Alibaba Group (NYSE:BABA) Shares Gap Up – Should You Buy?

Alibaba Group Holding Limited (NYSE:BABA)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $96.03, but opened at $99.39. Alibaba Group shares last traded at $99.21, with a volume of 20,249,267 shares traded.

Wall Street Analysts Forecast Growth

BABA has been the topic of several recent research reports. Bank of America upped their price target on shares of Alibaba Group from $106.00 to $124.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Macquarie upgraded Alibaba Group from a “neutral” rating to an “outperform” rating and set a $145.00 target price on the stock in a report on Monday, October 7th. Robert W. Baird increased their target price on Alibaba Group from $88.00 to $110.00 and gave the company an “outperform” rating in a research note on Thursday, October 24th. Barclays reduced their target price on Alibaba Group from $137.00 to $130.00 and set an “overweight” rating on the stock in a report on Tuesday, November 19th. Finally, Mizuho raised their target price on shares of Alibaba Group from $92.00 to $113.00 and gave the stock an “outperform” rating in a report on Tuesday, November 12th. Two investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $115.13.

Alibaba Group Stock Performance

The company has a fifty day moving average price of $85.93 and a two-hundred day moving average price of $88.52. The firm has a market cap of $244.75 billion, a price-to-earnings ratio of 20.84, a price-to-earnings-growth ratio of 0.37 and a beta of 0.30. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.37 and a quick ratio of 1.37.

Alibaba Group (NYSE:BABA) last posted its quarterly earnings results on Friday, November 15th. The specialty retailer reported $15.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $13.19. The firm had revenue of $236.50 billion for the quarter, compared to analyst estimates of $239.45 billion. Alibaba Group had a net margin of 8.98% and a return on equity of 12.28%. The firm’s quarterly revenue was up 5.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.82 earnings per share. As a group, equities research analysts expect that Alibaba Group Holding Limited will post 7.86 EPS for the current year.

Hedge Funds Weigh In On Alibaba Group

A number of institutional investors have recently bought and sold shares of BABA. TRUE Private Wealth Advisors grew its position in Alibaba Group by 3.7% during the third quarter. TRUE Private Wealth Advisors now owns 3,123 shares of the specialty retailer’s stock valued at $331,000 after purchasing an additional 112 shares in the last quarter. Venturi Wealth Management LLC grew its holdings in shares of Alibaba Group by 6.0% during the 3rd quarter. Venturi Wealth Management LLC now owns 2,152 shares of the specialty retailer’s stock valued at $228,000 after acquiring an additional 121 shares in the last quarter. Capital Investment Advisory Services LLC raised its holdings in shares of Alibaba Group by 3.3% during the fourth quarter. Capital Investment Advisory Services LLC now owns 3,883 shares of the specialty retailer’s stock worth $329,000 after acquiring an additional 124 shares in the last quarter. Sivia Capital Partners LLC boosted its position in Alibaba Group by 3.6% during the fourth quarter. Sivia Capital Partners LLC now owns 3,825 shares of the specialty retailer’s stock worth $324,000 after purchasing an additional 134 shares during the period. Finally, Wynn Capital LLC lifted its stake in shares of Alibaba Group by 1.0% in the fourth quarter. Wynn Capital LLC now owns 13,013 shares of the specialty retailer’s stock worth $1,103,000 after buying an additional 135 shares during the last quarter. Hedge funds and other institutional investors own 13.47% of the company’s stock.

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.