Alibaba Group FY2027 EPS Estimate Raised by Erste Group Bank

Alibaba Group Holding Limited (NYSE:BABA) – Research analysts at Erste Group Bank lifted their FY2027 EPS estimates for shares of Alibaba Group in a report released on Monday, July 27th. Erste Group Bank analyst S. Lingnau now expects that the specialty retailer will post earnings of $5.84 per share for the year, up from their prior forecast of $5.71. The consensus estimate for Alibaba Group’s current full-year earnings is $6.28 per share. Erste Group Bank also issued estimates for Alibaba Group’s FY2028 earnings at $8.46 EPS.

Alibaba Group (NYSE:BABA) last announced its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The company had revenue of $35.30 billion during the quarter.

Several other research firms have also commented on BABA. Nomura decreased their price objective on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating for the company in a research note on Thursday, June 25th. Zacks Research upgraded Alibaba Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, June 2nd. Mizuho upped their target price on Alibaba Group from $190.00 to $195.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. HSBC set a $170.00 price target on Alibaba Group in a research report on Thursday, July 9th. Finally, Morgan Stanley lifted their price target on Alibaba Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Alibaba Group currently has an average rating of “Moderate Buy” and an average price target of $186.90.

Alibaba Group Stock Up 1.0%

Alibaba Group stock opened at $116.19 on Friday. Alibaba Group has a fifty-two week low of $91.99 and a fifty-two week high of $192.67. The stock has a market cap of $278.50 billion, a PE ratio of 19.08, a price-to-earnings-growth ratio of 2.12 and a beta of 0.51. The firm’s 50-day simple moving average is $112.99 and its 200 day simple moving average is $132.92. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.28 and a current ratio of 1.28.

Hedge Funds Weigh In On Alibaba Group

Several institutional investors and hedge funds have recently bought and sold shares of the company. Hoey Investments Inc. lifted its position in shares of Alibaba Group by 95.2% during the 1st quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer’s stock valued at $26,000 after buying an additional 100 shares during the last quarter. Palisade Asset Management LLC bought a new position in shares of Alibaba Group during the 3rd quarter worth $37,000. Costello Asset Management INC purchased a new stake in Alibaba Group in the 4th quarter worth about $34,000. Palladiem LLC purchased a new stake in Alibaba Group in the 4th quarter worth about $38,000. Finally, Key Financial Inc raised its stake in Alibaba Group by 316.9% in the 4th quarter. Key Financial Inc now owns 271 shares of the specialty retailer’s stock valued at $40,000 after acquiring an additional 206 shares during the period. 13.47% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Alibaba Group news, insider Fang Jiang sold 4,898 shares of Alibaba Group stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $12.09, for a total value of $59,216.82. Following the sale, the insider owned 5,559,511 shares of the company’s stock, valued at approximately $67,214,487.99. The trade was a 0.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Hong Xu sold 175,054 shares of the business’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $12.15, for a total transaction of $2,126,906.10. Following the completion of the transaction, the chief financial officer owned 280,496 shares in the company, valued at approximately $3,408,026.40. The trade was a 38.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 920,303 shares of company stock valued at $70,796,370. Company insiders own 12.50% of the company’s stock.

Alibaba Group Announces Dividend

The business also recently disclosed an annual dividend, which was paid on Monday, July 13th. Investors of record on Thursday, June 11th were issued a dividend of $1.05 per share. This represents a yield of 93.0%. The ex-dividend date was Thursday, June 11th. Alibaba Group’s dividend payout ratio (DPR) is 16.91%.

Key Alibaba Group News

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: Wall Street analysts maintain an average Buy recommendation for Alibaba. While the consensus may be overly optimistic, the rating provides a supportive backdrop and suggests analysts see upside from current levels. Is Alibaba a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: A valuation analysis estimated that Alibaba could be approximately 41% undervalued based on discounted cash flow assumptions. The analysis suggests the market may already be pricing in substantial pessimism, including potential European Union regulatory fines. Alibaba Stock May Be 41% Undervalued
• Positive Sentiment: Jack Ma-backed OceanBase is reportedly seeking as much as $443 million to fund expansion in AI database services. Additional capital could help the Alibaba-linked business operate more independently and strengthen Alibaba’s broader AI and cloud ecosystem. Jack Ma-Backed OceanBase Seeks Funding for AI Push
• Neutral Sentiment: Alibaba advanced but continued to trail the broader market during the latest session, indicating that positive trading momentum has not yet translated into a clear change in its relative performance. Alibaba Ascends but Remains Behind Market
• Negative Sentiment: Analysts have highlighted weakening cash flow as a risk, with heavy spending on AI, cloud computing and quick-commerce investments outpacing cash generation despite improving cloud revenue. This could constrain returns and weigh on long-term growth if investment does not produce stronger profits. Will Alibaba’s Cash Flow Weakness Hurt Growth?
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Alibaba investors. Although no findings or liability were established, the investigation adds legal and headline risk to the shares. Pomerantz Investor Alert

Alibaba Group Company Profile

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.