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 $1.87, but opened at $1.78. Braskem shares last traded at $1.8330, with a volume of 274,589 shares traded.

Wall Street Analyst Weigh In

BAK has been the topic of several recent analyst reports. HSBC cut shares of Braskem from a “buy” rating to a “hold” rating and cut their price target for the company from $6.50 to $1.50 in a report on Monday, September 28th. UBS Group downgraded shares of Braskem from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $4.00 to $1.50 in a research note on Tuesday, September 15th. Citigroup lowered shares of Braskem from a “neutral” rating to a “sell” rating in a report on Thursday, June 25th. JPMorgan Chase & Co. downgraded shares of Braskem from an “overweight” rating to a “neutral” rating in a research report on Tuesday, June 30th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Braskem in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Braskem currently has a consensus rating of “Strong Sell” and an average price target of $2.56.

Braskem Stock Down 1.9%

The company has a 50 day simple moving average of $1.82 and a 200-day simple moving average of $2.83. The stock has a market cap of $719.47 million, a price-to-earnings ratio of 0.66, a PEG ratio of 0.11 and a beta of 1.56.

Braskem (NYSE:BAK) last released its earnings results on Friday, June 26th. The company reported $1.61 EPS for the quarter. The company 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%. On average, equities research analysts expect that Braskem S.A. will post 1.58 EPS for the current fiscal year.

Institutional Investors Weigh In On Braskem

Several institutional investors and hedge funds have recently made changes to their positions in BAK. Cetera Investment Advisers bought a new position in Braskem during the first quarter worth $51,000. Citadel Advisors LLC acquired a new position in Braskem in the second quarter worth $89,000. Private Advisor Group LLC bought a new stake in Braskem during the first quarter valued at $157,000. Bank of America Corp DE increased its stake in Braskem by 178,471.4% during the first quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock valued at $183,000 after purchasing an additional 49,972 shares during the last quarter. Finally, SmartHarvest Portfolios LLC increased its stake in Braskem by 49.7% during the first quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company’s stock valued at $199,000 after purchasing an additional 18,085 shares during the last quarter.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo, Brazil. The company produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture, and other industrial applications.

Its product portfolio includes olefins such as ethylene and propylene, polyolefins including polyethylene and polypropylene, polyvinyl chloride (PVC), caustic soda, and other chemical intermediates. Braskem also markets renewable polyethylene under the “I’m green” brand, which is made from sugarcane-based ethanol.

Established in 2002 through the consolidation of petrochemical assets in Brazil, Braskem expanded internationally through subsequent acquisitions and investments.