Baidu.com Inc (BIDU)

[mick]

awesome read my friend/ How Much Of Baidu, Inc. (NASDAQ:BIDU) Do Insiders Own?
Simply Wall St.
Simply Wall St
Simply Wall St.June 10, 2019

https://finance.yahoo.com/news/much-baidu-inc-nasdaq-bidu-132115318.html

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The big shareholder groups in Baidu, Inc. (NASDAQ:BIDU) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'

With a market capitalization of US$38b, Baidu is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about BIDU.

See our latest analysis for Baidu

What Does The Institutional Ownership Tell Us About Baidu?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Baidu does have institutional investors; and they hold 63% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Baidu's historic earnings and revenue, below, but keep in mind there's always more to the story.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Baidu. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Baidu
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.