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

Braskem S.A. (NYSE:BAK)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $2.84, but opened at $2.70. Braskem shares last traded at $2.6850, with a volume of 74,012 shares changing hands.

Wall Street Analysts Forecast Growth

BAK has been the subject of several analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Braskem in a research report on Wednesday, October 8th. JPMorgan Chase & Co. reduced their price target on Braskem from $6.00 to $5.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 27th. Citigroup cut Braskem from a “buy” rating to a “hold” rating in a report on Friday, October 10th. Zacks Research lowered shares of Braskem from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 30th. Finally, Santander downgraded shares of Braskem from a “neutral” rating to an “underperform” rating in a research note on Thursday, October 16th. Five equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Braskem currently has a consensus rating of “Reduce” and an average target price of $4.40.

Braskem Stock Down 5.8%

The firm has a market cap of $1.07 billion, a P/E ratio of -1.18 and a beta of 1.89. The business’s 50 day moving average is $2.73 and its 200-day moving average is $3.07.

Braskem (NYSE:BAK) last announced its quarterly earnings data on Wednesday, November 12th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.48) by $0.46. The company had revenue of $3.25 billion for the quarter, compared to analyst estimates of $3.23 billion. As a group, equities analysts predict that Braskem S.A. will post -0.77 earnings per share for the current year.

Institutional Trading of Braskem

Several institutional investors and hedge funds have recently bought and sold shares of BAK. Virtu Financial LLC lifted its holdings in Braskem by 28.7% during the 3rd quarter. Virtu Financial LLC now owns 44,587 shares of the company’s stock worth $108,000 after buying an additional 9,938 shares during the last quarter. American Century Companies Inc. raised its position in shares of Braskem by 12.6% during the 1st quarter. American Century Companies Inc. now owns 110,035 shares of the company’s stock valued at $424,000 after acquiring an additional 12,300 shares in the last quarter. Ballentine Partners LLC bought a new position in Braskem during the third quarter worth $34,000. Dark Forest Capital Management LP boosted its holdings in Braskem by 94.7% in the third quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company’s stock worth $78,000 after purchasing an additional 15,630 shares during the period. Finally, Jump Financial LLC increased its stake in Braskem by 114.4% during the first quarter. Jump Financial LLC now owns 37,304 shares of the company’s stock valued at $144,000 after purchasing an additional 19,904 shares during the last quarter.

Braskem Company Profile

Braskem SA, together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins.