Investors were taken aback on January 4, 2024, when an unusual and sizable block of Put contracts in Alibaba Group Holding Limited – Depositary Receipt () (BABA) worth $10,646.60K was sold, with a strike price of $135.00 per share, set to expire in 15 days. The premium spent on this trade was a whopping 2.06 sigmas above the mean, placing it in the 99.98th percentile of all recent large trades made in BABA options, according to data tracked by Fintel’s real-time Options Flow tool.
Understanding Fund Sentiment
Fundamentally, there are 1963 funds or institutions reporting positions in Alibaba Group Holding Limited, marking a significant increase of 405 owners or 25.99% in the last quarter. The average portfolio weight of all funds dedicated to BABA experienced an upswing of 25.43%, with total shares owned by institutions rising by a staggering 152.23% in the last three months to 1,123,422K shares. The put/call ratio of BABA is currently 0.39, indicating a bullish outlook.
Analyst Price Forecast and Projected Revenue
The projected annual revenue for Alibaba Group Holding Limited stands at 991,825MM, signifying an upbeat 8.41% increase. The estimated annual non-GAAP EPS is 62.78. As of December 16, 2023, the average one-year price target for BABA is $128.43. The forecasts range from a low of $87.87 to a high of $165.90, representing a potential upside of 67.69% from the latest reported closing price of $76.59.
Recent filings indicate that various major institutional shareholders have made significant adjustments to their holdings in Alibaba Group Holding Limited. For instance, Vanguard Emerging Markets Stock Index Fund Investor Shares (VEIEX) decreased its portfolio allocation in BABA by 10.93% over the last quarter. Conversely, iShares Core MSCI Emerging Markets ETF (IEMG) raised its portfolio allocation in BABA by 23.91% over the same period.
Background Information on Alibaba Group Holding
Alibaba Group’s mission is to make it easy to do business anywhere, aiming to build the future infrastructure of commerce. The company envisions that its customers will meet, work, and live at Alibaba, aspiring to be a lasting entity for 102 years.
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