Alibaba Group (NYSE:BABA) Stock Price Down 6.5% – What’s Next?

Alibaba Group Holding Limited (NYSE:BABA) shares fell 6.5% during mid-day trading on Tuesday . The stock traded as low as $108.39 and last traded at $109.91. 18,536,906 shares were traded during mid-day trading, an increase of 5% from the average session volume of 17,699,340 shares. The stock had previously closed at $117.52.

Analyst Ratings Changes

Several analysts have recently commented on BABA shares. Morgan Stanley restated an “equal weight” rating and set a $90.00 target price on shares of Alibaba Group in a report on Friday, August 23rd. Susquehanna lowered their price objective on shares of Alibaba Group from $135.00 to $130.00 and set a “positive” rating for the company in a research report on Monday, August 19th. Sanford C. Bernstein upped their target price on shares of Alibaba Group from $80.00 to $85.00 and gave the stock a “market perform” rating in a research report on Friday, August 16th. Jefferies Financial Group reissued a “buy” rating and issued a $116.00 price target on shares of Alibaba Group in a report on Friday, July 26th. Finally, JPMorgan Chase & Co. increased their price objective on Alibaba Group from $100.00 to $108.00 and gave the company an “overweight” rating in a research report on Friday, August 16th. Two investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $111.12.

Alibaba Group Stock Down 6.9 %

The company has a market cap of $277.73 billion, a price-to-earnings ratio of 25.62, a price-to-earnings-growth ratio of 0.46 and a beta of 0.35. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.17. The firm’s fifty day moving average price is $87.38 and its 200-day moving average price is $80.18.

Alibaba Group (NYSE:BABA) last announced its quarterly earnings results on Thursday, August 15th. The specialty retailer reported $16.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $14.57. Alibaba Group had a return on equity of 12.08% and a net margin of 7.31%. The company had revenue of $243.24 billion during the quarter, compared to the consensus estimate of $248.32 billion. During the same period in the prior year, the company earned $2.47 earnings per share. The company’s revenue for the quarter was up 3.9% compared to the same quarter last year. Sell-side analysts predict that Alibaba Group Holding Limited will post 7.93 earnings per share for the current year.

Institutional Trading of Alibaba Group

A number of institutional investors have recently modified their holdings of BABA. First Command Advisory Services Inc. bought a new stake in Alibaba Group in the 2nd quarter valued at approximately $25,000. GPS Wealth Strategies Group LLC lifted its position in shares of Alibaba Group by 139.3% in the second quarter. GPS Wealth Strategies Group LLC now owns 359 shares of the specialty retailer’s stock worth $26,000 after purchasing an additional 209 shares in the last quarter. Strategic Investment Solutions Inc. IL acquired a new position in Alibaba Group during the second quarter worth $27,000. Register Financial Advisors LLC acquired a new stake in Alibaba Group in the 1st quarter valued at $31,000. Finally, Asset Dedication LLC increased its stake in Alibaba Group by 315.0% in the 2nd quarter. Asset Dedication LLC now owns 527 shares of the specialty retailer’s stock valued at $38,000 after buying an additional 400 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors.

About Alibaba Group

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.