Braskem (NYSE:BAK) Sets New 52-Week Low - Here's Why

Key Points

• Braskem shares hit a new 52-week low of $2.18, well below their 50-day and 200-day moving averages of $2.74 and $3.56, respectively.
• Analyst sentiment is strongly negative: Braskem has an average “Strong Sell” rating, with five sell ratings and three holds, and an average price target of $3.40.
• The company exceeded quarterly earnings expectations, reporting $0.69 in EPS versus a $0.21 consensus and revenue of $3.51 billion, but continues to post negative margins and return on equity.

Braskem S.A. (NYSE:BAK - Get Free Report) shares hit a new 52-week low during trading on Wednesday . The stock traded as low as $2.18 and last traded at $2.2250, with a volume of 103762 shares trading hands. The stock had previously closed at $2.21.

Wall Street Analyst Weigh In

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

Braskem Price Performance

The business's 50-day simple moving average is $2.74 and its two-hundred day simple moving average is $3.56. The stock has a market cap of $876.93 million, a price-to-earnings ratio of -0.52, a price-to-earnings-growth ratio of 0.13 and a beta of 1.62.

Braskem (NYSE:BAK - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The company reported $0.69 EPS for the quarter, beating 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 during the quarter, compared to analysts' expectations of $3.39 billion. Equities research analysts forecast that Braskem S.A. will post 1.64 earnings per share for the current year.

Institutional Trading of Braskem

A number of hedge funds have recently made changes to their positions in the company. Brooklands Fund Management Ltd bought a new position in shares of Braskem during the first quarter valued at $2,013,000. Renaissance Technologies LLC grew its stake in shares of Braskem by 619.5% in the fourth quarter. Renaissance Technologies LLC now owns 265,488 shares of the company's stock worth $783,000 after purchasing an additional 228,588 shares during the last quarter. Jump Financial LLC grew its stake in shares of Braskem by 607.1% in the second quarter. Jump Financial LLC now owns 263,771 shares of the company's stock worth $865,000 after purchasing an additional 226,467 shares during the last quarter. Marshall Wace LLP acquired a new stake in Braskem in the fourth quarter valued at $477,000. Finally, Jane Street Group LLC increased its holdings in Braskem by 193.6% in the fourth quarter. Jane Street Group LLC now owns 220,898 shares of the company's stock valued at $652,000 after purchasing an additional 145,655 shares during the period.

Braskem Company Profile

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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