Shares of Baidu Inc (ADR) (NASDAQ:BIDU) have skyrocketted in the final 10 minutes of trading today with many shareholders scratching their heads as to why.
The stock which traded in a range between $202.95 and $209.12 all day, saw its shares jump close to $9 in the final 10 minutes of trading on the day. The move took place in the absense of any major material news, perplexing traders who decided to stick around for the tail end of the trading day.
While some speculate the move may have been triggered by the fact that the stock will be added to the MSCI Emerging Markets index, along with Alibaba, the fact the move occurred at the end of the day like it did makes us question this speculation. The stock increased 6.03% or $12.39 during the last trading session, hitting $217.97. About 5.60 million shares traded hands or 21.74% up from the average. BIDU has declined 6.75% since April 27, 2015 and is downtrending. It has underperformed by 5.86% the S&P500.
Out of 12 analysts covering Baidu (NASDAQ:BIDU), 5 rate it “Buy”, 2 “Sell”, while 5 “Hold”. This means 42% are positive. $219 is the highest target while $150 is the lowest. The $191.43 average target is -12.18% below today’s ($217.97) stock price. Baidu was the topic in 13 analyst reports since July 28, 2015 according to StockzIntelligence Inc. TH Capital maintained the stock on October 27 with “Buy” rating. Summit Research downgraded the shares of BIDU in a report on September 30 to “Hold” rating. Finally, Oppenheimer maintained the stock with “Outperform” rating in an August 3 report.
Baidu, Inc. is a Chinese-language Internet search well-known provider (ISP). The company has a market cap of $74.34 billion. Baidu serves three types of online participants, which include users, clients and Baidu Union Members. It has 40.38 P/E ratio. The Firm offers a Chinese-language search platform on its Website, Baidu.com.