Braskem (NYSE:BAK) Stock Price Down 5.6% Following Weak Earnings

Braskem S.A. (NYSE:BAK) shares dropped 5.6% during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $1.98 and last traded at $1.9550. 1,717,022 shares were traded during trading, a decline of 27% from the average session volume of 2,339,068 shares. The stock had previously closed at $2.07.

The company reported $1.61 EPS for the quarter. The business had revenue of $4.20 billion during the quarter. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%.

Analysts Set New Price Targets

BAK has been the subject of a number of research reports. JPMorgan Chase & Co. cut Braskem from an “overweight” rating to a “neutral” rating in a research report on Tuesday, June 30th. Citigroup downgraded Braskem from a “neutral” rating to a “sell” rating in a research note on Thursday, June 25th. Bradesco Corretora cut shares of Braskem from an “outperform” rating to an “underperform” rating and set a $1.50 price objective on the stock. in a research note on Tuesday, April 21st. Weiss Ratings reissued a “sell (e+)” rating on shares of Braskem in a report on Friday, July 17th. Finally, Zacks Research lowered shares of Braskem from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. Three equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Strong Sell” and a consensus price target of $3.40.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in BAK. Brooklands Fund Management Ltd purchased a new position in shares of Braskem during the 1st quarter valued at about $2,013,000. Renaissance Technologies LLC raised 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 period. Jump Financial LLC lifted its holdings in Braskem by 607.1% during the second quarter. Jump Financial LLC now owns 263,771 shares of the company’s stock valued at $865,000 after purchasing an additional 226,467 shares in the last quarter. Marshall Wace LLP bought a new position in shares of Braskem in the fourth quarter worth approximately $477,000. Finally, Jane Street Group LLC boosted its position in shares of Braskem by 193.6% in the fourth quarter. Jane Street Group LLC now owns 220,898 shares of the company’s stock worth $652,000 after purchasing an additional 145,655 shares during the period.

Braskem Stock Down 5.0%

The stock’s 50 day moving average price is $2.67 and its 200-day moving average price is $3.54. The stock has a market capitalization of $783.65 million, a PE ratio of -0.47, a PEG ratio of 0.13 and a beta of 1.62.

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.