Braskem (NYSE:BAK) Hits New 1-Year Low - Here's What Happened

Key Points

• Braskem's stock reached a new 52-week low, trading as low as $2.35, down from a previous close of $2.55, indicating significant market challenges.
• Recent analyst downgrades include Citigroup reducing its rating from "buy" to "neutral" and a consensus rating of "Reduce" with an average target price of $4.40.
• The company reported a loss of ($0.14) earnings per share, significantly outperforming analyst expectations of ($0.70), but still falls short against revenue expectations of $18.76 billion.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) reached a new 52-week low on Friday . The company traded as low as $2.35 and last traded at $2.39, with a volume of 488407 shares changing hands. The stock had previously closed at $2.55.

Analyst Upgrades and Downgrades

BAK has been the subject of a number of recent research reports. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a research report on Wednesday. Citigroup downgraded Braskem from a "buy" rating to a "neutral" rating in a research report on Friday. Zacks Research cut Braskem from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 30th. UBS Group lowered Braskem from a "buy" rating to a "neutral" rating and dropped their price objective for the company from $5.10 to $3.80 in a research note on Friday, September 26th. Finally, JPMorgan Chase & Co. dropped their price target on Braskem from $6.00 to $5.00 and set a "neutral" rating for the company in a research note on Wednesday, August 27th. Five analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $4.40.

Braskem Trading Down 6.5%

The business has a fifty day simple moving average of $3.07 and a two-hundred day simple moving average of $3.39. The stock has a market cap of $950.67 million, a PE ratio of -0.95 and a beta of 1.76.

Braskem (NYSE:BAK - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.14) earnings per share for the quarter, topping analysts' consensus estimates of ($0.70) by $0.56. The firm had revenue of $3.38 billion for the quarter, compared to analysts' expectations of $18.76 billion. On average, research analysts predict that Braskem S.A. will post -0.77 earnings per share for the current year.

Hedge Funds Weigh In On Braskem

Hedge funds and other institutional investors have recently modified their holdings of the company. Ballentine Partners LLC bought a new position in shares of Braskem during the 1st quarter valued at $58,000. R Squared Ltd raised its holdings in Braskem by 55.2% in the 1st quarter. R Squared Ltd now owns 17,600 shares of the company's stock worth $68,000 after purchasing an additional 6,260 shares during the period. GAMMA Investing LLC raised its holdings in Braskem by 654.9% in the 1st quarter. GAMMA Investing LLC now owns 19,824 shares of the company's stock worth $76,000 after purchasing an additional 17,198 shares during the period. Virtu Financial LLC bought a new position in Braskem in the 1st quarter worth $99,000. Finally, Jump Financial LLC raised its holdings in Braskem by 114.4% in the 1st quarter. Jump Financial LLC now owns 37,304 shares of the company's stock worth $144,000 after purchasing an additional 19,904 shares during the period.

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.

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