Baidu, Inc. (NASDAQ:BIDU) saw significant activity in its options trading on Wednesday, with investors purchasing a remarkable 84,232 call options. This figure reflects a substantial increase of 52% compared to the average volume of 55,334 call options. This surge highlights growing investor interest in the company, particularly in light of recent modifications in institutional holdings.
Institutional Investors Increase Holdings
Several institutional investors and hedge funds have recently adjusted their stakes in Baidu. Notably, Marex Group plc acquired a new position valued at approximately $7.2 million during the second quarter. Additionally, Nomura Holdings Inc. boosted its holdings by an impressive 371.4% during the same period, now owning 87,448 shares worth around $7.5 million after purchasing an additional 119,671 shares.
Nikko Asset Management Americas Inc. also increased its position in Baidu by 11.7%, now holding 167,582 shares valued at about $14.37 million. Tower Research Capital LLC TRC made a striking move, raising its holdings by 4,715.6%, acquiring 14,543 shares worth approximately $1.25 million after adding 14,241 shares. Lastly, Binnacle Investments Inc. entered the market with a new investment in Baidu valued at around $29,000.
Stock Performance and Analyst Ratings
On Thursday, Baidu shares opened at $132.92. The company has demonstrated strong financial metrics, with a 50-day moving average of $98.64 and a two-hundred day moving average of $91.57. Baidu’s debt-to-equity ratio stands at 0.19, alongside a current ratio and quick ratio both at 1.85. Over the past year, the stock has fluctuated between a low of $74.71 and a high of $141.60. With a market capitalization of $45.92 billion, Baidu also boasts a price-to-earnings (P/E) ratio of 12.25 and a beta of 0.34.
Equity analysts have expressed varying opinions on Baidu’s future. For instance, Benchmark recently reduced its target price from $120.00 to $115.00, maintaining a “buy” rating. In contrast, Barclays lowered its target price from $84.00 to $81.00 and assigned an “equal weight” rating. Arete Research made a notable upward revision, changing its rating from “sell” to “buy” with a new target price of $143.00.
Overall, seven analysts have rated Baidu with a “buy” rating, while ten have assigned a “hold” rating, and one has given it a “sell” rating. Current consensus data from MarketBeat.com indicates an average rating of “hold” with a price target of $117.45.
As Baidu continues to navigate a competitive landscape in internet search services, these recent trading activities and institutional investments may signal shifting confidence among investors in the company’s long-term prospects.
