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

Braskem S.A. (NYSE:BAK)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $2.45, but opened at $2.37. Braskem shares last traded at $2.3650, with a volume of 185,005 shares traded.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. JPMorgan Chase & Co. lowered shares of 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 report on Thursday, June 25th. Weiss Ratings restated a “sell (e+)” rating on shares of Braskem in a report on Monday, April 20th. Zacks Research lowered Braskem from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. Finally, Bradesco Corretora cut Braskem from an “outperform” rating to an “underperform” rating and set a $1.50 price target on the stock. in a research note on Tuesday, April 21st. Three analysts have rated the stock with a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Strong Sell” and an average price target of $3.40.

Braskem Stock Up 0.2%

The stock has a market cap of $954.65 million, a PE ratio of -0.57, a PEG ratio of 0.06 and a beta of 1.61. The business’s 50-day simple moving average is $3.69 and its 200-day simple moving average is $3.66.

Braskem (NYSE:BAK) last posted its earnings results on Thursday, May 14th. The company reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.48. The company had revenue of $3.51 billion during the quarter, compared to analyst estimates of $3.39 billion. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%. As a group, equities research analysts anticipate that Braskem S.A. will post 2.79 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Braskem

Several institutional investors and hedge funds have recently bought and sold shares of BAK. UBS Group AG increased its stake in shares of Braskem by 2.6% during the third quarter. UBS Group AG now owns 783,445 shares of the company’s stock valued at $1,896,000 after buying an additional 19,956 shares during the period. Brooklands Fund Management Ltd purchased a new stake in Braskem in the first quarter worth $2,013,000. State Street Corp lifted its stake in Braskem by 7.2% in the fourth quarter. State Street Corp now owns 311,507 shares of the company’s stock worth $919,000 after acquiring an additional 20,805 shares during the period. Renaissance Technologies LLC boosted its holdings in Braskem by 619.5% in the fourth quarter. Renaissance Technologies LLC now owns 265,488 shares of the company’s stock valued at $783,000 after acquiring an additional 228,588 shares in the last quarter. Finally, Jump Financial LLC increased its position in Braskem by 607.1% during the 2nd 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 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.