Baidu (NASDAQ:BIDU) Shares Gap Down – Here’s Why

Shares of Baidu, Inc. (NASDAQ:BIDU) gapped down before the market opened 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 traded.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on BIDU shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Baidu in a report on Thursday, August 13th. Nomura boosted their price objective on shares of Baidu from $186.00 to $190.00 and gave the stock a “buy” rating in a research report on Wednesday, May 20th. Morgan Stanley cut shares of Baidu from an “equal weight” rating to an “underweight” rating and lowered their target price for the company from $130.00 to $80.00 in a report on Wednesday, August 19th. Susquehanna dropped their target price on shares of Baidu from $140.00 to $105.00 and set a “neutral” rating on the stock in a research report on Friday, August 28th. Finally, Citigroup reiterated a “buy” rating on shares of Baidu in a research note on Tuesday, June 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $152.94.

Baidu Stock Down 8.3%

The business has a 50 day moving average of $105.49 and a 200-day moving average of $116.84. The stock has a market cap of $31.04 billion, a PE ratio of -43.19, a P/E/G ratio of 4.39 and a beta of 0.57. The company has a current ratio of 2.33, a quick ratio of 2.33 and a debt-to-equity ratio of 0.28.

Institutional Investors Weigh In On Baidu

Several large investors have recently modified their holdings of the company. Alyeska Investment Group L.P. grew its stake in shares of Baidu by 307.9% in the 2nd quarter. Alyeska Investment Group L.P. now owns 1,209,089 shares of the information services provider’s stock valued at $138,187,000 after purchasing an additional 912,638 shares during the last quarter. RPD Fund Management LLC raised its stake in shares of 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 worth $107,959,000 after purchasing an additional 777,570 shares during the last quarter. Morgan Stanley raised its stake in shares of Baidu by 38.0% during the fourth quarter. Morgan Stanley now owns 2,709,426 shares of the information services provider’s stock worth $354,014,000 after purchasing an additional 745,588 shares during the last quarter. ARK Investment Management LLC raised its stake in shares of Baidu by 127.8% during the fourth quarter. ARK Investment Management LLC now owns 1,157,878 shares of the information services provider’s stock worth $151,288,000 after purchasing an additional 649,490 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in shares of Baidu by 106.7% during the third quarter. Bank of America Corp DE now owns 1,129,272 shares of the information services provider’s stock worth $148,804,000 after purchasing an additional 582,832 shares during the period.

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.