It Seems Alibaba Group Holding Ltd Will Go Down. Had Bearish Options Activity

 It Seems Alibaba Group Holding Ltd Will Go Down. Had 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 9.04 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 61.19 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 -0.94% below today’s ($105.25) stock price. Alibaba has been the topic of 83 analyst reports since August 12, 2015 according to StockzIntelligence Inc. The firm earned “Overweight” rating on Thursday, August 13 by Atlantic Securities. The rating was maintained by M Partners on Friday, October 30 with “Buy”. The firm has “Buy” rating given on Thursday, August 13 by Vetr. The firm has “Buy” rating given on Wednesday, September 9 by Cantor Fitzgerald. Morgan Stanley maintained the shares of BABA in a report on Friday, August 12 with “Overweight” rating. Morgan Stanley maintained the stock with “Overweight” rating in Tuesday, June 28 report. The company was initiated on Wednesday, August 31 by JP Morgan. Suntrust Robinson maintained the stock with “Buy” rating in Friday, August 12 report. The firm has “Outperform” rating given on Friday, January 29 by RBC Capital Markets. The rating was maintained by Wedbush with “Neutral” on Wednesday, October 28.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $259.37 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 37.29 P/E ratio. It operates through the provision of online and mobile commerce and related services segment.

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