Citigroup's long position in Alibaba Group increases to 5.60% on July 14 from 3.66% - HKEX

Citigroup's long position in Alibaba Group increases to 5.60% on July 14 from 3.66% - HKEX

Citigroup has significantly increased its long position in Alibaba Group Holding Limited (NYSE: BABA), with its stake rising to 5.60% on July 14, up from 3.66% previously. This substantial increase highlights Citigroup's growing confidence in Alibaba Group's prospects despite recent market fluctuations.

The move comes as Alibaba Group continues to face challenges, including a recent reduction in its dividend payout. The company announced a dividend cut, reducing the payout to $0.95 per share, effective on July 10 [1]. Despite this, institutional investors, including hedge funds and other institutional investors, have been actively increasing their holdings in Alibaba Group. For instance, BluePointe Capital Management LLC bought a new stake valued at approximately $354,000 in the first quarter [2].

The increase in Citigroup's stake coincides with a surge in call options trading for Alibaba Group. On Tuesday, July 15, stock traders acquired 316,857 call options, a 34% increase from the typical daily volume of 236,793 call options [1]. This unusual trading activity suggests that investors are positioning themselves for potential upside in Alibaba Group's stock price.

Analyst ratings also reflect a mix of optimism and caution. While several analysts have maintained a "buy" rating, others have downgraded their recommendations. For example, Arete Research downgraded Alibaba Group from a "strong-buy" to a "hold" rating on June 24 [1]. Despite these mixed signals, the overall consensus rating for Alibaba Group remains "Moderate Buy" with an average price target of $153.13 [1].

Alibaba Group's stock performance has been volatile, with a 1-year low of $73.87 and a 1-year high of $148.43. The company's market cap stands at $279.59 billion, with a price-to-earnings ratio of 15.73 and a debt-to-equity ratio of 0.19 [1]. The recent increase in Citigroup's position suggests that the firm believes in Alibaba Group's long-term potential, despite current market conditions.

References:
[1] https://www.marketbeat.com/instant-alerts/alibaba-group-target-of-unusually-large-options-trading-nysebaba-2025-07-15/
[2] https://www.marketbeat.com/instant-alerts/filing-bluepointe-capital-management-llc-takes-354000-position-in-alibaba-group-holding-limited-nysebaba-2025-07-15/