Braskem (NYSE:BAK) Reaches New 52-Week Low - Time to Sell?

Key Points

• Braskem shares fell to a new 52-week low of $2.20 and last traded near $2.23, well below their 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: three analysts rate the stock Hold and five rate it Sell, producing a consensus rating of “Strong Sell” despite a $3.40 average price target.
• Braskem exceeded quarterly earnings and revenue expectations, but it continues to report negative profitability metrics, including a 13.72% net margin and negative return on equity.

Braskem S.A. (NYSE:BAK - Get Free Report) shares hit a new 52-week low during trading on Thursday . The company traded as low as $2.20 and last traded at $2.2340, with a volume of 93891 shares trading hands. The stock had previously closed at $2.26.

Wall Street Analysts Forecast Growth

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

Braskem Stock Down 0.7%

The company has a 50 day simple moving average of $2.89 and a 200-day simple moving average of $3.58. The stock has a market cap of $894.87 million, a price-to-earnings ratio of -0.53, a PEG ratio of 0.13 and a beta of 1.62.

Braskem (NYSE:BAK - Get Free Report) last released its earnings results on Thursday, May 14th. The company reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.21 by $0.48. Braskem had a negative return on equity of 23.17% and a negative net margin of 13.72%.The company had revenue of $3.51 billion for the quarter, compared to the consensus estimate of $3.39 billion. On average, equities research analysts expect that Braskem S.A. will post 1.64 EPS for the current fiscal year.

Hedge Funds Weigh In On Braskem

A number of hedge funds have recently added to or reduced their stakes in BAK. Brooklands Fund Management Ltd acquired a new stake in shares of Braskem during the first quarter worth $2,013,000. Bank of America Corp DE lifted its position in shares of Braskem by 178,471.4% in the 1st quarter. Bank of America Corp DE now owns 50,000 shares of the company's stock worth $183,000 after buying an additional 49,972 shares during the last quarter. Cetera Investment Advisers acquired a new position in shares of Braskem in the 1st quarter valued at about $51,000. Private Advisor Group LLC bought a new stake in shares of Braskem during the 1st quarter valued at about $157,000. Finally, Quadrant Capital Group LLC grew its position in shares of Braskem by 222.1% during the 4th quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock valued at $38,000 after buying an additional 8,832 shares during the last quarter.

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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