A significant driver of top-line growth: Alibaba Group Holding Limited (BABA)

Alibaba Group Holding Limited (NYSE: BABA) stock jumped 3.30% on Wednesday to $78.50 against a previous-day closing price of $75.99. With 18.99 million shares changed hands, the volume of the stock remained lighter than its average volume of 24.06 million shares. During the session, the Internet Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $78.85 whereas the lowest price it dropped to was $76.85. The 52-week range on BABA shows that it touched its highest point at $138.70 and its lowest point at $58.01 during that stretch. It currently has a 1-year price target of $134.77. Beta for the stock currently stands at 0.53.

China Can't Stop US$0.25 Stock from Mining Ultra-Rare Metal

Here's one little-known company — trading undiscovered below 25-cents per share — that's advancing one of the largest and highest quality REE deposits in all of North America... and the Chinese can't do a damn thing about it! It's early stage... and that's excellent news for individual investors like you who have the foresight to act decisively on an emerging megatrend that's already being measured in the Tens of $Billions.

Simply click here and the name & trading symbol are yours.


Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BABA was up-trending over the past week, with a rise of 0.43%, but this was up by 24.17% over a month. Three-month performance dropped to -21.41% while six-month performance fell -4.63%. The stock lost -41.27% in the past year, while it has lost -33.92% so far this year. A look at the trailing 12-month EPS for BABA yields 0.69 with Next year EPS estimates of 60.31. For the next quarter, that number is 16.52. This implies an EPS growth rate of -58.40% for this year and 14.77% for next year. EPS is expected to grow by 2.59% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 6.00%.

Float and Shares Shorts:

At present, 2.65 billion BABA shares are outstanding with a float of 2.65 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 58.58 million, which was 2.21% higher than short shares on Sep 14, 2022. In addition to Mr. Joseph C. Tsai as the firm’s Exec. Vice Chairman, Mr. Yong Zhang serves as its CEO & Exec. Chairman.

Institutional Ownership:

Through their ownership of 16.39% of BABA’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.31% of BABA, in contrast to 5.95% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BABA with 0.66% of the stake, PRIMECAP Management Co. holds 17,386,207 shares worth 17,386,207. A second-largest stockholder of BABA, Dodge & Cox, holds 14,174,270 shares, controlling over 0.54% of the firm’s shares. HSBC Global Asset Management is the third largest shareholder in BABA, holding 13,417,603 shares or 0.51% stake. With a 0.37% stake in BABA, the Vanguard PRIMECAP Fund is the largest stakeholder. A total of 9,913,817 shares are owned by the mutual fund manager. The Dodge & Cox International Stock F, which owns about 0.33% of BABA stock, is the second-largest Mutual Fund holder. It holds 8,789,200 shares valued at 558.82 million. Goldman Sachs GQG Partners Intern holds 0.14% of the stake in BABA, owning 3,755,192 shares worth 238.76 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BABA since 56 analysts follow the stock currently. There are 43 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 7 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BABA analysts setting a high price target of $1,553.85 and a low target of $503.95, the average target price over the next 12 months is $933.19. Based on these targets, BABA could surge 1879.43% to reach the target high and rise by 541.97% to reach the target low. Reaching the average price target will result in a growth of 1088.78% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BABA will report FY 2023 earnings on 05/18/2023. Analysts have provided yearly estimates in a range of $63.59 being high and $42.74 being low. For BABA, this leads to a yearly average estimate of $53.13. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Alibaba Group Holding Limited surprised analysts by $0.12 when it reported $1.81 EPS against a consensus estimate of $1.69. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $22.38 and the low estimate is $13.20. The average estimate for the next quarter is thus $17.09.

Leave a Comment

Your email address will not be published. Required fields are marked *




The 5 Best Inflation Stocks for 2022

100% free. stop anytime no spam

Get our free report on the stocks that we recommend for investors who want to protect their portfolios from inflation.

Receive Best Stock To Trade Before The Opening Bell



100% Free. Stop Anytime. No Spam