Braskem (NYSE:BAK) Stock Price Down 5% – Should You Sell?

Braskem S.A. (NYSE:BAK)’s stock price traded down 5% on Tuesday. The company traded as low as $1.4150 and last traded at $1.4150. Approximately 804,207 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 2,368,142 shares. The stock had previously closed at $1.49.

Analyst Ratings Changes

BAK has been the topic of a number of analyst reports. JPMorgan Chase & Co. lowered Braskem from an “overweight” rating to a “neutral” rating in a research report on Tuesday, June 30th. Weiss Ratings reissued a “sell (e+)” rating on shares of Braskem in a report on Friday, July 17th. Citigroup lowered Braskem from a “neutral” rating to a “sell” rating in a research note on Thursday, June 25th. UBS Group cut shares of Braskem from a “neutral” rating to a “sell” rating and reduced their price target for the stock from $4.00 to $1.50 in a research report on Tuesday, September 15th. Finally, HSBC cut Braskem from a “buy” rating to a “hold” rating and cut their price objective for the company from $6.50 to $1.50 in a research note on Monday. Three equities research analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat, Braskem presently has an average rating of “Strong Sell” and an average price target of $2.56.

Braskem Stock Performance

The company’s fifty day moving average price is $2.00 and its 200 day moving average price is $3.07. The firm has a market capitalization of $560.03 million, a price-to-earnings ratio of -0.58, a price-to-earnings-growth ratio of 0.09 and a beta of 1.56.

Braskem (NYSE:BAK) last released its quarterly earnings data on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. The firm had revenue of $4.20 billion for the quarter. As a group, sell-side analysts expect that Braskem S.A. will post 1.58 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its stake in Braskem by 444.4% during the 4th 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 during the last quarter. Cetera Investment Advisers bought a new stake in Braskem in the first quarter valued at $51,000. Citadel Advisors LLC acquired a new position in shares of Braskem during the second quarter valued at $89,000. Ramsey Quantitative Systems acquired a new position in shares of Braskem during the second quarter valued at $155,000. Finally, Private Advisor Group LLC bought a new position in shares of Braskem during the first quarter worth about $157,000.

About Braskem

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.