Alibaba announces $6 billion buyback but misses EPS forecast

Cornelia Mascio
Mag 19, 2017

Shares of Alibaba (BABA) were down nearly 4% to $116.37 in early morning trading on Thursday as investors focused more on the Chinese internet giant's lower-than-expected earnings for the 2016 fourth quarter, rather than its significant top-line growth. The company has grown 18.88% in past 3 months and in the last five trades has moved up 0.62%. The deal will bring a broader set of merchants into the online healthcare community, while the company will obtain more stable and sustainable revenue growth, the Hong Kong-listed firm added. Drilling down, the stock is 8.53% for the past month and 0.62% for the week. The short interest to Alibaba Group Holding Limited's float is 10.25%. Ayalon Holdings Ltd. increased its position in Alibaba Group Holding by 28.7% in the third quarter.

Total profits in the quarter were $1.5bn, up 98% year-on-year. Wilbanks Smith & Thomas Asset Management LLC now owns 2,563 shares of the specialty retailer's stock valued at $276,000 after buying an additional 23 shares during the last quarter.

Alibaba Group Holding Ltd (NYSE:BABA) traded up 0.46% on Thursday, reaching $121.27. Tt International who had been investing in Alibaba Group Hldg Ltd for a number of months, seems to be less bullish one the $290.71 billion market cap company. The stock stands -3.74% below the average-price of 50 days and -3.04% compared with the SMA 20.

Alibaba Group Holding Limited (BABA) belongs to the "Services" sector with an industry focus on "Specialty Retail, Other", with Mr. Yun Ma as Founder and Exec. Chairman. If you are accessing this news story on another site, it was stolen and republished in violation of United States and worldwide copyright law.

Alibaba Group Holding Limited (BABA) now has P/E (Price to Earnings) ratio of 57.06 while the company's industry has 35.65 P/E and the sector P/E is 17.02.

Let's have a look at some of the important valuation ratios of the Alibaba Group Holding Limited (BABA).

Brokerage houses, on average, are recommending investors to hold Genpact Limited (G)'s shares projecting a $27.82 target price. Finally, Cantor Fitzgerald raised their target price on shares of Alibaba Group Holding to $120.00 in a report on Wednesday, January 25th. They issued an "overweight" rating and a $134.00 price objective on the stock. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 65 cents per share. Finally, Standpoint Research cut shares of Alibaba Group Holding from a "buy" rating to a "reduce" rating in a research note on Thursday, April 20th. Consensus earnings estimates are far from flawless, but they are watched by many investors and play an important role in measuring the appropriate valuation for a stock.

The target price for Alibaba Group Holding Limited (BABA) is $130.28/share according to the consensus of analysts working on the stock, with an expected EPS of $0.66/share for the current quarter. Price targets frequently change, depending on the outlook for a company's earnings.

But for the financial year that closed in March they declined about 40%, a drop the firm attributed largely to its film division, Alibaba Pictures Group.

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