Primecap Management Co. CA Sells 46,700 Shares of Baidu, Inc. $BIDU

Key Points

• Primecap Management reduced its Baidu stake by 46,700 shares in the second quarter, leaving it with 11.01 million shares worth approximately $1.26 billion, or 3.24% of the company.
• Baidu shares opened at $93.43, near the lower end of their 52-week range of $88.66 to $165.30, with the stock down substantially from its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans positive: Baidu has a consensus “Moderate Buy” rating and a $156.83 average price target, despite some firms lowering targets and one downgrade to “Underweight.”

Primecap Management Co. CA lessened its position in Baidu, Inc. (NASDAQ:BIDU - Free Report) by 0.4% in the second quarter, according to its most recent disclosure with the SEC. The firm owned 11,010,100 shares of the information services provider's stock after selling 46,700 shares during the period. Primecap Management Co. CA owned approximately 3.24% of Baidu worth $1,258,344,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Signature Equity Partners LLC bought a new position in shares of Baidu in the 1st quarter worth $25,000. Binnacle Investments Inc bought a new stake in Baidu during the 2nd quarter valued at $29,000. Sankala Group LLC bought a new stake in Baidu during the 4th quarter valued at $46,000. Brown Brothers Harriman & Co. raised its holdings in Baidu by 35.0% during the fourth quarter. Brown Brothers Harriman & Co. now owns 405 shares of the information services provider's stock worth $53,000 after buying an additional 105 shares during the last quarter. Finally, UMB Bank n.a. lifted its stake in shares of Baidu by 25.9% in the fourth quarter. UMB Bank n.a. now owns 428 shares of the information services provider's stock valued at $56,000 after buying an additional 88 shares in the last quarter.

Baidu Trading Up 1.4%

NASDAQ:BIDU opened at $93.43 on Wednesday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.33 and a current ratio of 2.33. The firm has a market cap of $31.79 billion, a price-to-earnings ratio of -44.28, a price-to-earnings-growth ratio of 3.28 and a beta of 0.58. Baidu, Inc. has a 52 week low of $88.66 and a 52 week high of $165.30. The firm has a 50-day moving average price of $107.87 and a two-hundred day moving average price of $119.71.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Citigroup reissued a "buy" rating on shares of Baidu in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. decreased their price objective on Baidu from $230.00 to $205.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Morgan Stanley downgraded Baidu from an "equal weight" rating to an "underweight" rating and lowered their price objective for the stock from $130.00 to $80.00 in a research note on Wednesday, August 19th. Bank of America dropped their target price on Baidu from $180.00 to $165.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. Finally, Zacks Research cut Baidu from a "hold" rating to a "strong sell" rating in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, Baidu presently has a consensus rating of "Moderate Buy" and a consensus price target of $156.83.

Baidu 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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