FY2027 EPS Estimates for Alibaba Group Decreased by Analyst

Alibaba Group Holding Limited (NYSE:BABA) – Equities researchers at Erste Group Bank lowered their FY2027 earnings per share estimates for shares of Alibaba Group in a research report issued on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now forecasts that the specialty retailer will post earnings of $5.71 per share for the year, down from their prior estimate of $5.73. The consensus estimate for Alibaba Group’s current full-year earnings is $6.28 per share. Erste Group Bank also issued estimates for Alibaba Group’s FY2028 earnings at $8.07 EPS.

Alibaba Group (NYSE:BABA) last released its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The company had revenue of $35.30 billion for the quarter.

BABA has been the subject of a number of other reports. Morgan Stanley increased their price objective on shares of Alibaba Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Barclays lifted their target price on shares of Alibaba Group from $186.00 to $195.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. Nomura dropped their target price on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating for the company in a report on Thursday, June 25th. Wall Street Zen raised Alibaba Group from a “sell” rating to a “hold” rating in a report on Saturday, May 23rd. Finally, Freedom Capital upgraded Alibaba Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, April 24th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $186.90.

Alibaba Group Price Performance

Shares of NYSE:BABA opened at $115.04 on Friday. The company has a market capitalization of $276.18 billion, a P/E ratio of 18.89, a P/E/G ratio of 2.12 and a beta of 0.51. Alibaba Group has a 1-year low of $91.99 and a 1-year high of $192.67. The firm’s 50 day simple moving average is $116.66 and its two-hundred day simple moving average is $135.22. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Bleakley Financial Group LLC boosted its position in shares of Alibaba Group by 0.4% during the 4th quarter. Bleakley Financial Group LLC now owns 16,420 shares of the specialty retailer’s stock worth $2,407,000 after purchasing an additional 67 shares in the last quarter. Highline Wealth Partners LLC increased its holdings in shares of Alibaba Group by 20.7% in the 4th quarter. Highline Wealth Partners LLC now owns 426 shares of the specialty retailer’s stock valued at $62,000 after purchasing an additional 73 shares in the last quarter. Cypress Wealth Services LLC increased its holdings in shares of Alibaba Group by 5.6% in the 4th quarter. Cypress Wealth Services LLC now owns 1,418 shares of the specialty retailer’s stock valued at $208,000 after purchasing an additional 75 shares in the last quarter. Keybank National Association OH lifted its stake in shares of Alibaba Group by 2.7% in the fourth quarter. Keybank National Association OH now owns 2,840 shares of the specialty retailer’s stock valued at $416,000 after purchasing an additional 75 shares during the period. Finally, Cary Street Partners Investment Advisory LLC lifted its stake in shares of Alibaba Group by 4.1% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 1,915 shares of the specialty retailer’s stock valued at $281,000 after purchasing an additional 76 shares during the period. Hedge funds and other institutional investors own 13.47% of the company’s stock.

Insider Activity

In related news, CFO Hong Xu sold 175,054 shares of the company’s stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $12.15, for a total transaction of $2,126,906.10. Following the completion of the transaction, the chief financial officer owned 280,496 shares in the company, valued at approximately $3,408,026.40. This represents a 38.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Siying Yu sold 6,772 shares of the firm’s stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $12.10, for a total transaction of $81,941.20. Following the transaction, the general counsel directly owned 607,234 shares of the company’s stock, valued at $7,347,531.40. The trade was a 1.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 920,303 shares of company stock valued at $70,796,370 in the last quarter. Company insiders own 12.50% of the company’s stock.

Alibaba Group Dividend Announcement

The business also recently announced an annual dividend, which was paid on Monday, July 13th. Stockholders of record on Thursday, June 11th were issued a $1.05 dividend. This represents a dividend yield of 93.0%. The ex-dividend date of this dividend was Thursday, June 11th. Alibaba Group’s payout ratio is 16.91%.

Alibaba Group News Summary

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: China approved Apple Intelligence for use on iPhones and other Apple devices in the country, with Alibaba’s Qwen model as a key partner. That strengthens Alibaba’s position in AI and could create a meaningful catalyst for growth. Apple Intelligence approved for launch in China with Alibaba and Baidu
• Positive Sentiment: Analysts continue to view Alibaba favorably overall, with reports noting an average “Moderate Buy” recommendation. Alibaba Group Holding Limited Given Average Recommendation of “Moderate Buy” by Analysts
• Positive Sentiment: Wall Street commentary around China’s push for broader, lower-cost AI and new model launches such as Kimi K3 is reinforcing interest in the Chinese AI sector, which can spill over positively to Alibaba as a leading domestic AI name. What Is Kimi K3? The Chinese AI Model That Has Wall Street Talking
• Neutral Sentiment: Erste Group trimmed its FY2028 earnings estimate slightly for Alibaba and also nudged down FY2027 estimates, reflecting a more cautious near-term outlook rather than a major deterioration. Erste Group Bank lowered Alibaba earnings estimates
• Neutral Sentiment: Alibaba’s online travel unit reportedly cut jobs as business conditions remain weak, pointing to internal cost pressure and uneven performance in parts of the company. Alibaba’s Online Travel Arm Slashes Jobs as Business Struggles
• Negative Sentiment: Separate law firms have announced investor investigations into Alibaba, adding legal overhang and uncertainty that can weigh on the shares. Alibaba Investor News from Rosen Law Firm
• Negative Sentiment: Another legal investigation was announced by Pomerantz LLP, reinforcing concerns about potential securities claims and headline risk for BABA. Pomerantz Law Firm Investigates Claims On Behalf of Investors of Alibaba Group Holding Limited – BABA

Alibaba Group Company Profile

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.