Baidu Inc. (NASDAQ: BIDU) stock jumped 1.84% on Friday to $136.63 against a previous-day closing price of $134.16. With 2.57 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.95 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $137.30 whereas the lowest price it dropped to was $129.73. The 52-week range on BIDU shows that it touched its highest point at $182.60 and its lowest point at $101.62 during that stretch. It currently has a 1-year price target of $198.44. Beta for the stock currently stands at 0.73.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BIDU was down-trending over the past week, with a drop of -3.11%, but this was down by -11.42% over a month. Three-month performance surged to 7.10% while six-month performance fell -15.19%. The stock lost -16.73% in the past year, while it has lost -8.17% so far this year. A look at the trailing 12-month EPS for BIDU yields -7.13 with Next year EPS estimates of 61.29. For the next quarter, that number is 10.57. This implies an EPS growth rate of -56.80% for this year and 20.36% for next year. EPS is expected to grow by 3.85% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -2.50%.
Float and Shares Shorts:
At present, 359.37 million BIDU shares are outstanding with a float of 273.86 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.17 million, which was 2.07% higher than short shares on Jun 14, 2022. In addition to Mr. Yanhong Li as the firm’s Co-Founder, Chairman & CEO, Mr. Rong Luo serves as its Chief Financial Officer.
Through their ownership of 47.63% of BIDU’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 25.74% of BIDU, in contrast to 20.93% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BIDU with 3.36% of the stake, PRIMECAP Management Co. holds 9,535,029 shares worth 9,535,029. A second-largest stockholder of BIDU, BlackRock Fund Advisors, holds 7,710,415 shares, controlling over 2.72% of the firm’s shares. Dodge & Cox is the third largest shareholder in BIDU, holding 7,198,655 shares or 2.54% stake. With a 1.88% stake in BIDU, the Vanguard PRIMECAP Fund is the largest stakeholder. A total of 5,323,248 shares are owned by the mutual fund manager. The Dodge & Cox International Stock F, which owns about 1.44% of BIDU stock, is the second-largest Mutual Fund holder. It holds 4,080,815 shares valued at 606.94 million. Invesco QQQ Trust holds 1.10% of the stake in BIDU, owning 3,130,328 shares worth 465.57 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BIDU since 46 analysts follow the stock currently. There are 34 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BIDU analysts setting a high price target of $1,920.10 and a low target of $932.34, the average target price over the next 12 months is $1,351.52. Based on these targets, BIDU could surge 1305.33% to reach the target high and rise by 582.38% to reach the target low. Reaching the average price target will result in a growth of 889.18% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BIDU will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $70.32 being high and $34.20 being low. For BIDU, this leads to a yearly average estimate of $49.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Baidu Inc. surprised analysts by $0.90 when it reported $1.67 EPS against a consensus estimate of $0.76. The surprise factor in the prior quarter was $0.39. Based on analyst estimates, the high estimate for the next quarter is $14.29 and the low estimate is $7.81. The average estimate for the next quarter is thus $10.49.