Market Analysts see Alibaba Group Holding Limited [BABA] falling to $140. Time to buy?


Alibaba Group Holding Limited [NYSE: BABA] plunged by -$4.2 during the normal trading session on Friday and reaching a high of $122.91 during the day while it closed the day at $118.79. The company report on December 22, 2021 that READEN HOLDING CORPORATION (OTC PINK: RHCO) ANNOUNCES MAJOR SHARE TRANSACTION WITH COCOON HOLDINGS AFTER THE TRANSACTION WITH TIGER SUPER FUND.

READEN HOLDING CORPORATION (OTC PINK: RHCO), a Venture Capital Corporation which is active in the Fintech, Online Payment and E-commerce industries, today announced another major share transaction. Readen Investment Limited, a major shareholder of RHCO, has sold 28,600,000 shares of RHCO to IT Star Limited.

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IT Star Limited is fully owned by Cocoon Holdings Limited (0428.HK), a Venture Capital Company listed on the main board of HKEX. Cocoon Holdings held multiple equity investments in Hong Kong and US, including Tencent (, Alibaba (, China Mobile (, SMIC ( and AAC Tech (, etc. The transaction is part of the synergy between RHCO and Cocoon Holdings, as both parties strongly believe in the unlimited growing capacity of RHCO’s own OkeApp and OkePay. OkeApp is expected to sign up 8,000 and 10,000 new Merchants in 2022 as the continuously growing discount referral app launched earlier this year, and OkePay will be benefited from the 4 million monthly transactions brought by OkeApp. The two make a unique combo in Payment and Fintech sectors, and RHCO is expecting a major breakthrough in revenues. Due to their success, expansion plans are underway for other markets besides Hong Kong.

Alibaba Group Holding Limited stock has also gained 0.11% of its value over the past 7 days. However, BABA stock has declined by -17.62% in the 3 months of the year. Over the past six months meanwhile, it has lost -45.45% and lost -48.96% year-on date.

The market cap for BABA stock reached $320.58 billion, with 2.70 billion shares outstanding and 2.01 billion shares in the current float. Compared to the average trading volume of 23.33M shares, BABA reached a trading volume of 24199912 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Alibaba Group Holding Limited [BABA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BABA shares is $209.86 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BABA stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Atlantic Equities have made an estimate for Alibaba Group Holding Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 21, 2021. While these analysts kept the previous recommendation, Macquarie raised their target price to Outperform. The new note on the price target was released on December 07, 2021, representing the official price target for Alibaba Group Holding Limited stock. On November 19, 2021, analysts decreased their price target for BABA shares from 220 to 180.

The Average True Range (ATR) for Alibaba Group Holding Limited is set at 6.29, with the Price to Sales ratio for BABA stock in the period of the last 12 months amounting to 2.51. The Price to Book ratio for the last quarter was 2.12, with the Price to Cash per share for the same quarter was set at 26.71.

BABA stock trade performance evaluation

Alibaba Group Holding Limited [BABA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.11. With this latest performance, BABA shares dropped by -3.02% in over the last four-week period, additionally sinking by -45.45% over the last 6 months – not to mention a drop of -48.96% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BABA stock in for the last two-week period is set at 43.30, with the RSI for the last a single of trading hit 46.36, and the three-weeks RSI is set at 41.72 for Alibaba Group Holding Limited [BABA]. The present Moving Average for the last 50 days of trading for this stock 141.64, while it was recorded at 117.05 for the last single week of trading, and 185.22 for the last 200 days.

Alibaba Group Holding Limited [BABA]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Alibaba Group Holding Limited [BABA] shares currently have an operating margin of +12.74 and a Gross Margin at +39.78. Alibaba Group Holding Limited’s Net Margin is presently recorded at +20.96.

Return on Total Capital for BABA is now 7.97, given the latest momentum, and Return on Invested Capital for the company is 15.05. Return on Equity for this stock inclined to 17.74, with Return on Assets sitting at 9.99. When it comes to the capital structure of this company, Alibaba Group Holding Limited [BABA] has a Total Debt to Total Equity ratio set at 19.35. Additionally, BABA Total Debt to Total Capital is recorded at 16.22, with Total Debt to Total Assets ending up at 10.73. Long-Term Debt to Equity for the company is recorded at 17.49, with the Long-Term Debt to Total Capital now at 14.65.

Reflecting on the efficiency of the workforce at the company, Alibaba Group Holding Limited [BABA] managed to generate an average of $683,499 per employee. Receivables Turnover for the company is 13.81 with a Total Asset Turnover recorded at a value of 0.48.Alibaba Group Holding Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

Earnings per share (EPS) analysis for Alibaba Group Holding Limited [BABA] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BABA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Alibaba Group Holding Limited go to 6.75%.

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Alibaba Group Holding Limited [BABA]: Insider Ownership positions

There are presently around $69,474 million, or 24.00% of BABA stock, in the hands of institutional investors. The top three institutional holders of BABA stocks are: GOLDMAN SACHS GROUP INC with ownership of 47,977,858, which is approximately 57.295% of the company’s market cap and around 26.22% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 28,076,447 shares of the stock with an approximate value of $3.34 billion in BABA stocks shares; and HSBC HOLDINGS PLC, currently with $2.04 billion in BABA stock with ownership of nearly 299.2% of the company’s market capitalization.

Positions in Alibaba Group Holding Limited stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 626 institutional holders increased their position in Alibaba Group Holding Limited [NYSE:BABA] by around 85,952,305 shares. Additionally, 1,184 investors decreased positions by around 168,371,841 shares, while 171 investors held positions by with 330,526,892 shares. The mentioned changes placed institutional holdings at 584,851,038 shares, according to the latest SEC report filing. BABA stock had 115 new institutional investments in for a total of 4,289,185 shares, while 450 institutional investors sold positions of 23,463,835 shares during the same period.