Alibaba Group (NYSE:BABA) Shares Gap Down - Here's Why

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) 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 trading hands.

Wall Street Analysts Forecast Growth

BABA has been the topic of several recent analyst reports. Benchmark increased their price objective on shares of Alibaba Group from $118.00 to $190.00 and gave the stock a "buy" rating in a report on Friday, February 21st. Arete Research upgraded shares of Alibaba Group to a "strong-buy" rating in a report on Friday, February 28th. StockNews.com upgraded Alibaba Group from a "hold" rating to a "buy" rating in a report on Friday, February 21st. JPMorgan Chase & Co. increased their target price on Alibaba Group from $125.00 to $170.00 and gave the stock an "overweight" rating in a research report on Friday, February 21st. Finally, Sanford C. Bernstein raised Alibaba Group from a "market perform" rating to an "outperform" rating and boosted their price target for the company from $104.00 to $165.00 in a research report on Tuesday, February 25th. Fifteen investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Alibaba Group presently has an average rating of "Buy" and a consensus price target of $144.07.

Remove Ads

Alibaba Group Stock Down 1.3 %

The stock has a market capitalization of $321.14 billion, a price-to-earnings ratio of 19.53, a price-to-earnings-growth ratio of 0.61 and a beta of 0.28. The firm has a 50-day moving average of $116.49 and a 200 day moving average of $100.91. 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 - Get Free Report) last announced its quarterly earnings data on Thursday, February 20th. The specialty retailer reported $2.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.84 by ($0.07). The firm had revenue of $38.38 billion for the quarter, compared to analyst estimates of $38.19 billion. Alibaba Group had a net margin of 12.29% and a return on equity of 12.89%. On average, sell-side 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 large investors have recently added to or reduced their stakes in the company. Decker Retirement Planning Inc. acquired a new position in shares of Alibaba Group in the 4th quarter valued at about $31,000. Sierra Ocean LLC acquired a new position in Alibaba Group in the fourth quarter valued at approximately $32,000. Strategic Investment Solutions Inc. IL grew its holdings in shares of Alibaba Group by 59.0% during the fourth quarter. Strategic Investment Solutions Inc. IL now owns 539 shares of the specialty retailer's stock valued at $46,000 after purchasing an additional 200 shares during the last quarter. Redwood Park Advisors LLC acquired a new stake in shares of Alibaba Group during the 4th quarter worth approximately $52,000. Finally, Kieckhefer Group LLC bought a new stake in shares of Alibaba Group in the 4th quarter worth approximately $55,000. 13.47% of the stock is currently owned by institutional investors.

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.