Alibaba Group Holding Ltd Has More Gas To Decrease After Today’s Bearish Options Activity

 Alibaba Group Holding Ltd Has More Gas To Decrease After Today's Bearish Options Activity

In today’s session Alibaba Group Holding Ltd (BABA) recorded an unusually high (2,467) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious BABA decrease. With 2,467 contracts traded and 30214 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: BABA161021P00097000 closed last at: $0.38 or 25.5% down. About 7.45M shares traded hands. Alibaba Group Holding Ltd (NYSE:BABA) has risen 48.72% since March 1, 2016 and is uptrending. It has outperformed by 39.47% the S&P500.

Analysts await Alibaba Group Holding Ltd (NYSE:BABA) to report earnings on October, 25. They expect $0.43 EPS, up 13.16% or $0.05 from last year’s $0.38 per share. BABA’s profit will be $1.06B for 61.23 P/E if the $0.43 EPS becomes a reality. After $0.52 actual EPS reported by Alibaba Group Holding Ltd for the previous quarter, Wall Street now forecasts -17.31% negative EPS growth.

Alibaba Group Holding Ltd (NYSE:BABA) Ratings Coverage

Out of 31 analysts covering Alibaba (NYSE:BABA), 30 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 97% are positive. $138 is the highest target while $75 is the lowest. The $104.26 average target is -1.01% below today’s ($105.32) stock price. Alibaba has been the topic of 83 analyst reports since August 12, 2015 according to StockzIntelligence Inc. The rating was maintained by Morgan Stanley on Friday, August 12 with “Overweight”. The stock of Alibaba Group Holding Ltd (NYSE:BABA) earned “Buy” rating by Standpoint Research on Thursday, January 21. Deutsche Bank maintained Alibaba Group Holding Ltd (NYSE:BABA) on Thursday, March 24 with “Buy” rating. Brean Capital maintained the shares of BABA in a report on Wednesday, October 28 with “Buy” rating. The company was maintained on Tuesday, June 28 by Morgan Stanley. RBC Capital Markets maintained the stock with “Outperform” rating in Friday, August 12 report. As per Thursday, October 29, the company rating was downgraded by Standpoint Research. JP Morgan initiated the shares of BABA in a report on Wednesday, August 31 with “Overweight” rating. The firm has “Buy” rating by Vetr given on Thursday, August 13. The company was maintained on Wednesday, October 28 by RBC Capital Markets.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $259.54 billion. The Firm is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China and internationally. It has a 37.31 P/E ratio. It operates through the provision of online and mobile commerce and related services segment.

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