Alibaba Group Holding Limited (BABA) Insider Sell/Buy Ratio Soars Well Into Bullish Territory

The 12-month median price target for Alibaba Group Holding Limited (BABA) assigned by the analysts stands at $200, which represents a return potential of 32.17 percent when compared to the closing price of the stock of $151.32 on Friday, January 11. The lowest price target for the stock is $123 — slightly more than -18.72 percent from BABA’s current share price. The stock will probably climb 34.11 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $260-month high price target. This represents a whopping 71.82 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 59.75 on daily chart, which may remain a cause for concern. If the price breaks below $148.37 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $153.09 mark may result into a pull-back move towards $154.85 level. The stock is currently hovering around the first support level of $149.85. Below this, the next support is placed in the zone of $148.37. Till the time, the BABA stock trades above this level, bulls have nothing to fear.

Shares of Alibaba Group Holding Limited (BABA) are trading at a P/E ratio of 47.23 times earnings reported for the past 12 months. The industry BABA operates in has an average P/E of 25.67. Its P/E ratio went as low as 18.27X and as high as 53.42 over the 5-year span. Further, it is sporting a 8.58 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.62. 49.2 percent is the gross profit margin for Alibaba Group Holding Limited and operating margin sits at 18.2 percent. Along with this, the net profit margin is 19.4 percent.

On 11th of January, Alibaba Group Holding Limited (NYSE:BABA) shares ended lower after a volatile session. The shares dropped -0.37 points or -0.24 percent at $151.32 with a light trade volume of 9.547 million shares. After opening the session at $151.83, the shares went as high as $153.38 and as low as $150.1401, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $393 billion and now has 2.6 billion shares outstanding. Alibaba Group Holding Limited (BABA) stock has lost -0.34 percent of market value in 21 trading days.

BABA stock has a trailing 3-year beta of 2.26, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.39 a share in the trailing twelve months. The stock’s value has surged 10.4 percent year to date (YTD) against a decline of -20.27 percent in 12 month’s time. The company’s shares still trade -28.52 percent away from its 1-year high of $211.70 and 16.61 percent up from 52-week low of $129.77. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.