Braskem (NYSE:BAK) Shares Gap Down – Should You Sell?

Braskem S.A. (NYSE:BAK) shares gapped down before the market opened on Wednesday . The stock had previously closed at $2.10, but opened at $1.84. Braskem shares last traded at $1.8050, with a volume of 836,321 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on BAK. Citigroup cut shares of Braskem from a “neutral” rating to a “sell” rating in a research report on Thursday, June 25th. JPMorgan Chase & Co. lowered shares of Braskem from an “overweight” rating to a “neutral” rating in a research report on Tuesday, June 30th. UBS Group cut shares of Braskem from a “neutral” rating to a “sell” rating and cut their price target for the stock from $4.00 to $1.50 in a research note on Tuesday. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Braskem in a research note on Friday, July 17th. Two research analysts have rated the stock with a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Strong Sell” and a consensus target price of $2.83.

Braskem Price Performance

The company has a 50 day simple moving average of $2.13 and a 200-day simple moving average of $3.21. The stock has a market cap of $711.51 million, a P/E ratio of -0.73, a price-to-earnings-growth 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 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 expect that Braskem S.A. will post 1.58 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its stake in shares of Braskem by 444.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company’s stock valued at $25,000 after purchasing an additional 7,003 shares during the period. Cetera Investment Advisers purchased a new position in shares of Braskem in the first quarter worth $51,000. SmartHarvest Portfolios LLC raised its holdings in Braskem by 49.7% during the 1st quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company’s stock valued at $199,000 after buying an additional 18,085 shares during the last quarter. Citadel Advisors LLC bought a new stake in Braskem during the 2nd quarter valued at $89,000. Finally, Private Advisor Group LLC purchased a new stake in Braskem during the 1st quarter valued at $157,000.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo. Established in 2002 through the combination of Odebrecht Química and the petrochemical company Copene, Braskem has developed into one of Latin America’s major producers of thermoplastic resins and basic petrochemicals.

The company manufactures polyethylene, polypropylene and polyvinyl chloride (PVC), which are used in packaging, construction, automotive components, consumer goods and other industrial applications.