Alibaba Group (NYSE:BABA) Trading Down 2.2% – Should You Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s stock price fell 2.2% during mid-day trading on Friday . The stock traded as low as $171.94 and last traded at $173.3460. 12,903,164 shares were traded during mid-day trading, a decline of 25% from the average session volume of 17,195,064 shares. The stock had previously closed at $177.18.

Alibaba Group News Summary

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

• Positive Sentiment: Arete Research upgraded BABA from Neutral to Buy and set a $190 price target; the upgrade triggered an intraday rally as investors responded to improved analyst conviction. Article Title
• Positive Sentiment: Reports that Alibaba is preparing to restructure and list its AI chip arm, T?Head, have driven optimism that a spinoff/IPO could unlock value and position the company in the hot AI?accelerator market — multiple outlets cite people familiar with the plan. Article Title
• Positive Sentiment: Brokerage coverage is tilted favorable: a consensus “Moderate Buy” from brokerages reinforces the bullish analyst tone and supports investor interest. Article Title
• Neutral Sentiment: Multiple news outlets reported the T?Head IPO story and intraday share pops/pre?market rallies; these are market?reaction pieces rather than official filings — the long?term impact depends on deal structure, timing and regulatory filings. Article Title

Analyst Ratings Changes

Several research analysts recently weighed in on BABA shares. Freedom Capital cut shares of Alibaba Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 6th. Erste Group Bank upgraded Alibaba Group from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Wall Street Zen lowered Alibaba Group from a “hold” rating to a “sell” rating in a report on Friday, November 28th. Citigroup lifted their price target on Alibaba Group from $218.00 to $225.00 and gave the stock a “buy” rating in a report on Wednesday, November 26th. Finally, Macquarie restated an “outperform” rating on shares of Alibaba Group in a research note on Tuesday, November 25th. Eighteen investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $192.72.

Alibaba Group Stock Performance

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a market capitalization of $413.85 billion, a PE ratio of 23.94, a P/E/G ratio of 3.73 and a beta of 0.37. The company’s fifty day simple moving average is $156.97 and its 200 day simple moving average is $150.02.

Institutional Investors Weigh In On Alibaba Group

Institutional investors and hedge funds have recently made changes to their positions in the business. Primecap Management Co. CA raised its holdings in shares of Alibaba Group by 0.7% during the 2nd quarter. Primecap Management Co. CA now owns 20,764,276 shares of the specialty retailer’s stock valued at $2,354,877,000 after buying an additional 140,579 shares in the last quarter. Capital World Investors grew its position in Alibaba Group by 1,074.9% during the third quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock valued at $1,079,229,000 after acquiring an additional 5,524,354 shares during the last quarter. Fisher Asset Management LLC raised its stake in shares of Alibaba Group by 0.5% during the third quarter. Fisher Asset Management LLC now owns 5,293,597 shares of the specialty retailer’s stock worth $946,125,000 after acquiring an additional 26,156 shares in the last quarter. Norges Bank purchased a new position in shares of Alibaba Group during the second quarter worth approximately $527,243,000. Finally, American Century Companies Inc. lifted its holdings in shares of Alibaba Group by 17.7% in the 3rd quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock worth $533,964,000 after acquiring an additional 448,484 shares during the last quarter. Hedge funds and other 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.