Stock Update (NASDAQ:BIDU): Baidu Inc (ADR) Announces US$1 Billion Share Repurchase Program
Baidu Inc (ADR) (NASDAQ:BIDU), the leading Chinese language Internet search provider, today announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$1 billion of its shares over the next 12 months.
The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company plans to fund repurchases from its existing cash balance. (Original Source)
Shares of Baidu closed yesterday at $170.01. BIDU has a 1-year high of $251.99 and a 1-year low of $167.14. The stock’s 50-day moving average is $198.64 and its 200-day moving average is $206.32.
On the ratings front, Baidu has been the subject of a number of recent research reports. In a report issued on July 28, Brean Murray Carret analyst Fawne Jiang downgraded BIDU to Hold. Separately, on the same day, Pacific Crest’s Cheng Cheng downgraded the stock to Hold .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Fawne Jiang and Cheng Cheng have a total average return of 2.2% and 7.1% respectively. Jiang has a success rate of 40.4% and is ranked #1642 out of 3718 analysts, while Cheng has a success rate of 41.2% and is ranked #1230.
Overall, 4 research analysts have assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $239.29 which is 40.8% above where the stock closed yesterday.
Baidu Inc is a Chinese language Internet search provider. The Company offers a Chinese-language search platform on its website Baidu.com.