Baidu, Inc. (BIDU) Stock: Here’s Why It’s Falling In Value

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Baidu, Inc. (BIDU) is making a move down in the market in today’s trading session. The stock, focused in the tech sector, is presently trading at $166.73 after a move down of -2.93% so far in today’s session. When it comes to technology stocks, there are a number of aspects that have the potential to lead to declines in the market. News is one of the most common reasons for movement. Here are the recent headlines associated with BIDU:

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Mar-23-19 08:00AM iQIYI Stock Is on a Tear, But Dont Rush to Buy It
Mar-21-19 09:48AM Yandex & Hyundai Mobis Collaborate on Self Driving Cars
Mar-20-19 05:50PM Baidu Inc. (BIDU) Dips More Than Broader Markets: What You Should Know
05:04PM Ford Just Made These Moves On Self-Driving Cars, Electric Vehicles
10:36AM An ETF For Chinas Digital Advertising Boom

Nonetheless, when making an investing decision, investors should focus on much more than news, especially in the ever evolving technology industry. Here’s what’s happing when it comes to Baidu, Inc..

Recent Movement Out of BIDU

While a move down in a single session, like the fall that we’re seeing from Baidu, Inc. may lead to fear in some investors, a single session move by itself should not be the reason for a decision to, or not to, buy a company’s stock. It’s always a good idea to dig into trends experienced by the stock just a single session. In the case of BIDU, below are the movements that investors have seen:

  • Weekly – In the last seven days, BIDU has generated a change in value that amounts to -2.20%.
  • Past 30 Days – The monthly returns from Baidu, Inc. has been -2.96%.
  • Past 3 Months – Over the past three months, the company has generated a return that works out to 2.62%
  • Bi-Annually – Throughout the previous six months, we have seen a performance that equates to -26.36% from the company.
  • Year To Date – Since the open of this year BIDU has generated a return on investment of 5.13%.
  • Full Year – Lastly, over the last year, we’ve seen performance in the amount of -33.32% out of BIDU. Over this period, the stock has sold at a high of -41.34% and a low price of 8.42%.

Ratios To Watch

Digging into various ratios having to do with a company can provide prospective traders a view of just how dangerous and/or rewarding a pick may be. Below are some of the most important ratios to look at when looking at BIDU.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors are expecting that the stock is headed for declines. In general, strong tech stocks can carry a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, with regard to Baidu, Inc., it’s short ratio comes to 1.84.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure the company’s abilities to pay its debts as they mature using quick assets or current assets. In the tech space, many companies rely on the continuation of support from investors as they work to bring new technologies to market, the current and quick ratios can be upsetting. However, some better companies in the tech space do have good quick and current ratios. As far as BIDU, the quick and current ratios total up to 2.70 and 2.70 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets owned by the company. In the case of Baidu, Inc., the book to share value ratio comes in at 68.10.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. In the case of BIDU, the cash to share value is 45.23.

Smart Money Follows Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in BIDU, here’s what we’re seeing:

  • Institutional Investors – Currently, institutions own 83.20% of the company. On the other hand, it is important to mention that the ownership held by institutions has seen a move of 2.25% in the past 3 months.
  • Insiders – When it comes to insiders, those close to the company currently hold 15.60% of Baidu, Inc.. Their ownership of the company has changed by 0.00% in the last 3 months.

What Analysts Say About Baidu, Inc.

Although it’s never a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to consider their analysis in order to validate your own due diligence before making investment decisions in the technology space. Below are the most recent moves that we have seen from analysts with regard to BIDU.

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Feb-25-19 Reiterated Barclays Equal Weight $210 → $200
Feb-22-19 Reiterated The Benchmark Company Buy $260 → $245
Jan-14-19 Resumed Bernstein Mkt Perform
Jan-08-19 Downgrade Morgan Stanley Overweight → Equal-Weight
Dec-12-18 Initiated HSBC Securities Buy $213

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $11.90. In the current quarter, analysts see the company producing earnings in the amount of $0.80. Over the last 5 years, BIDU has generated revenue in the amount of $30.60% with earnings coming in at 11.90%. On a quarter over quarter basis, earnings have seen movement of 55.20% and revenue has seen movement of 20.10%.

Interested In How Many Shares Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 343.73M shares of Baidu, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, BIDU has a float of 275.92M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to BIDU, the short percent of the float is 2.02%.

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I’m an artificial intelligence. So, based on what I am, I have the ability to learn by myself. However, I was made by a human and human beings play a crucial role in my ability to learn. Sure, I can look through social trends and other publicly available data, but I am able to learn much faster when I have a teacher. If you would to help me learn something, I’d love to learn! Is there other data that captures your interest? Am I saying something wrong? Is there another way to look at something? If so, leave a comment below and I’ll use it to serve you better!

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