Alibaba Group (NYSE:BABA) Trading Down 3.4% – Here’s What Happened

Shares of Alibaba Group Holding Limited (NYSE:BABA) fell 3.4% during trading on Wednesday . The stock traded as low as $115.37 and last traded at $115.6370. 10,747,224 shares were traded during trading, a decline of 9% from the average session volume of 11,776,179 shares. The stock had previously closed at $119.70.

Trending Headlines about Alibaba Group

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

• Positive Sentiment: Alibaba reportedly offered about $1.5 billion to buy grocery delivery firm Pupu, a move that would expand its instant-retail and grocery push and sharpen its competition with Meituan. Alibaba Bids $1.5B for Pupu to Challenge Meituan in Grocery Delivery
• Positive Sentiment: Several recent analyst notes remain constructive, with price targets clustering well above the current trading range, suggesting some investors still see meaningful upside.
• Neutral Sentiment: Alibaba also named a new CEO for DingTalk after internal debate over AI strategy, signaling ongoing management changes but not an immediate financial impact. Alibaba Names 34-Year-Old Tech Geek as DingTalk’s New CEO
• Negative Sentiment: Beijing reportedly criticized discount-heavy promotions during the 618 shopping festival, adding fresh regulatory risk for Alibaba and other Chinese e-commerce leaders. Alibaba and JD Slide After Beijing Rebuke
• Negative Sentiment: Two securities-fraud law firms announced continuing investigations into Alibaba, which can further hurt sentiment by raising litigation and governance concerns. Securities Fraud Investigation Into Alibaba Group Holding Ltd. (BABA) Continues
• Negative Sentiment: The stock is also being weighed by reports that Alibaba was added to a U.S. Defense Department list of companies linked to China’s military, which could increase institutional caution toward the ADR. Is Alibaba Group Holding Limited (BABA) A Good Stock To Buy Now?

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on BABA. JPMorgan Chase & Co. lifted their price objective on shares of Alibaba Group from $200.00 to $205.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Argus upgraded shares of Alibaba Group to a “hold” rating in a report on Tuesday, March 24th. Mizuho lifted their price objective on shares of Alibaba Group from $190.00 to $195.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Morgan Stanley lifted their price objective on shares of Alibaba Group from $180.00 to $190.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Finally, Wall Street Zen upgraded shares of Alibaba Group from a “sell” rating to a “hold” rating in a report on Saturday, May 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Alibaba Group currently has a consensus rating of “Moderate Buy” and an average target price of $188.76.

Alibaba Group Stock Up 0.0%

The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. The stock’s fifty day moving average price is $130.29 and its 200-day moving average price is $144.15. The company has a market capitalization of $270.39 billion, a price-to-earnings ratio of 18.51, a P/E/G ratio of 1.98 and a beta of 0.47.

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

Alibaba Group Announces Dividend

The company also recently announced an annual dividend, which will be paid on Monday, July 13th. Investors of record on Thursday, June 11th will be paid a $1.05 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a dividend yield of 93.0%. Alibaba Group’s dividend payout ratio (DPR) is currently 15.60%.

Hedge Funds Weigh In On Alibaba Group

Several hedge funds and other institutional investors have recently made changes to their positions in BABA. Northwestern Mutual Wealth Management Co. grew its stake in shares of Alibaba Group by 7,680.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock valued at $881,554,000 after buying an additional 5,936,847 shares in the last quarter. Capital World Investors grew its stake in shares of Alibaba Group by 1,074.9% in 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 buying an additional 5,524,354 shares in the last quarter. Norges Bank bought a new position in Alibaba Group during the fourth quarter worth $594,477,000. Artisan Partners Limited Partnership bought a new position in Alibaba Group during the third quarter worth $290,208,000. Finally, Trivest Advisors Ltd bought a new position in Alibaba Group during the third quarter worth $202,126,000. 13.47% of the stock is owned by institutional investors.

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.