Braskem (NYSE:BAK) Sees Large Volume Increase - What's Next?

Key Points

• Braskem experienced a significant increase in trading volume, with approximately 1,179,380 shares traded on Monday, a 26% rise from the previous session.
• Analysts have been mixed on Braskem's stock, with UBS downgrading it to a neutral rating and Zacks upgrading it to a strong-buy, while the average target price is set at $4.40.
• The company's recent earnings report showed a better-than-expected EPS of ($0.14), compared to a consensus estimate of ($0.70), highlighting a strong revenue performance.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) saw unusually-high trading volume on Monday . Approximately 1,179,380 shares were traded during mid-day trading, an increase of 26% from the previous session's volume of 938,147 shares.The stock last traded at $2.51 and had previously closed at $2.61.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. UBS Group downgraded shares of Braskem from a "buy" rating to a "neutral" rating and cut their price target for the company from $5.10 to $3.80 in a research report on Friday. Zacks Research raised shares of Braskem from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 1st. Finally, JPMorgan Chase & Co. cut their price target on shares of Braskem from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 27th. One analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $4.40.

Braskem Stock Down 4.0%

The company has a 50 day moving average price of $3.19 and a 200-day moving average price of $3.47. The company has a market cap of $998.49 million, a price-to-earnings ratio of -0.99 and a beta of 1.81.

Braskem (NYSE:BAK - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.14) EPS for the quarter, beating the consensus estimate of ($0.70) by $0.56. The company had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $18.76 billion. On average, analysts forecast that Braskem S.A. will post -0.77 EPS for the current fiscal year.

Hedge Funds Weigh In On Braskem

A number of large investors have recently modified their holdings of BAK. Jane Street Group LLC raised its position in Braskem by 130.3% in the 2nd quarter. Jane Street Group LLC now owns 49,301 shares of the company's stock valued at $162,000 after buying an additional 27,891 shares during the last quarter. Jump Financial LLC raised its position in Braskem by 607.1% in the 2nd quarter. Jump Financial LLC now owns 263,771 shares of the company's stock valued at $865,000 after buying an additional 226,467 shares during the last quarter. Centric Wealth Management purchased a new stake in Braskem in the 2nd quarter valued at $128,000. Graham Capital Management L.P. purchased a new stake in Braskem in the 1st quarter valued at $532,000. Finally, Banco BTG Pactual S.A. purchased a new stake in Braskem in the 1st quarter valued at $248,000.

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.

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