Braskem (NYSE:BAK) Shares Gap Down After Analyst Downgrade

Braskem S.A. (NYSE:BAK)’s share price gapped down before the market opened on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $4.90, but opened at $4.69. Braskem shares last traded at $4.8530, with a volume of 358,820 shares traded.

Several other research firms have also recently weighed in on BAK. Citigroup upgraded shares of Braskem from a “strong sell” rating to a “hold” rating in a research report on Wednesday, April 1st. Bradesco Corretora cut shares of Braskem from an “outperform” rating to an “underperform” rating and set a $1.50 price objective for the company. in a research report on Tuesday, April 21st. Bank of America lowered shares of Braskem from a “neutral” rating to an “underperform” rating and set a $2.80 target price on the stock. in a research note on Thursday, March 26th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a research note on Monday, April 20th. Finally, JPMorgan Chase & Co. raised shares of Braskem from a “neutral” rating to an “overweight” rating and set a $5.50 target price on the stock in a research note on Tuesday, May 12th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus price target of $3.40.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. UBS Group AG boosted its stake in Braskem by 2.6% during the 3rd quarter. UBS Group AG now owns 783,445 shares of the company’s stock worth $1,896,000 after acquiring an additional 19,956 shares during the last quarter. Brooklands Fund Management Ltd bought a new position in Braskem during the 1st quarter worth approximately $2,013,000. State Street Corp boosted its stake in Braskem by 7.2% during the 4th quarter. State Street Corp now owns 311,507 shares of the company’s stock worth $919,000 after acquiring an additional 20,805 shares during the last quarter. Renaissance Technologies LLC boosted its stake in Braskem by 619.5% during the 4th quarter. Renaissance Technologies LLC now owns 265,488 shares of the company’s stock worth $783,000 after acquiring an additional 228,588 shares during the last quarter. Finally, Jump Financial LLC boosted its stake in Braskem by 607.1% during the 2nd quarter. Jump Financial LLC now owns 263,771 shares of the company’s stock worth $865,000 after acquiring an additional 226,467 shares during the last quarter.

Braskem Trading Down 3.5%

The firm’s 50 day moving average is $4.01 and its two-hundred day moving average is $3.50. The firm has a market cap of $1.93 billion, a P/E ratio of -1.15, a price-to-earnings-growth ratio of 0.14 and a beta of 1.56.

Braskem (NYSE:BAK) last announced its quarterly earnings results on Thursday, May 14th. The company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.48. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%. The firm had revenue of $3.51 billion for the quarter, compared to analyst estimates of $3.39 billion. Analysts predict that Braskem S.A. will post 2.07 EPS for the current fiscal year.

About Braskem

Braskem (NYSE:BAK) is a leading integrated petrochemical company based in São Paulo, Brazil, and holds the distinction of being the largest thermoplastic resins producer in Latin America. The company operates across the entire value chain, from feedstock sourcing and polymer production to distribution and recycling. Braskem’s comprehensive approach to petrochemical manufacturing enables it to serve a diverse set of end markets with a broad portfolio of products.

Braskem’s core product lines include polypropylene, polyethylene and polyvinyl chloride (PVC), which are used in industries such as packaging, automotive, construction and electrical & electronics.