Could Alibaba Group Holding Ltd See a Reversal After Today’s Strong Options Activity?


 Could Alibaba Group Holding Ltd See a Reversal After Today's Strong 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. The stock increased 0.07% or $0.07 during the last trading session, hitting $105.45. About 10.39 million 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 $1.06 billion for 61.31 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 -1.13% below today’s ($105.45) stock price. Alibaba has been the topic of 83 analyst reports since August 12, 2015 according to StockzIntelligence Inc. The rating was maintained by Deutsche Bank on Monday, April 25 with “Buy”. The stock has “Overweight” rating given by Morgan Stanley on Friday, August 12. TH Capital maintained the stock with “Hold” rating in Friday, August 14 report. The firm has “Buy” rating given on Friday, April 15 by Needham. The stock of Alibaba Group Holding Ltd (NYSE:BABA) has “Outperform” rating given on Thursday, January 7 by Robert W. Baird. The rating was upgraded by Vetr on Thursday, August 13 to “Buy”. The firm earned “Outperform” rating on Thursday, August 13 by RBC Capital Markets. The stock of Alibaba Group Holding Ltd (NYSE:BABA) has “Buy” rating given on Thursday, March 24 by Deutsche Bank. The rating was maintained by Axiom Capital with “Buy” on Thursday, August 13. The stock of Alibaba Group Holding Ltd (NYSE:BABA) earned “Outperform” rating by Oppenheimer on Wednesday, October 28.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $259.86 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 37.36 P/E ratio. It operates through the provision of online and mobile commerce and related services segment.

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