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

Alibaba Group Holding Limited (NYSE:BABA) shares 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 changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Barclays upped their price objective on Alibaba Group from $130.00 to $180.00 and gave the stock an “overweight” rating in a research report on Friday, February 21st. Arete Research raised Alibaba Group to a “strong-buy” rating in a research report on Friday, February 28th. Morgan Stanley upgraded shares of Alibaba Group from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $100.00 to $180.00 in a report on Monday, February 24th. Benchmark boosted their price objective on shares of Alibaba Group from $118.00 to $190.00 and gave the stock a “buy” rating in a research report on Friday, February 21st. Finally, StockNews.com raised shares of Alibaba Group from a “hold” rating to a “buy” rating in a research report on Friday, February 21st. Fifteen research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $144.07.

Alibaba Group Price Performance

The company’s 50 day moving average is $114.33 and its 200-day moving average is $100.04. The firm has a market capitalization of $325.14 billion, a price-to-earnings ratio of 19.76, a P/E/G ratio of 0.61 and a beta of 0.27. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.19.

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

Hedge Funds Weigh In On Alibaba Group

Several institutional investors and hedge funds have recently modified their holdings of BABA. Foundations Investment Advisors LLC grew its stake in Alibaba Group by 21.1% in the 4th quarter. Foundations Investment Advisors LLC now owns 155,440 shares of the specialty retailer’s stock valued at $13,180,000 after buying an additional 27,088 shares during the last quarter. Berkshire Asset Management LLC PA acquired a new position in shares of Alibaba Group in the fourth quarter valued at approximately $911,000. Exchange Traded Concepts LLC increased its stake in shares of Alibaba Group by 131.2% during the fourth quarter. Exchange Traded Concepts LLC now owns 74,807 shares of the specialty retailer’s stock worth $6,343,000 after purchasing an additional 42,446 shares during the period. Bailard Inc. lifted its holdings in Alibaba Group by 46.3% during the 4th quarter. Bailard Inc. now owns 10,245 shares of the specialty retailer’s stock worth $869,000 after purchasing an additional 3,242 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in Alibaba Group by 7,734.1% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 269,805 shares of the specialty retailer’s stock valued at $28,632,000 after purchasing an additional 266,361 shares during the period. 13.47% of the stock is currently owned by institutional investors and hedge funds.

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.