Braskem (NYSE:BAK) Hits New 52-Week Low - What's Next?

Key Points

• Braskem's stock hit a new 52-week low at $2.32, reflecting a significant drop from the previous closing price of $2.54.
• Multiple analysts have downgraded Braskem's stock rating, with Zacks reducing it from "strong-buy" to "hold" and UBS lowering the price target from $5.10 to $3.80.
• Braskem reported an earnings per share (EPS) of ($0.14) for the last quarter, exceeding the consensus estimate significantly, despite the stock's current performance challenges.

Braskem S.A. (NYSE:BAK - Get Free Report)'s stock price hit a new 52-week low on Thursday . The company traded as low as $2.32 and last traded at $2.35, with a volume of 929306 shares changing hands. The stock had previously closed at $2.54.

Analyst Upgrades and Downgrades

BAK has been the subject of a number of research reports. Zacks Research lowered Braskem from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 30th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Braskem in a research report on Wednesday, October 8th. UBS Group lowered Braskem from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $5.10 to $3.80 in a research report on Friday, September 26th. Citigroup lowered Braskem from a "buy" rating to a "hold" rating in a research report on Friday, October 10th. Finally, JPMorgan Chase & Co. lowered their price objective on Braskem from $6.00 to $5.00 and set a "neutral" rating for the company in a research report on Wednesday, August 27th. Five investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $4.40.

Braskem Stock Down 5.9%

The stock has a market cap of $952.66 million, a P/E ratio of -0.94 and a beta of 1.76. The stock has a fifty day simple moving average of $3.02 and a 200-day simple moving average of $3.35.

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

Hedge Funds Weigh In On Braskem

Several institutional investors and hedge funds have recently modified their holdings of BAK. GAMMA Investing LLC grew its position in shares of Braskem by 654.9% in the 1st quarter. GAMMA Investing LLC now owns 19,824 shares of the company's stock valued at $76,000 after purchasing an additional 17,198 shares during the period. Ballentine Partners LLC acquired a new position in shares of Braskem in the 1st quarter valued at approximately $58,000. Kapitalo Investimentos Ltda grew its position in shares of Braskem by 1,136,346.5% in the 1st quarter. Kapitalo Investimentos Ltda now owns 1,466,016 shares of the company's stock valued at $5,644,000 after purchasing an additional 1,465,887 shares during the period. R Squared Ltd grew its position in shares of Braskem by 55.2% in the 1st quarter. R Squared Ltd now owns 17,600 shares of the company's stock valued at $68,000 after purchasing an additional 6,260 shares during the period. Finally, Virtu Financial LLC acquired a new position in shares of Braskem in the 1st quarter valued at approximately $99,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.