Should Investors Pay Attention To These Insider Trades For Alibaba Group Holding Limited (BABA)?

The stock of Alibaba Group Holding Limited (NYSE:BABA) increased by increased by $0.28 on Friday to finish at $177.70, up 0.16 percent. The last five days have seen an average of 24,690,041 shares of common stock traded. 10 times new highs were reached in the current year, with a fall of -$55.03. The average number of shares traded over the last 20 days was 24,151,480, while the average volume over the last 50 days totaled 28,302,445.

BABA stock appreciated 17.53% since last month. On 10/04/21, the company’s shares reached a one-month low of $138.43. The stock touched a high of $319.32 on 02/16/21, after rallying from a low of $138.43 in 52 weeks. The price of BABA stock has declined by -23.65% or -$55.03 this year, reaching a new high 10 times. Still, the stock price is down -44.35% from the 52-week high.


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Valuation Metrics

Alibaba Group Holding Limited (BABA) has a trailing price-to-earnings (P/E) ratio of 21.15. This level actually compares favorably with the industry at large, as the PE for the Internet Retail industry stands at about 44.93. Further, its PE also compares favorably with the Consumer Cyclical sector’s trailing 12 months PE ratio, which comes in at 32.04 right now. The PE ratio of Alibaba Group Holding Limited has varied between 62.67 and 17.24 in the last five years. Beta for the stock is 0.89. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.01, the price-to-book (PB) ratio of 3.17, and the price-to-cash flow ratio of 17.46.

For the three months ended June 29, Alibaba Group Holding Limited’s quick ratio was 1.80, while its current ratio was 1.80, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.14, and the total debt to equity ratio is 0.15. As far as profitability goes, gross margin for the trailing twelve months is 40.10% percent. Alibaba Group Holding Limited’s EBITDA margin for the year ended June 29 was 19.30%, whereas its operating margin stood at 11.20% for the same period. Based on annual data, it had gross profit of $45.19 billion and revenue of $109.48 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. BABA’s return on assets (ROA) during the last 12 months has been 9.10%. There was a 1.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 16.00%. ROE has averaged 10.33 in the past year for the broader industry.

Earnings Surprise

According to Alibaba Group Holding Limited’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $109.48 billion, while revenues rose by 34.25% to $0.0. It was predicted that Alibaba Group Holding Limited’s quarterly earnings would be $2.57, but it ended up being $2.23, beating the consensus by 15.20%. EBITDA was $4.78 billion for the quarter. At the end of Alibaba Group Holding Limited’s most recent quarter ended June 29, its liabilities totaled 93.7 billion, while its total debt was $179.91 billion.

Technical Picture

Here’s a quick look at Alibaba Group Holding Limited’s (BABA) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 76.34%, suggesting the stock is Overbought, with a 31.13% historical volatility rate.

The stochastic %K and %D were 89.27% and 91.43% respectively, while the average true range (ATR) was 5.69. Based on the 14-day stochastic reading of 89.77%, the RSI (14) reading is 66.73%. On the 9-day MACD Oscillator, the stock is at 6.18, and the 14-day reading is at 12.43.

Analyst Ratings

Alibaba Group Holding Limited (NYSE: BABA) was downgraded by Raymond James to a an Outperform rating in its latest research report. The stock was previously rated as a a Strong buy. Analysts have assigned Alibaba Group Holding Limited (BABA) an Buy rating. BABA is a stock that is recommended for selling by 1 brokerage firm, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 7 rates it overweight and 41 others recommend it as a buy.

What is BABA’s price target for the next 12 months?

The current consensus forecast for the stock is between $229.00 and $2171.15, with a median target price of $1552.31. In analyzing these forecasts, the average price target given by analysts for Alibaba Group Holding Limited (BABA) is $1522.03.

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