Alibaba Group (NYSE:BABA) Shares Rise 2% Following Analyst Upgrade

Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) saw its shares increase by 2% during trading on Friday after Robert W. Baird upgraded their price target for the stock from $88.00 to $110.00. Robert W. Baird has also assigned an "outperform" rating to the stock. During trading, Alibaba Group peaked at $98.90 before closing at $98.24. A total of 5,498,656 shares were exchanged during mid-day trading, which represents a significant decline of 69% from the average trading volume of 17,804,637 shares. The previous closing price was $96.36.

Several other analysts have expressed their views regarding Alibaba Group as well. Macquarie recently improved Alibaba Group's status from "neutral" to "outperform" and set a price target of $145.00 following their research report on October 7th. Additionally, Susquehanna lowered their expectations for Alibaba shares from $135.00 to $130.00, while maintaining a "positive" rating, in a report from August 19th. Loop Capital reaffirmed a "buy" rating and issued a price target of $115.00 for the stock on August 29th. Benchmark also reiterated a "buy" rating and placed a $118.00 price target on the shares on August 16th. Furthermore, Sanford C. Bernstein raised their price target from $80.00 to $85.00, giving the stock a "market perform" rating on the same day. Across the board, two analysts have rated the stock as a hold while fifteen have given it a buy rating. Based on MarketBeat's information, Alibaba Group has attained an average rating of "Moderate Buy" with a consensus price target of $114.00.

Investor Activity Surrounding Alibaba Group

A number of institutional investors have made changes to their positions in Alibaba Group recently. For example, ICA Group Wealth Management LLC increased its holdings by 14.6% in the second quarter, now owning 1,004 shares valued at $72,000 after acquiring an additional 128 shares. Similarly, Cornerstone Wealth Management LLC raised their stake by 4.3% in the third quarter and now holds 3,400 shares worth about $361,000 after buying an additional 139 shares. North Star Investment Management Corp. boosted its position in Alibaba Group by 11.2% in the first quarter, now owning 1,533 shares valued at $111,000 after acquiring 154 additional shares in the last quarter. Concord Wealth Partners significantly increased its position by 155.0% in the third quarter and owns 255 shares worth $27,000 after purchasing another 155 shares. Lastly, EPIQ Capital Group LLC grew its stake by 0.3% during the second quarter and now owns 46,091 shares worth $3,396,000 after buying an additional 157 shares. Overall, institutional investors own about 13.47% of Alibaba's stock.

Price Performance of Alibaba Group

Alibaba Group's 50-day moving average is currently $93.79, while its 200-day moving average stands at $82.91. The firm exhibits a debt-to-equity ratio of 0.17, alongside a current ratio and quick ratio of 1.41. Presently, Alibaba Group has a market capitalization of $249.28 billion and a PE ratio of 22.90, with a P/E/G ratio of 0.55 and a beta of 0.35.

In its latest quarterly earnings report, which was issued on August 15th, Alibaba Group reported earnings per share (EPS) of $16.44, which notably surpassed analysts' consensus estimate of $1.87 by $14.57. The company achieved a return on equity of 12.08% and a net margin of 7.31%. Revenue for the quarter was reported at $243.24 billion, falling short of the consensus estimate of $248.32 billion. This shows a year-over-year revenue growth of 3.9%. Analysts anticipate that Alibaba Group will achieve EPS of 7.93 for the current year.

Overview of Alibaba Group

Alibaba Group Holding Limited provides technology infrastructure and marketing services that enable merchants, brands, and retailers to engage with customers both within China and internationally. The company operates through several segments, including China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, as well as Innovation Initiatives and Others.

Alibaba, stocks, investment