Investors Buy Large Volume of Alibaba Group Call Options (NYSE:BABA)

Alibaba Group Holding Limited (NYSE:BABA) was the recipient of some unusual options trading activity on Thursday. Investors acquired 272,236 call options on the company. This is an increase of approximately 26% compared to the typical daily volume of 216,456 call options.

Alibaba Group Stock Performance

Shares of BABA traded down $2.81 during midday trading on Friday, reaching $87.77. 10,394,267 shares of the stock were exchanged, compared to its average volume of 17,593,230. The company has a market capitalization of $210.16 billion, a price-to-earnings ratio of 22.98, a PEG ratio of 0.41 and a beta of 0.35. Alibaba Group has a twelve month low of $66.63 and a twelve month high of $117.82. The business’s 50-day moving average price is $98.04 and its 200 day moving average price is $85.47. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.41 and a quick ratio of 1.41.

Alibaba Group (NYSE:BABA) last announced its quarterly earnings results on Thursday, August 15th. The specialty retailer reported $16.44 EPS for the quarter, topping the consensus estimate of $1.87 by $14.57. The business had revenue of $243.24 billion for the quarter, compared to analyst estimates of $248.32 billion. Alibaba Group had a return on equity of 12.08% and a net margin of 7.31%. The company’s quarterly revenue was up 3.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.47 EPS. On average, sell-side analysts expect that Alibaba Group will post 8.51 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Morgan Stanley reaffirmed an “equal weight” rating and set a $90.00 price objective on shares of Alibaba Group in a research report on Friday, August 23rd. Macquarie upgraded Alibaba Group from a “neutral” rating to an “outperform” rating and set a $145.00 target price on the stock in a report on Monday, October 7th. Bank of America lifted their target price on Alibaba Group from $106.00 to $124.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Susquehanna decreased their price objective on Alibaba Group from $135.00 to $130.00 and set a “positive” rating for the company in a report on Monday, August 19th. Finally, Barclays lifted their price target on Alibaba Group from $107.00 to $137.00 and gave the company an “overweight” rating in a research report on Tuesday, October 15th. Three analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. According to data from MarketBeat, Alibaba Group has an average rating of “Moderate Buy” and an average price target of $114.53.

Institutional Trading of Alibaba Group

Several large investors have recently added to or reduced their stakes in the stock. Primecap Management Co. CA lifted its position in shares of Alibaba Group by 5.2% during the second quarter. Primecap Management Co. CA now owns 21,870,987 shares of the specialty retailer’s stock worth $1,574,711,000 after purchasing an additional 1,074,175 shares during the last quarter. Sanders Capital LLC grew its position in Alibaba Group by 0.3% during the 3rd quarter. Sanders Capital LLC now owns 18,460,434 shares of the specialty retailer’s stock worth $1,959,021,000 after purchasing an additional 60,667 shares in the last quarter. Hhlr Advisors LTD. grew its position in Alibaba Group by 64.1% during the 3rd quarter. Hhlr Advisors LTD. now owns 8,827,600 shares of the specialty retailer’s stock worth $936,785,000 after purchasing an additional 3,448,152 shares in the last quarter. Assenagon Asset Management S.A. grew its holdings in shares of Alibaba Group by 1,392.6% during the 3rd quarter. Assenagon Asset Management S.A. now owns 6,125,542 shares of the specialty retailer’s stock valued at $650,043,000 after acquiring an additional 5,715,155 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Alibaba Group by 3,180.1% in the 3rd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,857,760 shares of the specialty retailer’s stock valued at $409,385,000 after purchasing an additional 3,740,150 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors and hedge funds.

About Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others.