Alibaba Group (NYSE:BABA) Stock Rating Raised to “Buy” at DZ Bank

Alibaba Group (NYSE:BABA) was upgraded by equities researchers at DZ Bank from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday, Marketbeat reports. The brokerage currently has a $140.00 target price on the specialty retailer’s stock. DZ Bank‘s price target would indicate a potential upside of 37.99% from the stock’s current price.

A number of other equities research analysts have also weighed in on BABA. Benchmark reiterated a “buy” rating on shares of Alibaba Group in a research note on Thursday, August 20th. Susquehanna raised their price target on Alibaba Group from $185.00 to $190.00 and gave the stock a “positive” rating in a research note on Friday, August 28th. Wells Fargo & Company set a $190.00 price objective on Alibaba Group in a report on Monday. Piper Sandler lowered Alibaba Group to a “hold” rating in a report on Thursday, October 8th. Finally, Citigroup upped their price objective on Alibaba Group from $190.00 to $193.00 and gave the company a “buy” rating in a research report on Thursday, October 8th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, Alibaba Group has an average rating of “Moderate Buy” and an average price target of $183.53.

Alibaba Group Stock Performance

Shares of NYSE BABA opened at $101.46 on Thursday. The firm’s 50-day moving average price is $107.56 and its 200-day moving average price is $123.99. Alibaba Group has a 52-week low of $91.99 and a 52-week high of $181.10. The company has a market cap of $252.40 billion, a PE ratio of 24.57, a PEG ratio of 1.31 and a beta of 0.44. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.21.

Alibaba Group (NYSE:BABA) last released its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.68). Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. The company had revenue of $39.64 billion for the quarter, compared to analysts’ expectations of $39.52 billion. During the same period in the previous year, the firm earned $14.75 earnings per share. The firm’s revenue for the quarter was up 8.6% on a year-over-year basis. As a group, analysts anticipate that Alibaba Group will post 5.89 EPS for the current year.

Insider Buying and Selling at Alibaba Group

In other news, insider Fang Jiang sold 885,272 shares of Alibaba Group stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $13.55, for a total transaction of $11,995,435.60. Following the transaction, the insider owned 4,679,097 shares in the company, valued at $63,401,764.35. This trade represents a 15.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Yongming Wu purchased 350,000 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were acquired at an average price of $14.24 per share, for a total transaction of $4,984,000.00. Following the purchase, the chief executive officer directly owned 1,364,418 shares in the company, valued at approximately $19,429,312.32. The trade was a 34.50% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 999,971 shares of company stock valued at $13,563,304 in the last quarter. Insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Alibaba Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Continuum Advisory LLC purchased a new position in Alibaba Group during the second quarter valued at $28,000. GK Wealth Management LLC purchased a new stake in Alibaba Group in the third quarter worth about $32,000. Latitude Advisors LLC purchased a new stake in Alibaba Group in the third quarter worth about $43,000. Silver Grove Financial Group Inc. increased its position in Alibaba Group by 107.4% in the third quarter. Silver Grove Financial Group Inc. now owns 618 shares of the specialty retailer’s stock worth $66,000 after buying an additional 320 shares in the last quarter. Finally, S&G Foundation bought a new position in shares of Alibaba Group in the second quarter worth about $77,000. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Alibaba Group

Investors following BABA have been watching these headlines:

• Positive Sentiment: Bank of America maintained its Buy rating and $178 price target, signaling confidence in Alibaba’s longer-term prospects despite recent underperformance. Article: Alibaba Has Disappointed for a Year: Why Bank of America Sees 76% Upside
• Positive Sentiment: Alibaba is advancing a proposed separate Hong Kong listing for T-Head, its semiconductor subsidiary. A spin-off could give investors more direct exposure to its AI-chip business and potentially highlight value in the unit. Article: Alibaba announces plans to list T-Head, its Nvidia chip rival
• Negative Sentiment: Reports that the U.S. may restrict Chinese AI companies from remotely accessing advanced chips hosted in overseas data centers have heightened concern about Alibaba’s AI and cloud ambitions. Article: Alibaba, Tencent shares fall on report U.S. weighs curbs on remote AI chip access

About Alibaba Group

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates digital platforms that connect consumers, merchants, businesses and other participants in commerce. Its businesses include China-focused marketplaces such as Taobao and Tmall, international platforms including AliExpress and Alibaba.com, and Alibaba Cloud, which provides cloud computing and related technology services. The group also has operations in areas such as logistics, local services and digital media.