Market Analysts see Alibaba Group Holding Limited [BABA] gaining to $130. Time to buy?

Alibaba Group Holding Limited [NYSE: BABA] loss -5.00% or -4.87 points to close at $92.56 with a heavy trading volume of 27111179 shares. The company report on August 4, 2022 that Alibaba Group Announces June Quarter 2022 Results.


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Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988, “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended June 30, 2022.

“During the past quarter, we actively adapted to changes in the macro environment and remained focused on our long-term strategy by continuing to strengthen our capability for customer value creation,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group. “Following a relatively slow April and May, we saw signs of recovery across our businesses in June. We are confident in our growth opportunities in the long term given our high-quality consumer base and the resilience of our diversified business model catering to different demands of our customers.”.

It opened the trading session at $93.07, the shares rose to $94.17 and dropped to $90.7301, the range by which the price of stock traded the whole day. The daily chart for BABA points out that the company has recorded -25.03% loss over the past six months. However, it is still -26.31% lower than its most recent low trading price.

If we look at the average trading volume of 28.38M shares, BABA reached to a volume of 27111179 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $157.70 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 1.90. 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.

Bernstein have made an estimate for Alibaba Group Holding Limited shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 20, 2022. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $75 to $130. The new note on the price target was released on May 16, 2022, representing the official price target for Alibaba Group Holding Limited stock. Previously, the target price had yet another raise to $185, while Goldman analysts kept a Buy rating on BABA stock.

The Average True Range (ATR) for Alibaba Group Holding Limited is set at 5.63, with the Price to Sales ratio for BABA stock in the period of the last 12 months amounting to 2.08. The Price to Book ratio for the last quarter was 1.73, with the Price to Cash per share for the same quarter was set at 24.17.

Trading performance analysis for BABA stock

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 3.57. With this latest performance, BABA shares dropped by -24.37% in over the last four-week period, additionally sinking by -25.03% over the last 6 months – not to mention a drop of -53.55% 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 38.79, with the RSI for the last a single of trading hit 36.00, and the three-weeks RSI is set at 41.89 for Alibaba Group Holding Limited [BABA]. The present Moving Average for the last 50 days of trading for this stock 104.58, while it was recorded at 93.73 for the last single week of trading, and 115.48 for the last 200 days.

Alibaba Group Holding Limited [BABA]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Alibaba Group Holding Limited [BABA] shares currently have an operating margin of +11.20 and a Gross Margin at +35.49. Alibaba Group Holding Limited’s Net Margin is presently recorded at +7.26.

Return on Total Capital for BABA is now 7.59, given the latest momentum, and Return on Invested Capital for the company is 5.61. Return on Equity for this stock inclined to 6.58, with Return on Assets sitting at 3.67. 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 18.62. Additionally, BABA Total Debt to Total Capital is recorded at 15.70, with Total Debt to Total Assets ending up at 10.42. Long-Term Debt to Equity for the company is recorded at 17.16, with the Long-Term Debt to Total Capital now at 14.47.

Reflecting on the efficiency of the workforce at the company, Alibaba Group Holding Limited [BABA] managed to generate an average of $294,809 per employee. Receivables Turnover for the company is 13.31 with a Total Asset Turnover recorded at a value of 0.51.Alibaba Group Holding Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.70.

Alibaba Group Holding Limited [BABA]: An earnings per share (EPS) analysis

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 2.02%.

An analysis of insider ownership at Alibaba Group Holding Limited [BABA]

There are presently around $37,845 million, or 16.70% 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 22,711,922, which is approximately -42.777% of the company’s market cap and around 0.01% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 17,358,547 shares of the stock with an approximate value of $1.61 billion in BABA stocks shares; and FISHER ASSET MANAGEMENT, LLC, currently with $1.34 billion in BABA stock with ownership of nearly 1.809% of the company’s market capitalization.

Positions in Alibaba Group Holding Limited stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 582 institutional holders increased their position in Alibaba Group Holding Limited [NYSE:BABA] by around 52,135,840 shares. Additionally, 711 investors decreased positions by around 116,103,171 shares, while 212 investors held positions by with 240,631,005 shares. The mentioned changes placed institutional holdings at 408,870,016 shares, according to the latest SEC report filing. BABA stock had 149 new institutional investments in for a total of 9,391,860 shares, while 184 institutional investors sold positions of 23,798,347 shares during the same period.

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