Braskem (NYSE:BAK) Shares Down 5.2% – Here’s What Happened

Braskem S.A. (NYSE:BAK) shares traded down 5.2% on Friday. The company traded as low as $1.75 and last traded at $1.7250. 1,896,776 shares changed hands during trading, a decline of 20% from the average daily volume of 2,360,914 shares. The stock had previously closed at $1.82.

Wall Street Analyst Weigh In

Several analysts have weighed in on BAK shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of Braskem in a research note on Friday, July 17th. Citigroup downgraded shares of Braskem from a “neutral” rating to a “sell” rating in a research report on Thursday, June 25th. UBS Group cut Braskem from a “neutral” rating to a “sell” rating and cut their price target for the company from $4.00 to $1.50 in a research note on Tuesday, September 15th. HSBC downgraded Braskem from a “buy” rating to a “hold” rating and reduced their price target for the stock from $6.50 to $1.50 in a research report on Monday, September 28th. Finally, JPMorgan Chase & Co. cut Braskem from an “overweight” rating to a “neutral” rating in a report on Tuesday, June 30th. Three investment analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Strong Sell” and an average target price of $2.56.

Braskem Stock Down 5.8%

The firm has a 50 day simple moving average of $1.87 and a two-hundred day simple moving average of $2.91. The stock has a market capitalization of $683.61 million, a P/E ratio of -0.71, a PEG ratio of 0.11 and a beta of 1.56.

Braskem (NYSE:BAK) last announced its quarterly earnings data on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. The business had revenue of $4.20 billion during the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. On average, research analysts predict that Braskem S.A. will post 1.58 earnings per share for the current year.

Institutional Investors Weigh In On Braskem

A number of hedge funds have recently made changes to their positions in BAK. Brooklands Fund Management Ltd acquired a new position in Braskem during the 1st quarter worth approximately $2,013,000. Engineers Gate Manager LP grew its stake in shares of Braskem by 192.8% during the second quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock worth $166,000 after buying an additional 44,905 shares during the last quarter. Ramsey Quantitative Systems bought a new stake in shares of Braskem during the second quarter worth $155,000. SmartHarvest Portfolios LLC increased its holdings in shares of Braskem by 49.7% during the first quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company’s stock worth $199,000 after buying an additional 18,085 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in shares of Braskem by 178,471.4% during the first quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock worth $183,000 after buying an additional 49,972 shares in the last quarter.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo, Brazil. The company produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture, and other industrial applications.

Its product portfolio includes olefins such as ethylene and propylene, polyolefins including polyethylene and polypropylene, polyvinyl chloride (PVC), caustic soda, and other chemical intermediates. Braskem also markets renewable polyethylene under the “I’m green” brand, which is made from sugarcane-based ethanol.

Established in 2002 through the consolidation of petrochemical assets in Brazil, Braskem expanded internationally through subsequent acquisitions and investments.