Alibaba Group (NYSE:BABA) Shares Gap Down – Time to Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $109.68, but opened at $105.80. Alibaba Group shares last traded at $107.25, with a volume of 10,373,318 shares.

Analyst Ratings Changes

BABA has been the topic of several research analyst reports. Macquarie raised shares of Alibaba Group from a “neutral” rating to an “outperform” rating and set a $145.00 target price on the stock in a research note on Monday. Morgan Stanley reissued an “equal weight” rating and set a $90.00 price target on shares of Alibaba Group in a research report on Friday, August 23rd. Jefferies Financial Group restated a “buy” rating and set a $116.00 price target on shares of Alibaba Group in a report on Friday, July 26th. Robert W. Baird increased their price objective on Alibaba Group from $85.00 to $88.00 and gave the stock an “outperform” rating in a report on Friday, August 16th. Finally, Truist Financial dropped their price target 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. Two analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $111.12.

Alibaba Group Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.41 and a current ratio of 1.41. The stock has a market cap of $276.94 billion, a price-to-earnings ratio of 24.77, a P/E/G ratio of 0.46 and a beta of 0.35. The stock has a fifty day simple moving average of $88.02 and a two-hundred day simple moving average of $80.45.

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. The firm had revenue of $243.24 billion during the quarter, compared to the consensus estimate of $248.32 billion. Alibaba Group had a return on equity of 12.08% and a net margin of 7.31%. The business’s quarterly revenue was up 3.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.47 earnings per share. Analysts expect that Alibaba Group Holding Limited will post 7.93 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Strategic Investment Solutions Inc. IL bought a new position in Alibaba Group in the 2nd quarter valued at $27,000. First Command Advisory Services Inc. purchased a new position in Alibaba Group in the second quarter valued at about $25,000. GPS Wealth Strategies Group LLC grew its position in shares of Alibaba Group by 139.3% during the 2nd quarter. GPS Wealth Strategies Group LLC now owns 359 shares of the specialty retailer’s stock valued at $26,000 after acquiring an additional 209 shares during the period. Register Financial Advisors LLC purchased a new stake in shares of Alibaba Group during the 1st quarter worth approximately $31,000. Finally, Asset Dedication LLC raised its holdings in shares of Alibaba Group by 315.0% in the 2nd quarter. Asset Dedication LLC now owns 527 shares of the specialty retailer’s stock worth $38,000 after purchasing an additional 400 shares during the period. Institutional investors own 13.47% of the company’s stock.

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.