Alibaba Group Target of Unusually Large Options Trading (NYSE:BABA)

Alibaba Group Holding Limited (NYSE:BABA) saw some unusual options trading activity on Tuesday. Investors purchased 314,739 call options on the company. This represents an increase of approximately 86% compared to the average daily volume of 169,302 call options.

Alibaba Group Stock Up 6.3 %

Shares of Alibaba Group stock traded up $5.68 on Tuesday, reaching $95.77. 31,006,537 shares of the company were exchanged, compared to its average volume of 16,366,700. The company has a market capitalization of $243.02 billion, a price-to-earnings ratio of 22.17, a PEG ratio of 0.43 and a beta of 0.33. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.17. Alibaba Group has a one year low of $66.63 and a one year high of $96.64. The company has a 50-day moving average of $81.03 and a 200 day moving average of $77.78.

Alibaba Group (NYSE:BABA) last issued its earnings results on Thursday, August 15th. The specialty retailer reported $16.44 EPS for the quarter, topping the consensus estimate of $1.87 by $14.57. Alibaba Group had a return on equity of 12.08% and a net margin of 7.31%. The company had revenue of $243.24 billion during the quarter, compared to the consensus estimate of $248.32 billion. During the same period in the previous year, the company posted $2.47 EPS. The firm’s revenue for the quarter was up 3.9% compared to the same quarter last year. On average, equities research analysts forecast that Alibaba Group will post 7.93 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Jefferies Financial Group reissued a “buy” rating and set a $116.00 price objective on shares of Alibaba Group in a report on Friday, July 26th. Sanford C. Bernstein lifted their price target on shares of Alibaba Group from $80.00 to $85.00 and gave the company a “market perform” rating in a report on Friday, August 16th. Truist Financial decreased their price objective on shares of Alibaba Group from $110.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, August 16th. Loop Capital reiterated a “buy” rating and issued a $115.00 target price on shares of Alibaba Group in a research note on Thursday, August 29th. Finally, JPMorgan Chase & Co. increased their price target on Alibaba Group from $100.00 to $108.00 and gave the stock an “overweight” rating in a research report on Friday, August 16th. Three investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $107.61.

Institutional Investors Weigh In On Alibaba Group

Large investors have recently bought and sold shares of the company. Primecap Management Co. CA lifted its stake in Alibaba Group by 5.2% in the 2nd quarter. Primecap Management Co. CA now owns 21,870,987 shares of the specialty retailer’s stock valued at $1,574,711,000 after purchasing an additional 1,074,175 shares during the last quarter. Sanders Capital LLC raised its stake in Alibaba Group by 5.4% during the 4th quarter. Sanders Capital LLC now owns 15,848,257 shares of the specialty retailer’s stock worth $1,228,398,000 after buying an additional 819,019 shares during the period. FIL Ltd grew its holdings in shares of Alibaba Group by 10.2% during the fourth quarter. FIL Ltd now owns 10,630,701 shares of the specialty retailer’s stock valued at $823,986,000 after buying an additional 983,842 shares during the last quarter. H&H International Investment LLC grew its holdings in Alibaba Group by 63.1% during the fourth quarter. H&H International Investment LLC now owns 4,959,230 shares of the specialty retailer’s stock worth $384,390,000 after buying an additional 1,918,730 shares in the last quarter. Finally, ARGA Investment Management LP raised its position in Alibaba Group by 39.2% in the 1st quarter. ARGA Investment Management LP now owns 3,582,005 shares of the specialty retailer’s stock valued at $259,194,000 after buying an additional 1,009,397 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors and hedge funds.

About Alibaba Group

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.