Braskem (NYSE:BAK) Reaches New 1-Year Low - Should You Sell?

Key Points

• Braskem shares fell to a new 52-week low of $2.22, well below their 50-day and 200-day moving averages of $3.19 and $3.62, respectively.
• Analyst sentiment is strongly negative: recent firms downgraded the stock, producing a consensus rating of “Strong Sell” from eight analysts, with a consensus price target of $3.40.
• Although Braskem exceeded quarterly EPS and revenue expectations, the company reported a negative net margin of 13.72% and negative return on equity of 23.17%, underscoring its ongoing financial challenges.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $2.22 and last traded at $2.2650, with a volume of 3296150 shares traded. The stock had previously closed at $2.37.

Analyst Ratings Changes

Several research firms recently commented on BAK. Zacks Research lowered shares of Braskem from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Braskem in a report on Friday, July 17th. Bradesco Corretora downgraded Braskem from an "outperform" rating to an "underperform" rating and set a $1.50 price target on the stock. in a research report on Tuesday, April 21st. Citigroup cut Braskem from a "neutral" rating to a "sell" rating in a research report on Thursday, June 25th. Finally, JPMorgan Chase & Co. lowered Braskem from an "overweight" rating to a "neutral" rating in a research report on Tuesday, June 30th. Three equities research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Strong Sell" and a consensus price target of $3.40.

Braskem Price Performance

The business's fifty day moving average price is $3.19 and its two-hundred day moving average price is $3.62. The stock has a market capitalization of $902.83 million, a PE ratio of -0.54, a price-to-earnings-growth ratio of 0.14 and a beta of 1.61.

Braskem (NYSE:BAK - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported $0.69 earnings per share (EPS) 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 return on equity of 23.17% and a negative net margin of 13.72%. As a group, equities research analysts anticipate that Braskem S.A. will post 1.64 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Braskem

Several hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its holdings in shares of Braskem by 444.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock valued at $25,000 after acquiring an additional 7,003 shares during the last quarter. Quadrant Capital Group LLC raised its position in Braskem by 222.1% during the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock valued at $38,000 after acquiring an additional 8,832 shares in the last quarter. Signaturefd LLC lifted its holdings in Braskem by 50.1% in the fourth quarter. Signaturefd LLC now owns 13,524 shares of the company's stock valued at $40,000 after acquiring an additional 4,513 shares during the period. Evergreen Capital Management LLC purchased a new stake in Braskem in the 4th quarter worth approximately $44,000. Finally, Cetera Investment Advisers acquired a new stake in shares of Braskem during the 1st quarter worth approximately $51,000.

About Braskem

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.

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