Baidu (NASDAQ:BIDU) Trading 5% Higher 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)'s stock price rose 5% during mid-day trading on Tuesday after Arete upgraded the stock from a sell rating to a buy rating. Arete now has a $143.00 price target on the stock. Baidu traded as high as $119.50 and last traded at $120.60. Approximately 2,484,933 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 4,564,943 shares. The stock had previously closed at $114.82.

BIDU has been the topic of several other reports. Susquehanna boosted their target price on Baidu from $85.00 to $95.00 and gave the stock a "neutral" rating in a research note on Tuesday, September 2nd. Benchmark lowered their price target on Baidu from $120.00 to $115.00 and set a "buy" rating for the company in a research report on Thursday, August 21st. Jefferies Financial Group lowered their price target on Baidu from $120.00 to $110.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Macquarie reaffirmed a "neutral" rating on shares of Baidu in a research report on Wednesday, May 21st. Finally, Wall Street Zen cut Baidu from a "hold" rating to a "sell" rating in a research report on Friday, August 22nd. Six research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, Baidu currently has a consensus rating of "Hold" and a consensus price target of $108.33.

Institutional Investors Weigh In On Baidu

Large investors have recently made changes to their positions in the stock. Marex Group plc acquired a new position in Baidu in the second quarter valued at approximately $7,200,000. Nomura Holdings Inc. increased its holdings in Baidu by 371.4% in the second quarter. Nomura Holdings Inc. now owns 87,448 shares of the information services provider's stock valued at $7,500,000 after buying an additional 119,671 shares during the last quarter. Nikko Asset Management Americas Inc. grew its holdings in shares of Baidu by 11.7% during the second quarter. Nikko Asset Management Americas Inc. now owns 167,582 shares of the information services provider's stock worth $14,370,000 after purchasing an additional 17,575 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Baidu by 4,715.6% during the second quarter. Tower Research Capital LLC TRC now owns 14,543 shares of the information services provider's stock worth $1,247,000 after buying an additional 14,241 shares during the last quarter. Finally, Binnacle Investments Inc purchased a new position in shares of Baidu during the second quarter worth about $29,000.

Baidu Stock Performance

The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.19. The stock has a fifty day moving average of $92.49 and a 200-day moving average of $89.52. The stock has a market cap of $41.71 billion, a PE ratio of 11.11 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.

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