Alibaba Group (BABA) Trading With Heavy Volume Before Market Open - TheStreet

Trade-Ideas LLC identified

Alibaba Group

(

BABA

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alibaba Group as such a stock due to the following factors:

  • BABA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.3 billion.
  • BABA traded 1.6 million shares today in the pre-market hours as of 7:45 AM, representing 10.1% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BABA with the Ticky from Trade-Ideas. See the FREE profile for BABA NOW at Trade-Ideas

More details on BABA:

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. Currently there are 19 analysts that rate Alibaba Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Alibaba Group has been 17.5 million shares per day over the past 30 days. Alibaba Group has a market cap of $177.2 billion and is part of the services sector and specialty retail industry. Shares are down 27.2% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alibaba Group as a

sell

. The area that we feel has been the company's primary weakness has been its generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • BABA has underperformed the S&P 500 Index, declining 22.53% from its price level of one year ago.
  • The gross profit margin for ALIBABA GROUP HLDG is currently very high, coming in at 70.71%. Regardless of BABA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BABA's net profit margin of 152.34% significantly outperformed against the industry.
  • Net operating cash flow has slightly increased to $1,677.42 million or 2.25% when compared to the same quarter last year. In addition, ALIBABA GROUP HLDG has also modestly surpassed the industry average cash flow growth rate of -1.88%.
  • Although BABA's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
  • ALIBABA GROUP HLDG reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($16.24 versus $1.59).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.