analysts’ consensus estimates of $2.84 by ($0.07). The firm had revenue of $38.38 billion for the quarter, compared to the consensus estimate of $38.19 billion. Alibaba Group had a return on equity of 12.89% and a net margin of 12.29%. Research analysts expect that Alibaba Group Holding Limited will post 7.86 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Sanders Capital LLC increased its position in Alibaba Group by 0.3% in the 3rd quarter. Sanders Capital LLC now owns 18,460,434 shares of the specialty retailer’s stock valued at $1,959,021,000 after acquiring an additional 60,667 shares during the period. Appaloosa LP grew its stake in shares of Alibaba Group by 18.4% in the fourth quarter. Appaloosa LP now owns 11,843,158 shares of the specialty retailer’s stock worth $1,004,181,000 after purchasing an additional 1,843,158 shares during the last quarter. Hhlr Advisors LTD. increased its holdings in Alibaba Group by 64.1% in the third quarter. Hhlr Advisors LTD. now owns 8,827,600 shares of the specialty retailer’s stock valued at $936,785,000 after purchasing an additional 3,448,152 shares during the period. Norges Bank acquired a new stake in shares of Alibaba Group in the fourth quarter valued at about $585,479,000. Finally, Bank of America Corp DE raised 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 worth $566,124,000 after acquiring an additional 438,537 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, 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.