Alibaba Group (NYSE:BABA) Shares Down 1.3% - Time to Sell?

On Wednesday, shares of Alibaba Group Holding Limited (NYSE:BABA) fell by 1.3% during mid-day trading. The stock reached a low of $82.72 before last changing hands at $83.42. During this trading session, 4,167,734 shares were exchanged, marking a significant decrease of 59% when compared to the average trading volume of 10,247,902 shares. Before this decline, the stock had closed at $84.48.

Recent Analyst Ratings

Alibaba Group has been extensively analyzed by various research firms. Notably, Bank of America raised its price target for the company from $106.00 to $124.00, and categorized it as a "buy" in a report dated October 9th. Robert W. Baird also increased its price target from $88.00 to $110.00, giving Alibaba an "outperform" rating on October 24th. Meanwhile, Barclays adjusted its target price from $137.00 to $130.00 while maintaining an "overweight" rating as of November 19th. Mizuho revised its target up from $92.00 to $113.00, assigning an "outperform" rating on November 12th. Additionally, Benchmark reiterated a "buy" opinion with a new target price of $118.00 on November 15th. In total, two analysts recommend holding the stock, while fourteen suggest buying, resulting in a general rating of "Moderate Buy" with an average target price of $114.07 according to MarketBeat.

Stock Performance Metrics

The fifty-day moving average for Alibaba Group is $88.51, and the two-hundred-day moving average stands at $87.36. The company boasts a market capitalization of $199.21 billion, with a price-to-earnings ratio of 16.96 and a price-to-earnings growth ratio of 0.44. The stock carries a beta of 0.30, indicating relatively low volatility. Its quick ratio and current ratio both sit at 1.37, with a debt-to-equity ratio of 0.16, suggesting a financially stable position.

Quarterly Earnings Overview

Alibaba Group reported its quarterly earnings on November 15th, where it disclosed earnings of $15.06 per share, significantly surpassing the consensus forecast of $1.87 by $13.19. The company's return on equity was 12.28%, and its net profit margin was 8.98%. The revenue for the quarter amounted to $236.50 billion, although this was slightly lower than analysts' expectations of $239.45 billion. This revenue mark reflects a 5.2% increase compared to the same quarter in the previous year, where the earnings per share were $1.82. Analysts anticipate that Alibaba will report 8.44 earnings per share for the current year.

Institutional Investment Changes

Recently, several institutional investors have altered their stakes in Alibaba Group. For instance, Principal Financial Group Inc. increased its ownership by 20.4% during the second quarter. Post this adjustment, it now holds 49,517 shares of the stock, valued at approximately $3.57 million. Private Advisor Group LLC also raised its stake by 17.1% during the same period, now controlling 68,651 shares worth around $4.94 million. Furthermore, Asset Dedication LLC increased its stake by a remarkable 315.0%, while Acadian Asset Management LLC raised its position by 382.4%. Lastly, Prudential PLC made an entry by acquiring a new stake valued at $309,000. Overall, institutional investors retain 13.47% ownership of Alibaba's shares.

About Alibaba Group

Alibaba Group Holding Limited is a prominent company that provides technological infrastructure and marketing outreach to businesses and merchants in China and globally through its various subsidiaries. The company operates across several segments, including China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others.

Conclusion

As Alibaba Group's shares witness a decline, evaluation of analyst opinions, recent performance metrics, institutional investments, and earnings reports can play a crucial role in determining if it is a wise decision to sell or hold onto the stock.

Alibaba, Stocks, Trading