Baidu Target of Unusually High Options Trading (NASDAQ:BIDU)

Key Points

• Baidu saw unusually heavy options activity on Tuesday, with traders buying 25,740 call options, about 25% above its average daily call volume.
• The stock fell sharply during the session, dropping $5.11 to $108.28, while trading volume came in below its usual level.
• Analysts remain generally constructive on Baidu, with a consensus rating of “Moderate Buy” and an average target price of $163.11, even though some firms recently trimmed targets.

Baidu, Inc. (NASDAQ:BIDU - Get Free Report) saw unusually large options trading activity on Tuesday. Traders purchased 25,740 call options on the company. This represents an increase of approximately 25% compared to the average daily volume of 20,625 call options.

Baidu Price Performance

Shares of NASDAQ:BIDU traded down $5.11 during trading on Tuesday, reaching $108.28. 1,605,435 shares of the company traded hands, compared to its average volume of 2,607,175. The company's 50 day moving average is $123.96 and its two-hundred day moving average is $128.61. The firm has a market capitalization of $36.84 billion, a PE ratio of -901.84, a PEG ratio of 2.01 and a beta of 0.56. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.22. Baidu has a 52 week low of $84.64 and a 52 week high of $165.30.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of BIDU. Signature Equity Partners LLC acquired a new stake in Baidu during the first quarter worth about $25,000. Binnacle Investments Inc acquired a new position in shares of Baidu in the 2nd quarter valued at approximately $29,000. Sankala Group LLC bought a new stake in shares of Baidu during the 4th quarter worth approximately $46,000. Brown Brothers Harriman & Co. lifted its holdings in shares of Baidu by 35.0% during the 4th quarter. Brown Brothers Harriman & Co. now owns 405 shares of the information services provider's stock worth $53,000 after acquiring an additional 105 shares during the period. Finally, UMB Bank n.a. lifted its holdings in shares of Baidu by 25.9% during the 4th quarter. UMB Bank n.a. now owns 428 shares of the information services provider's stock worth $56,000 after acquiring an additional 88 shares during the period.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on BIDU. Barclays reduced their target price on shares of Baidu from $128.00 to $124.00 and set an "equal weight" rating for the company in a report on Monday. Morgan Stanley raised their price objective on shares of Baidu from $135.00 to $140.00 in a research report on Tuesday, May 19th. Wall Street Zen upgraded shares of Baidu from a "sell" rating to a "hold" rating in a research report on Monday, May 25th. Nomura boosted their price objective on Baidu from $186.00 to $190.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Finally, Citigroup reaffirmed a "buy" rating on shares of Baidu in a research report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $163.11.

Baidu Company Profile

Baidu, Inc, founded in 2000 and headquartered in Beijing, is a Chinese multinational technology company best known for operating one of China's leading internet search engines. The company built its business around online search and related advertising services, providing search, content aggregation and targeted ad placements to consumers and marketers across China. Baidu went public on the NASDAQ in 2005 and has since diversified beyond search into a broader technology and AI-focused portfolio.

Core products and services include the Baidu search platform and mobile app, Baidu Maps and Baidu Baike (an online encyclopedia), along with digital content initiatives.

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