What Next for Alibaba Group Holding Ltd Stock After Today’s Bearish Options Activity?


 What Next for Alibaba Group Holding Ltd Stock 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 7.86 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 earnings per share, up 13.16% or $0.05 from last year’s $0.38 per share. BABA’s profit will be $1.06B for 61.16 P/E if the $0.43 EPS becomes a reality. After $0.52 actual earnings per share 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 -0.90% below today’s ($105.21) stock price. Alibaba has been the topic of 83 analyst reports since August 12, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating given on Friday, August 12 by Suntrust Robinson. The firm has “Hold” rating by Standpoint Research given on Thursday, October 29. Deutsche Bank maintained the stock with “Buy” rating in Friday, August 12 report. RBC Capital Markets maintained the shares of BABA in a report on Friday, January 29 with “Outperform” rating. The stock of Alibaba Group Holding Ltd (NYSE:BABA) earned “Strong Sell” rating by Zacks on Tuesday, September 1. The stock has “Overweight” rating given by JP Morgan on Friday, August 12. Credit Suisse maintained it with “Outperform” rating and $100 target price in Friday, May 6 report. The firm has “Hold” rating by TH Capital given on Friday, August 14. The rating was maintained by JP Morgan with “Overweight” on Saturday, August 22. The stock of Alibaba Group Holding Ltd (NYSE:BABA) earned “Buy” rating by Cantor Fitzgerald on Wednesday, September 9.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $259.27 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 37.28 P/E ratio. It operates through the provision of online and mobile commerce and related services segment.

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