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

Alibaba Group Holding Limited (NYSE:BABA) saw its shares increase by 2% during trading on Friday, following an upgrade from the investment firm Robert W. Baird. The firm raised its price target for Alibaba's stock from $88.00 to $110.00, indicating a strong outlook for the company. Robert W. Baird currently maintains an outperform rating on the stock. During the trading session, Alibaba Group's shares reached a peak of $98.90 before settling at $98.24. In total, approximately 5.5 million shares changed hands during midday trading, representing a 69% decrease from the average trading volume of 17.8 million shares. The previous closing price for the stock was $96.36.

Many analysts have recently provided updates on Alibaba Group as well. On October 7th, Macquarie upgraded Alibaba from a "neutral" rating to an "outperform" rating, with a price target set at $145.00. Additionally, Susquehanna cut its price target from $135.00 to $130.00 while maintaining a "positive" rating on the stock. Loop Capital reaffirmed a "buy" rating with a price target of $115.00, and Benchmark also reiterated a "buy" rating with a target of $118.00. Furthermore, Sanford C. Bernstein raised its target from $80.00 to $85.00, giving the stock a "market perform" rating. Currently, out of the analysts who follow Alibaba, two have a hold rating, while fifteen have issued a buy rating. According to MarketBeat, Alibaba Group holds an average rating of "Moderate Buy" and has a consensus price target of $114.00.

Investors' Interest in Alibaba Group

In recent quarters, a number of institutional investors have adjusted their holdings in Alibaba Group. For instance, ICA Group Wealth Management LLC increased its stake by 14.6% during the second quarter, now owning 1,004 shares valued at approximately $72,000. Cornerstone Wealth Management LLC raised its position by 4.3% in the third quarter, reaching ownership of 3,400 shares worth $361,000. North Star Investment Management Corp. also boosted its stake by 11.2%, now holding 1,533 shares valued at around $111,000. Meanwhile, Concord Wealth Partners increased its investment by an impressive 155%, owning 255 shares worth $27,000. EPIQ Capital Group LLC slightly raised its stake by 0.3%, now owning 46,091 shares valued at $3.4 million. Overall, institutional investors own about 13.47% of Alibaba Group's stock.

Recent Price Trends for Alibaba Group

The company's 50-day moving average price is currently $93.79, and its 200-day moving average price stands at $82.91. Alibaba Group's market capitalization is approximately $249.28 billion. The company reports a debt-to-equity ratio of 0.17 and a current ratio of 1.41, alongside a quick ratio of 1.41. Its price-to-earnings ratio is 22.90, with a price/earnings growth (P/E/G) ratio of 0.55, indicating solid growth at a reasonable price.
On August 15th, Alibaba Group released its quarterly earnings results, showing a remarkable earnings per share (EPS) of $16.44 for the quarter. This result surpassed analysts' expectations, which had a consensus estimate of $1.87 by more than $14.57. The company reported a return on equity of 12.08% and a net margin of 7.31%. In terms of revenue, Alibaba Group generated $243.24 billion during the quarter, slightly below the consensus estimate of $248.32 billion, but still representing a year-over-year increase of 3.9%. Analysts predict that Alibaba Group will report an EPS of 7.93 for the current year.

About Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, provides vital technology infrastructure and marketing services to assist various merchants, brands, retailers, and other businesses in engaging with customers within the People's Republic of China and abroad. The company operates across seven key segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others.

Alibaba, Stocks, Investors