Braskem (NYSE:BAK) Shares Gap Down – What’s Next?

Braskem S.A. (NYSE:BAK)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $1.63, but opened at $1.55. Braskem shares last traded at $1.4450, with a volume of 2,007,120 shares.

Analysts Set New Price Targets

A number of brokerages recently commented on BAK. Citigroup lowered Braskem from a “neutral” rating to a “sell” rating in a research report on Thursday, June 25th. Zacks Research lowered shares of Braskem from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. JPMorgan Chase & Co. cut shares of Braskem from an “overweight” rating to a “neutral” rating in a research note on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a report on Friday, July 17th. Three equities research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Strong Sell” and a consensus target price of $3.40.

Braskem Trading Up 11.1%

The firm has a market cap of $655.70 million, a price-to-earnings ratio of -0.68, a PEG ratio of 0.09 and a beta of 1.62. The company has a fifty day moving average price of $2.34 and a 200-day moving average price of $3.41.

Braskem (NYSE:BAK) last issued its earnings results on Friday, June 26th. The company reported $1.61 EPS for the quarter. The firm had revenue of $4.20 billion for the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. As a group, research analysts forecast that Braskem S.A. will post 1.51 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Braskem

Hedge funds have recently bought and sold shares of the stock. Brooklands Fund Management Ltd purchased a new position in shares of Braskem during the 1st quarter valued at approximately $2,013,000. Dark Forest Capital Management LP boosted its holdings in Braskem by 94.7% during the third quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company’s stock worth $78,000 after buying an additional 15,630 shares in the last quarter. Brevan Howard Capital Management LP purchased a new stake in Braskem during the third quarter worth $64,000. Quadrant Capital Group LLC grew its position in Braskem by 222.1% during the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company’s stock valued at $38,000 after buying an additional 8,832 shares during the period. Finally, Bank of America Corp DE grew its position in 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 period.

Braskem Company Profile

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.