Alibaba Group Holding Limited (BABA): A Technical View


As of Wednesday close, Alibaba Group Holding Limited’s (NYSE:BABA) stock was up $2.51, moving up 3.30 percent to $78.50. The average number of shares traded per day over the past five days has been 30,062,119 shares. 1 time new highs have been achieved over the past 5 days, with a $0.34 gain in that time frame. In the last twenty days, the average volume was 30,227,660, while in the previous 50 days, it was 25,621,129.

Since last month, BABA stock rose 24.17%. Shares of the company fell to $58.01 on 10/24/22, the lowest level in the past month. A 52-week high of $138.70 was reached on 01/12/22 after having rallying from a 52-week low of $58.01. Since the beginning of this year, BABA’s stock price has dropped by -33.92% or -$40.29, and marked a new high 6 times. However, the stock has declined by -43.40% since its 52-week high.

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Valuation Metrics

Right now, Alibaba Group Holding Limited (BABA) has a P/E ratio of about 114.43. The stock’s beta is 0.53. Besides these, the trailing price-to-sales (P/S) ratio of 1.81, the price-to-book (PB) ratio of 1.57.

Financial Health

In the three months ended September 29, Alibaba Group Holding Limited’s quick ratio stood at 1.80, while its current ratio was 1.80, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.16, and the total debt-to-equity ratio was 0.17. On the profitability front, the trailing twelve-month gross margin is 36.40% percent. In the year ended September 29, EBITDA margin amounted to 16.56%, whereas operating margins totaled 8.60%. Based on annual data, BABA earned $49.47 billion in gross profit and brought in $134.57 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.60%. Return on equity (ROE) for the past 12 months was 1.40%.

In Alibaba Group Holding Limited’s quarter-end financial report for September 29, it reported total debt of $20.71 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. BABA’s revenue rose 18.64% during the quarter, while net income inched up to $134.57 billion. While analysts expected Alibaba Group Holding Limited to report $1.63 quarterly earnings, the actual figure was $1.81 per share, beating the consensus estimate by 11.00%. During the quarter, the company generated $3.53 billion in EBITDA. The liabilities of Alibaba Group Holding Limited were 89.94 billion at the end of its most recent quarter ended September 29, and its total debt was $192.99 billion.

Technical Picture

This quick technical analysis looks at Alibaba Group Holding Limited’s (BABA) price momentum. With a historical volatility rate of 76.20%, the RSI 9-day stood at 58.55% on 23 November.

With respect to its five-day moving average, the current Alibaba Group Holding Limited price is up by +0.44% percent or $0.34. At present, BABA shares trade +14.58% above its 20-day simple moving average and -34.65% percent below its 100-day simple moving average. However, the stock is currently trading approximately -11.72% below its SMA50 and -35.60% below its SMA200.

Stochastic coefficient K was 60.95% and Stochastic coefficient D was 67.53%, while ATR was 4.40. Given the Stochastic reading of 65.61% for the 14-day period, the RSI (14) reading has been calculated as 56.02%. As of today, the MACD Oscillator reading stands at -0.16, while the 14-day reading stands at 3.00.

Analyst Ratings

Bernstein upgraded its rating on Alibaba Group Holding Limited (NYSE: BABA) to an Outperform in a note to investors on July 20, 2022. The analysts firm previously had a Mkt perform rating on the stock.Alibaba Group Holding Limited (BABA) has been rated Buy by analysts. According to 0 brokerage firms, BABA is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 7 analysts rate Alibaba Group Holding Limited stock as buy, with 43 recommending it as overweight.

With a median target price of $947.99, the current consensus forecast for the stock is $503.95 – $1553.85. Based on these forecasts, analysts predict Alibaba Group Holding Limited (BABA) will achieve an average price target of $933.19.


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