Baidu (NASDAQ:BIDU) Shares Gap Up on Analyst Upgrade

Key Points

• Baidu's stock jumped from a closing price of $123.79 to an opening price of $133.85 after Arete Research upgraded its rating from sell to buy, with a new price target of $143.00.
• The stock is currently trading at approximately $132.87 with a significant trading volume of over 5.6 million shares.
• Despite the upgrade, Baidu's average rating remains a Hold from analysts, with plans from various firms indicating mixed sentiments on the company's stock.

Baidu, Inc. (NASDAQ:BIDU - Get Free Report) gapped up prior to trading on Wednesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock had previously closed at $123.79, but opened at $133.85. Baidu shares last traded at $132.87, with a volume of 5,666,549 shares changing hands.

Several other research analysts have also issued reports on the company. Wall Street Zen lowered Baidu from a "hold" rating to a "sell" rating in a research report on Friday, August 22nd. Susquehanna raised their price target on Baidu from $85.00 to $95.00 and gave the stock a "neutral" rating in a research note on Tuesday, September 2nd. Macquarie reiterated a "neutral" rating on shares of Baidu in a research report on Wednesday, May 21st. Arete upgraded Baidu from a "sell" rating to a "buy" rating and set a $143.00 price objective on the stock in a research report on Tuesday, September 16th. Finally, Benchmark lowered their price objective on Baidu from $120.00 to $115.00 and set a "buy" rating on the stock in a research report on Thursday, August 21st. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Baidu presently has an average rating of "Hold" and an average target price of $114.27.

Institutional Trading of Baidu

Hedge funds and other institutional investors have recently made changes to their positions in the company. Creekmur Asset Management LLC acquired a new stake in Baidu in the 1st quarter valued at approximately $29,000. Assetmark Inc. increased its holdings in Baidu by 143.3% in the 1st quarter. Assetmark Inc. now owns 326 shares of the information services provider's stock valued at $30,000 after purchasing an additional 192 shares during the last quarter. Binnacle Investments Inc purchased a new position in Baidu in the 2nd quarter valued at approximately $29,000. UMB Bank n.a. boosted its position in Baidu by 80.3% in the 1st quarter. UMB Bank n.a. now owns 402 shares of the information services provider's stock valued at $37,000 after buying an additional 179 shares during the period. Finally, Winthrop Capital Management LLC purchased a new position in Baidu in the 2nd quarter valued at approximately $39,000.

Baidu Price Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.85 and a current ratio of 1.85. The company has a market cap of $46.76 billion, a PE ratio of 12.47 and a beta of 0.34. The company's 50-day simple moving average is $96.05 and its 200 day simple moving average is $90.76.

About Baidu

Baidu, Inc engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app.