Baidu (NASDAQ:BIDU) Shares Up 5% Following Analyst Upgrade

Key Points

• Baidu's stock price surged 5% after an analyst upgrade from Arete, which raised its rating from sell to buy with a price target of $143.00.
• Despite the recent rise, analysts have mixed ratings, with six rating it buy and eleven issuing a hold rating, while the consensus price target is $108.33.
• Significant increases in institutional investments were noted, including a 371.4% increase in holdings by Nomura Holdings Inc. and new acquisitions from Marex Group plc and others during the second quarter.

Baidu, Inc. (NASDAQ:BIDU - Get Free Report) rose 5% during mid-day trading on Tuesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock traded as high as $119.50 and last traded at $120.60. Approximately 2,484,933 shares traded hands during trading, a decline of 46% from the average daily volume of 4,564,943 shares. The stock had previously closed at $114.82.

A number of other equities analysts have also commented on BIDU. Susquehanna raised their price objective on shares of Baidu from $85.00 to $95.00 and gave the stock a "neutral" rating in a research note on Tuesday, September 2nd. Citigroup lifted their price target on Baidu from $138.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, July 17th. Arete Research upgraded Baidu from a "sell" rating to a "buy" rating and set a $143.00 price objective for the company in a research report on Tuesday. Benchmark lowered their target price on Baidu from $120.00 to $115.00 and set a "buy" rating on the stock in a research note on Thursday, August 21st. Finally, Macquarie reissued a "neutral" rating on shares of Baidu in a research report on Wednesday, May 21st. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $114.27.

Institutional Trading of Baidu

Hedge funds and other institutional investors have recently modified their holdings of the company. Primecap Management Co. CA raised its holdings in Baidu by 1.4% during the second quarter. Primecap Management Co. CA now owns 12,116,750 shares of the information services provider's stock valued at $1,039,132,000 after buying an additional 170,414 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its holdings in Baidu by 1,377.5% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,324,728 shares of the information services provider's stock valued at $490,035,000 after buying an additional 4,964,350 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Baidu by 0.9% during the first quarter. Dimensional Fund Advisors LP now owns 1,361,973 shares of the information services provider's stock valued at $125,338,000 after buying an additional 11,658 shares in the last quarter. RPD Fund Management LLC raised its holdings in Baidu by 161.6% during the second quarter. RPD Fund Management LLC now owns 1,258,856 shares of the information services provider's stock valued at $107,959,000 after buying an additional 777,570 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its holdings in Baidu by 2.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 1,037,626 shares of the information services provider's stock valued at $95,494,000 after buying an additional 25,834 shares in the last quarter.

Baidu Trading Up 0.1%

The company has a fifty day simple moving average of $96.05 and a two-hundred day simple moving average of $90.77. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.85 and a quick ratio of 1.85. The company has a market capitalization of $46.76 billion, a P/E ratio of 12.47 and a beta of 0.34.

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.