Alibaba Group (NYSE:BABA) Trading Down 2.3% – Time to Sell?

Alibaba Group Holding Limited (NYSE:BABA) shares traded down 2.3% on Thursday . The company traded as low as $109.66 and last traded at $112.6690. 16,179,754 shares were traded during trading, an increase of 37% from the average session volume of 11,816,144 shares. The stock had previously closed at $115.38.

Alibaba Group News Roundup

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

• Negative Sentiment: Beijing has reportedly stepped up scrutiny of discount marketing and misleading promotions during the 618 shopping festival, which adds regulatory risk for Alibaba and other Chinese e-commerce leaders. Alibaba, JD.com Shares Fall as Beijing Launches Fresh Crackdown on Discount Marketing
• Negative Sentiment: The U.S. Defense Department reportedly added Alibaba to a list of companies linked to China’s military, raising geopolitical and regulatory concerns that can weigh on U.S.-listed Chinese stocks. Securities Fraud Investigation Into Alibaba Group Holding Ltd. (BABA) Continues – Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz
• Negative Sentiment: Alibaba also traded ex-dividend, which mechanically reduces the share price and can amplify selling on the day. Is Alibaba Group Holding Limited (BABA) A Good Stock To Buy Now?
• Negative Sentiment: Alibaba’s AI leadership change and reports of China’s large state-backed AI infrastructure spending add uncertainty for investors weighing the company’s near-term AI strategy and competitive position. Alibaba’s AI-Chat Chief Replaced After Debate About Focus

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. JPMorgan Chase & Co. increased their target price on Alibaba Group from $200.00 to $205.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. BNP Paribas Exane assumed coverage on Alibaba Group in a report on Wednesday, April 29th. They issued an “outperform” rating and a $209.00 target price for the company. Zacks Research raised Alibaba Group from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 2nd. Argus raised Alibaba Group to a “hold” rating in a report on Tuesday, March 24th. Finally, Morgan Stanley increased their target price 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 assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $188.76.

Alibaba Group Stock Performance

The stock has a market cap of $270.31 billion, a price-to-earnings ratio of 18.50, a PEG ratio of 2.05 and a beta of 0.47. The stock’s fifty day moving average is $130.55 and its 200-day moving average is $144.44. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21.

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 firm had revenue of $35.30 billion for the quarter. On average, analysts forecast that Alibaba Group Holding Limited will post 6.75 EPS for the current year.

Alibaba Group Dividend Announcement

The firm also recently announced an annual dividend, which will be paid on Monday, July 13th. Stockholders of record on Thursday, June 11th will be paid a dividend of $1.05 per share. This represents a dividend yield of 93.0%. The ex-dividend date is Thursday, June 11th. Alibaba Group’s payout ratio is currently 16.91%.

Hedge Funds Weigh In On Alibaba Group

A number of large investors have recently made changes to their positions in the company. Capital World Investors increased its stake in shares of Alibaba Group by 7.7% during the fourth quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock worth $953,527,000 after purchasing an additional 466,847 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in shares of Alibaba Group by 7,680.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock worth $881,554,000 after purchasing an additional 5,936,847 shares during the period. Fisher Asset Management LLC increased its stake in shares of Alibaba Group by 0.8% during the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer’s stock worth $782,135,000 after purchasing an additional 42,297 shares during the period. Norges Bank bought a new stake in shares of Alibaba Group in the fourth quarter valued at approximately $594,477,000. Finally, American Century Companies Inc. boosted its stake in shares of Alibaba Group by 17.7% in the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock valued at $533,964,000 after buying an additional 448,484 shares during the period. Institutional investors own 13.47% of the company’s stock.

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.