Today: The Zacks Investment Research Lowers Alibaba Group Holding Ltd. (BABA) to Hold

The Zacks Investment Research Lowers Alibaba Group Holding Ltd. (BABA) to Hold

Alibaba Group Holding Ltd. (NYSE:BABA) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday.

According to Zacks, “Alibaba Group is a Chinese e-Commerce giant which caters mainly to its native market. Alibaba Group’s fiscal first-quarter results exceeded the Zacks Consensus Estimate. The solid growth in Alibaba’s China retail and mobile business as well as strength across most of the core operating metrics aided the results. The company’s dominance in the mobile commerce market, its continued efforts to develop new products, international growth opportunities and strong financial position are all positives. However, macro headwinds, continued investments and increasing competition from Tencent Holdings and Baidu remain the overhangs.”

Other analysts have also issued reports about the company. RBC Capital Markets reaffirmed an “outperform” rating and set a $105.00 target price on shares of Alibaba Group Holding in a report on Thursday, August 11th. Needham & Company LLC reaffirmed a “buy” rating on shares of Alibaba Group Holding in a report on Monday, June 27th. Raymond James Financial Inc. raised Alibaba Group Holding from an “outperform” rating to a “strong-buy” rating and raised their target price for the stock from $95.00 to $124.00 in a report on Friday, August 12th. Evercore ISI reaffirmed a “buy” rating and set a $98.00 target price on shares of Alibaba Group Holding in a report on Tuesday, July 26th. Finally, Wedbush raised their target price on Alibaba Group Holding from $80.00 to $90.00 and gave the stock a “neutral” rating in a report on Friday, August 12th. Three analysts have rated the stock with a hold rating, thirty have issued a buy rating and two have given a strong buy rating to the company’s stock. Alibaba Group Holding currently has an average rating of “Buy” and an average price target of $110.89.

Alibaba Group Holding (NYSE:BABA) traded down 2.312% on Thursday, reaching $101.224. The company had a trading volume of 13,426,785 shares. The stock’s 50 day moving average is $102.81 and its 200-day moving average is $86.43. Alibaba Group Holding has a 1-year low of $59.25 and a 1-year high of $109.87. The stock has a market capitalization of $250.33 billion, a P/E ratio of 35.882 and a beta of 2.95.

Alibaba Group Holding (NYSE:BABA) last released its quarterly earnings results on Thursday, August 11th. The company reported $0.74 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.11. Alibaba Group Holding had a return on equity of 12.31% and a net margin of 42.95%. The company earned $4.84 billion during the quarter, compared to analysts’ expectations of $4.57 billion. During the same period last year, the business posted $0.59 earnings per share. On average, equities analysts predict that Alibaba Group Holding will post $3.29 EPS for the current fiscal year.

A number of hedge funds have recently made changes to their positions in the company. UBS Asset Management Americas Inc. increased its stake in Alibaba Group Holding by 193.7% in the first quarter. UBS Asset Management Americas Inc. now owns 5,060,947 shares of the company’s stock valued at $399,967,000 after buying an additional 3,337,825 shares during the last quarter. Primecap Management Co. CA boosted its position in shares of Alibaba Group Holding by 15.8% in the first quarter. Primecap Management Co. CA now owns 15,674,905 shares of the company’s stock valued at $1,238,788,000 after buying an additional 2,133,100 shares during the period. Scotia Capital Inc. boosted its position in shares of Alibaba Group Holding by 127.8% in the first quarter. Scotia Capital Inc. now owns 23,694 shares of the company’s stock valued at $1,874,000 after buying an additional 108,979 shares during the period. Edmond DE Rothschild Italia SGR SPA boosted its position in shares of Alibaba Group Holding by 0.9% in the first quarter. Edmond DE Rothschild Italia SGR SPA now owns 103,124 shares of the company’s stock valued at $8,150,000 after buying an additional 951 shares during the period. Finally, Lazard Asset Management LLC boosted its position in shares of Alibaba Group Holding by 160.1% in the first quarter. Lazard Asset Management LLC now owns 1,911,851 shares of the company’s stock valued at $151,092,000 after buying an additional 1,176,849 shares during the period. 29.07% of the stock is owned by institutional investors.

About Alibaba Group Holding

Alibaba Group Holding Limited is a holding company. The Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (the PRC or China) and internationally.

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