Baidu (NASDAQ:BIDU) Shares Gap Down - Here's Why

Key Points

• Baidu shares fell 8.3%, opening at $91.76 versus the previous close of $99.47, amid heavy trading volume.
• Analyst sentiment is mixed: Morgan Stanley cut its rating to “underweight” and lowered its target to $80, while Benchmark maintained a “buy” rating with a $150 target. Overall, analysts hold a “Moderate Buy” consensus with a $152.94 average target.
• Baidu’s market capitalization is approximately $31.04 billion, and its shares are trading below both their 50-day and 200-day moving averages.

Shares of Baidu, Inc. (NASDAQ:BIDU - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $99.47, but opened at $91.76. Baidu shares last traded at $91.4530, with a volume of 1,470,790 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Zacks Research lowered shares of Baidu from a "hold" rating to a "strong sell" rating in a report on Monday, July 20th. Citigroup restated a "buy" rating on shares of Baidu in a research note on Tuesday, June 23rd. Weiss Ratings reiterated a "sell (d)" rating on shares of Baidu in a research note on Thursday, August 13th. Morgan Stanley lowered Baidu from an "equal weight" rating to an "underweight" rating and decreased their target price for the company from $130.00 to $80.00 in a report on Wednesday, August 19th. Finally, Benchmark lowered their target price on Baidu from $215.00 to $150.00 and set a "buy" rating for the company in a research note on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, three have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $152.94.

Baidu Stock Down 8.3%

The company has a current ratio of 2.33, a quick ratio of 2.33 and a debt-to-equity ratio of 0.28. The company has a market cap of $31.04 billion, a price-to-earnings ratio of -43.19, a PEG ratio of 4.39 and a beta of 0.57. The firm's fifty day simple moving average is $105.49 and its 200 day simple moving average is $116.84.

Hedge Funds Weigh In On Baidu

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

About Baidu

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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