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

Braskem S.A. (NYSE:BAK)’s stock price gapped down prior to trading on Wednesday. The stock had previously closed at $1.87, but opened at $1.78. Braskem shares last traded at $1.8330, with a volume of 274,589 shares.

Wall Street Analysts Forecast Growth

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

Braskem Stock Down 2.9%

The firm’s 50-day moving average price is $1.84 and its 200 day moving average price is $2.86. The company has a market capitalization of $723.46 million, a P/E ratio of -0.75, a P/E/G ratio of 0.11 and a beta of 1.56.

Braskem (NYSE:BAK) last posted its earnings results on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. The company had revenue of $4.20 billion for the quarter. As a group, equities research analysts expect that Braskem S.A. will post 1.58 EPS for the current year.

Institutional Trading of Braskem

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BAK. Cetera Investment Advisers bought a new position in shares of Braskem in the first quarter valued at approximately $51,000. Citadel Advisors LLC purchased a new position in shares of Braskem during the second quarter valued at approximately $89,000. Private Advisor Group LLC purchased a new position in shares of Braskem during the first quarter valued at approximately $157,000. Bank of America Corp DE boosted its position 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 valued at $183,000 after buying an additional 49,972 shares during the last quarter. Finally, SmartHarvest Portfolios LLC grew its holdings in 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.

About Braskem

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.