Zacks Investment Research downgraded shares of Alibaba Group (NYSE:BABA) from a hold rating to a strong sell rating in a research report report published on Monday.

According to Zacks, “Alibaba continues to face growing competition from the domestic as well as foreign e-commerce companies despite of its well-performing e-commerce platform. Further, intensifying competition in the global cloud market does not bode well for its initiatives toward global expansion. Further, macro economic conditions in China are major concerns. Also, Alibaba’s increasing investments might hurt its profitability. Notably, the stock has underperformed the industry it belongs to over a year. However, the company remains confident on its core e-commerce business, with the support of its New Retail strategy and FashionAI. Also, its expanding cloud business remains positive.”

A number of other equities research analysts have also recently commented on BABA. Susquehanna Bancshares raised their target price on shares of Alibaba Group from $220.00 to $305.00 and gave the stock a positive rating in a research note on Thursday, June 7th. BNP Paribas initiated coverage on shares of Alibaba Group in a report on Thursday, June 14th. They set a buy rating for the company. Wells Fargo & Co increased their price objective on shares of Alibaba Group from $230.00 to $250.00 and gave the company an outperform rating in a report on Thursday, June 14th. Argus initiated coverage on shares of Alibaba Group in a report on Monday, June 25th. They set a buy rating and a $275.00 price objective for the company. Finally, ValuEngine lowered shares of Alibaba Group from a buy rating to a hold rating in a report on Monday, July 2nd. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, twenty-nine have assigned a buy rating and two have given a strong buy rating to the stock. Alibaba Group currently has an average rating of Buy and an average price target of $229.53.

NYSE BABA opened at $165.40 on Monday. Alibaba Group has a 12 month low of $152.85 and a 12 month high of $211.70. The company has a market cap of $417.88 billion, a price-to-earnings ratio of 41.04, a PEG ratio of 1.19 and a beta of 2.40. The company has a current ratio of 1.44, a quick ratio of 1.44 and a debt-to-equity ratio of 0.26.

Alibaba Group (NYSE:BABA) last released its earnings results on Thursday, August 23rd. The specialty retailer reported $0.66 EPS for the quarter, missing analysts’ consensus estimates of $0.74 by ($0.08). Alibaba Group had a return on equity of 14.18% and a net margin of 20.57%. The firm had revenue of $12.23 billion for the quarter, compared to the consensus estimate of $12.25 billion. analysts expect that Alibaba Group will post 3.96 earnings per share for the current year.

Several hedge funds have recently bought and sold shares of BABA. Glen Harbor Capital Management LLC grew its holdings in shares of Alibaba Group by 19.6% in the first quarter. Glen Harbor Capital Management LLC now owns 2,144 shares of the specialty retailer’s stock valued at $394,000 after purchasing an additional 352 shares in the last quarter. Toronto Dominion Bank grew its holdings in shares of Alibaba Group by 132.5% in the first quarter. Toronto Dominion Bank now owns 1,423 shares of the specialty retailer’s stock valued at $261,000 after purchasing an additional 811 shares in the last quarter. Flinton Capital Management LLC grew its holdings in shares of Alibaba Group by 19.6% in the first quarter. Flinton Capital Management LLC now owns 3,752 shares of the specialty retailer’s stock valued at $689,000 after purchasing an additional 616 shares in the last quarter. Evergreen Capital Management LLC purchased a new position in shares of Alibaba Group in the first quarter valued at $206,000. Finally, TCW Group Inc. grew its holdings in shares of Alibaba Group by 10.4% in the first quarter. TCW Group Inc. now owns 242,668 shares of the specialty retailer’s stock valued at $44,539,000 after purchasing an additional 22,938 shares in the last quarter. 38.64% of the stock is owned by hedge funds and other institutional investors.

About Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others.

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