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

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

Hedge Funds Weigh In On Braskem

Several institutional investors and hedge funds have recently made changes to their positions in the company. EverSource Wealth Advisors LLC grew its position in Braskem by 444.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company’s stock worth $25,000 after buying an additional 7,003 shares in the last quarter. Ballentine Partners LLC bought a new position in Braskem during the 3rd quarter worth $34,000. Quadrant Capital Group LLC raised its position in Braskem by 222.1% during the 4th quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company’s stock worth $38,000 after purchasing an additional 8,832 shares during the last quarter. Signaturefd LLC raised its position in shares of Braskem by 50.1% in the 4th quarter. Signaturefd LLC now owns 13,524 shares of the company’s stock worth $40,000 after acquiring an additional 4,513 shares in the last quarter. Finally, Evergreen Capital Management LLC bought a new stake in Braskem in the 4th quarter valued at about $44,000.

Braskem Price Performance

The firm has a fifty day simple moving average of $4.01 and a 200-day simple moving average of $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 issued its quarterly earnings data on Thursday, May 14th. The company reported $0.69 EPS for the quarter, topping analysts’ consensus estimates of $0.21 by $0.48. The firm had revenue of $3.51 billion during the quarter, compared to analyst estimates of $3.39 billion. Braskem had a negative return on equity of 23.17% and a negative net margin of 13.72%. On average, equities analysts predict that Braskem S.A. will post 2.07 earnings per share for the current year.

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.