Alibaba Group (NYSE:BABA) Shares Down 2.6% – Should You Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s stock price dropped 2.6% on Tuesday . The company traded as low as $142.50 and last traded at $143.72. Approximately 11,122,880 shares traded hands during trading, a decline of 41% from the average daily volume of 18,872,373 shares. The stock had previously closed at $147.57.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Citigroup lifted their target price on shares of Alibaba Group from $133.00 to $138.00 and gave the stock a “buy” rating in a research note on Friday, January 10th. StockNews.com raised shares of Alibaba Group from a “hold” rating to a “buy” rating in a research note on Friday, February 21st. Bank of America raised their target price on Alibaba Group from $117.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, February 21st. Robert W. Baird upped their price target on Alibaba Group from $110.00 to $125.00 and gave the company an “outperform” rating in a research report on Wednesday, February 19th. Finally, Arete Research upgraded Alibaba Group to a “strong-buy” rating in a research report on Friday, February 28th. Fifteen equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $144.07.

Alibaba Group Stock Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.48 and a current ratio of 1.48. The business’s 50-day moving average is $111.98 and its 200-day moving average is $99.32. The company has a market capitalization of $341.56 billion, a PE ratio of 20.75, a PEG ratio of 0.61 and a beta of 0.27.

Alibaba Group (NYSE:BABA) last released its earnings results 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 business had revenue of $38.38 billion for the quarter, compared to analysts’ expectations of $38.19 billion. Alibaba Group had a net margin of 12.29% and a return on equity of 12.89%. On average, research analysts anticipate that Alibaba Group Holding Limited will post 7.86 earnings per share for the current year.

Institutional Investors Weigh In On Alibaba Group

A number of institutional investors have recently modified their holdings of the stock. Decker Retirement Planning Inc. bought a new position in Alibaba Group in the 4th quarter worth about $31,000. Sierra Ocean LLC bought a new position in shares of Alibaba Group in the fourth quarter worth approximately $32,000. Assetmark Inc. grew its holdings in shares of Alibaba Group by 225.4% during the third quarter. Assetmark Inc. now owns 397 shares of the specialty retailer’s stock valued at $42,000 after buying an additional 275 shares during the last quarter. Strategic Investment Solutions Inc. IL increased its position 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 acquiring an additional 200 shares in the last quarter. Finally, Redwood Park Advisors LLC purchased a new position in Alibaba Group in the 4th quarter worth approximately $52,000. 13.47% of the stock is owned by hedge funds and other 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.