Braskem (NYSE:BAK) Shares Down 5.4% - Time to Sell?

Key Points

• Shares fell 5.4% intraday to $3.4150 on Monday, with 829,477 shares traded—about 65% below the average daily volume.
• Analyst sentiment has soured to a consensus "Reduce" (four Holds, three Sells); notable moves include Citigroup upgrading to Hold while Bank of America downgraded to Underperform with a $2.80 target and a $3.87 average price target.
• Fundamentals are weak: market cap ~$1.32B, last-quarter EPS of ($2.33), negative net margin (−14.53%) and ROE (−21.95%), and analysts forecast roughly −0.77 EPS for the current fiscal year.

Braskem S.A. (NYSE:BAK - Get Free Report)'s stock price traded down 5.4% on Monday . The stock traded as low as $3.43 and last traded at $3.4150. 829,477 shares traded hands during mid-day trading, a decline of 65% from the average session volume of 2,400,646 shares. The stock had previously closed at $3.61.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on BAK. Weiss Ratings restated a "sell (e+)" rating on shares of Braskem in a report on Wednesday, January 21st. Citigroup upgraded Braskem from a "strong sell" rating to a "hold" rating in a research note on Wednesday, April 1st. Zacks Research downgraded Braskem from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 19th. Finally, Bank of America downgraded shares of Braskem from a "neutral" rating to an "underperform" rating and set a $2.80 price target for the company. in a report on Thursday, March 26th. Four investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Braskem currently has a consensus rating of "Reduce" and an average price target of $3.87.

Braskem Price Performance

The firm has a market capitalization of $1.32 billion, a PE ratio of -0.72 and a beta of 1.74. The company's fifty day simple moving average is $3.97 and its 200 day simple moving average is $3.23.

Braskem (NYSE:BAK - Get Free Report) last announced its earnings results on Saturday, February 14th. The company reported ($2.33) earnings per share for the quarter. The company had revenue of $2.56 billion during the quarter. Braskem had a negative net margin of 14.53% and a negative return on equity of 21.95%. On average, analysts anticipate that Braskem S.A. will post -0.77 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Braskem

Hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC bought a new position in shares of Braskem during the 4th quarter valued at $112,000. Schonfeld Strategic Advisors LLC purchased a new stake in Braskem in the 4th quarter worth $232,000. Squarepoint Ops LLC purchased a new position in Braskem in the 4th quarter worth approximately $79,000. Marshall Wace LLP bought a new position in shares of Braskem during the fourth quarter worth $477,000. Finally, State Street Corp grew its holdings in Braskem by 7.2% during the 4th quarter. State Street Corp now owns 311,507 shares of the company's stock valued at $919,000 after buying an additional 20,805 shares in the last quarter.

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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