Alibaba Group (NYSE:BABA) Shares Gap Down – Time to Sell?

Alibaba Group Holding Limited (NYSE:BABA) shares gapped down prior to trading on Thursday . The stock had previously closed at $115.38, but opened at $110.88. Alibaba Group shares last traded at $110.7110, with a volume of 4,908,379 shares trading hands.

More Alibaba Group News

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

• Negative Sentiment: The Pentagon’s addition of Alibaba to a Chinese military-linked list is increasing U.S.-China policy risk and could deter some institutional investors. Alibaba slides as U.S. military-link designation and ex-dividend trade weigh on sentiment
• Negative Sentiment: Alibaba’s ex-dividend date is putting mechanical downward pressure on the stock, amplifying the day’s decline. Alibaba slides as U.S. military-link designation and ex-dividend trade weigh on sentiment
• Negative Sentiment: Beijing’s renewed crackdown on discount marketing and misleading ads is weighing on Alibaba and other China e-commerce names, raising concern about tighter regulation and margin pressure. Alibaba, JD.com Shares Fall as Beijing Launches Fresh Crackdown on Discount Marketing
• Negative Sentiment: Leadership turnover in Alibaba’s AI-chat unit has added to questions about the company’s execution in a key growth area. Alibaba’s AI-Chat Chief Replaced After Debate About Focus
• Neutral Sentiment: A bullish investor note argued Alibaba still looks attractive on valuation and momentum, helping offset some of the negative macro headlines. Is Alibaba Group Holding Limited (BABA) A Good Stock To Buy Now?
• Neutral Sentiment: Analysts still see meaningful upside in Alibaba, with recent price targets clustering well above the current share price. Alibaba slides as U.S. military-link designation and ex-dividend trade weigh on sentiment

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. DZ Bank downgraded Alibaba Group from a “buy” rating to a “hold” rating and set a $135.00 price objective for the company. in a research note on Friday, March 20th. Freedom Capital raised Alibaba Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, April 24th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Alibaba Group in a research note on Wednesday, May 27th. Barclays raised their price objective on Alibaba Group from $186.00 to $195.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. Finally, JPMorgan Chase & Co. raised their price objective on Alibaba Group from $200.00 to $205.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $188.76.

Alibaba Group Trading Down 3.2%

The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21. The business has a 50 day moving average of $130.55 and a 200-day moving average of $144.44. The stock has a market cap of $267.98 billion, a PE ratio of 18.36, a price-to-earnings-growth ratio of 2.05 and a beta of 0.47.

Alibaba Group (NYSE:BABA) last released its quarterly earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share for the quarter. The company had revenue of $35.30 billion during the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%. On average, analysts anticipate that Alibaba Group Holding Limited will post 6.75 EPS for the current year.

Alibaba Group Dividend Announcement

The business also recently declared an annual dividend, which will be paid on Monday, July 13th. Shareholders of record on Thursday, June 11th will be given a dividend of $1.05 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a yield of 94.0%. Alibaba Group’s dividend payout ratio (DPR) is presently 16.91%.

Hedge Funds Weigh In On Alibaba Group

Several hedge funds have recently bought and sold shares of the stock. Capital World Investors increased its position in 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 buying an additional 466,847 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in 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 buying an additional 5,936,847 shares in the last quarter. Fisher Asset Management LLC increased its position in 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 buying an additional 42,297 shares in the last quarter. Norges Bank purchased a new position in Alibaba Group during the fourth quarter worth $594,477,000. Finally, American Century Companies Inc. increased its position in Alibaba Group by 17.7% during the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock worth $533,964,000 after buying an additional 448,484 shares in the last quarter. Hedge funds and other institutional investors own 13.47% of the company’s stock.

About Alibaba Group

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.