What Will Happen to Alibaba Group Holding Ltd Next? The Stock Just Had Huge Bearish Options Activity

 What Will Happen to Alibaba Group Holding Ltd Next? The Stock Just Had Huge 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 5.75 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 $1.06 billion for 61.30 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 -1.11% below today’s ($105.43) stock price. Alibaba has been the topic of 83 analyst reports since August 12, 2015 according to StockzIntelligence Inc. The stock of Alibaba Group Holding Ltd (NYSE:BABA) has “Buy” rating given on Thursday, September 29 by Deutsche Bank. The stock of Alibaba Group Holding Ltd (NYSE:BABA) earned “Buy” rating by Cantor Fitzgerald on Wednesday, August 12. On Friday, October 23 the stock rating was upgraded by TH Capital to “Buy”. The firm has “Overweight” rating given on Saturday, August 29 by Morgan Stanley. Deutsche Bank maintained it with “Buy” rating and $109 target price in Monday, April 25 report. The stock of Alibaba Group Holding Ltd (NYSE:BABA) has “Strong Sell” rating given on Tuesday, September 1 by Zacks. The firm has “Buy” rating given on Wednesday, September 28 by Daiwa Securities. The rating was maintained by Wedbush with “Neutral” on Friday, January 29. As per Friday, August 12, the company rating was maintained by Suntrust Robinson. Standpoint Research initiated Alibaba Group Holding Ltd (NYSE:BABA) rating on Monday, August 24. Standpoint Research has “Buy” rating and $84.0 price target.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $259.82 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 37.35 P/E ratio. It operates through the provision of online and mobile commerce and related services segment.

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