Baidu, Inc. (BIDU): Important Takeaways

On the technicals front, Baidu, Inc. (NASDAQ:BIDU) overall has 8% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the BIDU’s short-term trajectory should know that short terms indicators for the stock averaged 20% Buy with an average daily trading volume over the past 20 days at 3818915 shares. BIDU stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 3180162 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 3170935 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $166.58. Below this, the next support is placed in the zone of $165.42. Till the time, the BIDU stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.91 on daily chart, which may remain a cause for concern. If the price breaks below $165.42 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $168.47 mark may result into a pull-back move towards $169.2 level.

Baidu, Inc. (BIDU) is projected to climb by 30.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $298-month high price target. This represents a whopping 77.66 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $210.27, which represents a return potential of 25.35 percent when compared to the closing price of the stock of $167.74 on Thursday, March 14. The lowest price target for the stock is $168 — slightly more than 0.16 percent from BIDU’s current share price.

Here’s a rundown of insider trading activity for sense of Baidu, Inc. (NASDAQ:BIDU).

BIDU shares dropped -0.43 points or -0.26 percent on Thursday to $167.74 with a light trade volume of 2.266 million shares. After opening the session at $167.96, the shares went as high as $168.04 and as low as $166.15, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $59.3 billion and now has 353.77 million shares outstanding. Baidu, Inc. (BIDU) stock has lost -1.47 percent of market value in 21 trading days.

Analysts at Barclays lifted target price for shares of Baidu, Inc. (NASDAQ:BIDU) but repeated their Equal Weight recommendation for the stock in their opinion released on February 25. The price target has been raised from $210 to $200. The Benchmark Company analysts again handed out a Buy rating to BIDU stock but they lifted target price for the shares in a flash note to investors on February 22. The price target has been raised from $260 to $245. The Benchmark Company, analysts launched coverage of BIDU stock with a Buy rating, according to their flash note to investors on February 22.

BIDU stock has a trailing 3-year beta of 1.47, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $11.67 a share in the trailing twelve months. The stock’s value has surged 5.76 percent year to date (YTD) against a decline of -35.07 percent in 12 month’s time. The company’s shares still trade -40.98 percent away from its 1-year high of $284.22 and 9.08 percent up from 52-week low of $153.78. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Baidu, Inc. (BIDU) are trading at a P/E ratio of 51.76 times earnings reported for the past 12 months. The industry BIDU operates in has an average P/E of 41.41. Its P/E ratio went as low as 12.9X and as high as 37.88 over the 5-year span. Further, it is sporting a 3.9 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.2. 49.4 percent is the gross profit margin for Baidu, Inc. and operating margin sits at 19 percent. Along with this, the net profit margin is 24.7 percent.