Traders Purchase Large Volume of Baidu Call Options (NASDAQ:BIDU)

Baidu, Inc. (NASDAQ:BIDU) was the recipient of some unusual options trading on Tuesday. Stock investors acquired 25,740 call options on the company. This is an increase of approximately 25% compared to the typical daily volume of 20,625 call options.

Baidu Stock Down 3.2%

Shares of NASDAQ:BIDU opened at $109.73 on Wednesday. Baidu has a 1 year low of $84.64 and a 1 year high of $165.30. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.85 and a quick ratio of 1.85. The business’s 50-day moving average is $123.63 and its 200-day moving average is $128.51. The company has a market capitalization of $37.34 billion, a price-to-earnings ratio of -914.34, a P/E/G ratio of 1.93 and a beta of 0.56.

Hedge Funds Weigh In On Baidu

A number of institutional investors and hedge funds have recently modified their holdings of the business. Handelsbanken Fonder AB grew its position in shares of Baidu by 110.9% during the 2nd quarter. Handelsbanken Fonder AB now owns 246,789 shares of the information services provider’s stock worth $28,206,000 after buying an additional 129,789 shares during the period. Steadtrust LLC lifted its position in shares of Baidu by 1.2% during the 2nd quarter. Steadtrust LLC now owns 8,225 shares of the information services provider’s stock valued at $940,000 after acquiring an additional 100 shares during the period. FNY Investment Advisers LLC boosted its stake in Baidu by 101.3% during the second quarter. FNY Investment Advisers LLC now owns 6,999 shares of the information services provider’s stock worth $799,000 after acquiring an additional 3,522 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in Baidu by 100.1% during the second quarter. Assenagon Asset Management S.A. now owns 5,266 shares of the information services provider’s stock worth $602,000 after acquiring an additional 2,634 shares in the last quarter. Finally, 180 Wealth Advisors LLC acquired a new stake in Baidu in the second quarter worth $205,000.

Baidu News Summary

Here are the key news stories impacting Baidu this week:

• Positive Sentiment: Unusual options activity showed a notable increase in call buying, suggesting traders are positioning for a rebound or upside move in Baidu. Asian Equities Traded in the US as American Depositary Receipts Rise in Tuesday Trading
• Positive Sentiment: Bank of America kept a buy rating on Baidu even after trimming its price target to $165 from $180, which still implies meaningful upside from current levels. Baidu price target lowered by Bank of America
• Positive Sentiment: Brokerage coverage continues to lean constructive overall, with Baidu described as having an average rating of Moderate Buy. Baidu, Inc. Given Average Rating of Moderate Buy by Brokerages
• Neutral Sentiment: News that U.S. AI providers have been selling services to Singapore-based subsidiaries of Chinese tech groups including Baidu is potentially relevant, but the direct stock impact is unclear so far. OpenAI and Google sell AI models to blacklisted China groups
• Negative Sentiment: Baidu has been under pressure after a recent drop in the stock, reflecting weaker trader sentiment entering the session. Baidu Inc. Sees a More Significant Dip Than Broader Market: Some Facts to Know

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Weiss Ratings cut Baidu from a “hold (c-)” rating to a “sell (d)” rating in a report on Monday, May 18th. BNP Paribas Exane began coverage on Baidu in a research note on Wednesday, April 1st. They issued an “outperform” rating and a $161.00 price objective on the stock. Barclays decreased their target price on Baidu from $128.00 to $124.00 and set an “equal weight” rating on the stock in a research report on Monday. Bank of America lowered their target price on Baidu from $180.00 to $165.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Nomura increased their target price on shares of Baidu from $186.00 to $190.00 and gave the stock a “buy” rating in a report on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $163.11.

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.