The stock of Alibaba Group Holding Limited (NYSE:BABA) increased by $2.42 on Monday to finish at $92.24, up 2.69 percent. The last five days have seen an average of 12,095,500 shares of common stock traded. 11 times new highs were reached in the current year, with a gain of $4.15. The average number of shares traded over the last 20 days was 17,684,805, while the average volume over the last 50 days totaled 18,594,316.
BABA stock dropped -8.26% since last month. On 08/18/23, the company’s shares reached a one-month low of $86.86. The stock touched a high of $121.30 on 01/26/23, after rallying from a low of $58.01 in 52 weeks. The price of BABA stock has risen by 4.71% or $4.15 this year, reaching a new high 11 times. Still, the stock price is down -23.96% from the 52-week high.
Valuation Metrics
Alibaba Group Holding Limited (BABA) has a trailing price-to-earnings (P/E) ratio of 20.68. Beta for the stock is 0.71. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.89, the price-to-book (PB) ratio of 1.70.
Financial Health
For the three months ended June 29, Alibaba Group Holding Limited’s quick ratio was 1.90, while its current ratio was 1.90, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.16, and the total debt to equity ratio is 0.16. As far as profitability goes, gross margin for the trailing twelve months is 37.30% percent. Alibaba Group Holding Limited’s EBITDA margin for the year ended June 29 was 16.39%, whereas its operating margin stood at 13.10% for the same period. Based on annual data, it had gross profit of $46.45 billion and revenue of $126.49 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 4.80%. There was a 7.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.60%.
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 $126.49 billion, while revenues fell by -6.38% to $0.0. It was predicted that Alibaba Group Holding Limited’s quarterly earnings would be $2.41, but it ended up being $2.02, beating the consensus by 19.30%. EBITDA was $6.14 billion for the quarter. At the end of Alibaba Group Holding Limited’s most recent quarter ended June 29, its liabilities totaled 88.22 billion, while its total debt was $196.32 billion.
Technical Picture
Here’s a quick look at Alibaba Group Holding Limited’s (BABA) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 52.42%, suggesting the stock is Neutral, with a 29.87% historical volatility rate.
The stochastic %K and %D were 23.56% and 18.71% respectively, while the average true range (ATR) was 2.80. Based on the 14-day stochastic reading of 35.91%, the RSI (14) reading is 50.53%. On the 9-day MACD Oscillator, the stock is at 0.89, and the 14-day reading is at -1.06.
Analyst Ratings
In its most recent analyst report, DZ Bank raised its rating on Alibaba Group Holding Limited (NYSE: BABA) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Alibaba Group Holding Limited (BABA) an Buy rating. BABA is a stock that is recommended for selling by 2 brokerage firms, while 6 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 7 rates it overweight and 45 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 $573.10 and $1363.21, with a median target price of $1023.23. In analyzing these forecasts, the average price target given by analysts for Alibaba Group Holding Limited (BABA) is $1009.08.
