Alibaba Group Holding Limited (NYSE:BABA) is one of the worst performers on the stock market today. At current price of $206.57, the shares have already lost -7.18 points (-3.36% lower) from its previous close of $213.75. Should you buy or avoid them? The stock sets an active trading volume day with a reported 16865251 contracts so far this session. BABA shares had a relatively better volume day versus average trading capacity of 15.87 million shares, but with a 0.21 billion float and a -4.55% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BABA stock indicates that the average analyst price target is $233.74 per share. This means the stock has a potential increase of 13.15% from where the BABA share price has been trading recently.
Looking at the current readings for Alibaba Group Holding Limited, the two-week RSI stands at 39.18. This figure suggests that BABA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current BABA readings is similarly very revealing as it has a stochastic reading of 20.51% at this stage. This figure means that BABA share price today is being overbought.
Technical chart claims that Alibaba Group Holding Limited (BABA) would settle between $218.61/share to $223.47/share level. However, if the stock price goes below the $210.11 mark, then the market for Alibaba Group Holding Limited becomes much weaker. If that happens, the stock price might even plunge as low as $206.46 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -7.81. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at DZ Bank, assumed coverage of BABA assigning Buy rating, according to their opinion released on January 22. Macquarie, analysts launched coverage of Alibaba Group Holding Limited (NYSE:BABA) stock with a Outperform recommendation, according to their flash note issued to investors on November 22. Analysts at HSBC Securities are sticking to their Buy stance. However, on October 04, they lifted price target for these shares to $233 from $230.
BABA equity has an average rating of 1.85, with the figure leaning towards a bullish end. 47 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 46 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 46 analysts rated Alibaba Group Holding Limited (NYSE:BABA) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, BABA stock price is currently trading at 23.66X forward 12-month Consensus EPS estimates, and its P/E ratio is 25.4 while for the average stock in the same group, the multiple is 52.8. Alibaba Group Holding Limited current P/B ratio of 6.6 means it is trading at a discount against its industry’s 11.