Alibaba Group Holding Ltd (BABA) Shares Fall After Billionaire Investor Begins Selling His Stake


Back in March of last year, Russian Billionaire, Alisher Usmanov, who happened to be the country’s 3rd richest man, decided to sell his shares of Apple and Facebook stock and purchase shares of Alibaba Group Holding Ltd (NYSE:BABA). This played a role in sending shares of the stock soaring.

Now, however, Usmanov has decided to begin selling his stake in Alibaba Group Holding Ltd (NYSE:BABA), and the stock price has responded negatively. Can one man really have this much influence? Perhaps…

“All our investments in Chinese assets can be divided into strategic and financial,” Usmanov said Monday in an interview with Rossiya-24 state TV. “We are selling out from this company at a high level. We boosted initial investments five- to six-fold.”

The stock is down 2.29% or $1.92 following the news, hitting $81.79 per share. Approximately 3.09M shares traded hands. BABA shares have declined 10.25% since May 22, 2015 and are currently downtrending. It has underperformed the S&P500 by 7.99%.

From a total of 23 analysts covering Alibaba (NYSE:BABA) stock, 21 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 91% of the ratings are positive. The highest target price is $137 while the lowest target price is $80. The mean of all analyst targets is $93.92 which is 14.83% above today’s ($81.79) stock price. Alibaba was the topic of 50 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on October 30 with a “Buy” rating. Axiom Capital maintained shares with a”Buy” rating and a $92 target share price in their report from an October 28. Oppenheimer maintained BABA stock in a recent report from October 28 with a “Outperform” rating. Brean Capital maintained the rating on October 28. Brean Capital has a “Buy” rating and a $98 price target on shares. Finally, Wedbush maintained the stock with a “Neutral” rating in a report they issued on an October 28.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $208.76 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 21.89 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.