Braskem (NYSE:BAK) Sets New 52-Week Low After Analyst Downgrade

Key Points

• Braskem's stock price reached a new 52-week low after UBS Group downgraded it from a buy to a neutral rating, with a reduced price target of $3.80.
• Despite the downgrade, Zacks Research recently upgraded Braskem from a hold rating to a strong-buy rating, contributing to a current consensus target price of $4.40.
• Braskem's market capitalization is approximately $1.09 billion, and the stock is trading at a significant discount with a PE ratio of -1.08.

Braskem S.A. (NYSE:BAK - Get Free Report)'s stock price hit a new 52-week low during trading on Friday after UBS Group downgraded the stock from a buy rating to a neutral rating. UBS Group now has a $3.80 price target on the stock, down from their previous price target of $5.10. Braskem traded as low as $2.71 and last traded at $2.78, with a volume of 784102 shares changing hands. The stock had previously closed at $3.06.

Several other analysts have also issued reports on BAK. Zacks Research raised Braskem from a "hold" rating to a "strong-buy" rating in a report on Monday, September 1st. JPMorgan Chase & Co. dropped their target price on Braskem from $6.00 to $5.00 and set a "neutral" rating for the company in a research report on Wednesday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Braskem presently has an average rating of "Moderate Buy" and a consensus target price of $4.40.

Institutional Trading of Braskem

A number of hedge funds and other institutional investors have recently made changes to their positions in BAK. Jane Street Group LLC boosted its holdings in Braskem by 130.3% during the 2nd quarter. Jane Street Group LLC now owns 49,301 shares of the company's stock valued at $162,000 after acquiring an additional 27,891 shares during the period. Jump Financial LLC increased its position in Braskem by 607.1% during 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 in the last quarter. Centric Wealth Management bought a new position in Braskem during the 2nd quarter valued at approximately $128,000. Graham Capital Management L.P. bought a new stake in shares of Braskem in the 1st quarter worth $532,000. Finally, Banco BTG Pactual S.A. bought a new stake in shares of Braskem in the 1st quarter worth $248,000.

Braskem Trading Down 10.6%

The stock has a market capitalization of $1.09 billion, a PE ratio of -1.08 and a beta of 1.81. The stock has a 50 day moving average price of $3.20 and a 200-day moving average price of $3.48.

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 the consensus estimate of ($0.70) by $0.56. The firm had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $18.76 billion. Research analysts forecast that Braskem S.A. will post -0.77 earnings per share for the current year.

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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