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

Key Points

• Braskem's share price experienced a significant drop, gapping down from a previous close of $3.20 to an opening price of $3.09 and last trading at $3.01.
• The company reported a quarterly loss of ($0.14) EPS, exceeding analysts' expectations, with revenue coming in at $3.38 billion against forecasts of $18.76 billion.
• Several institutional investors have increased their stakes in Braskem, including Kapitalo Investimentos Ltda, which boosted its position by over 1,136,000% in the first quarter.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $3.20, but opened at $3.09. Braskem shares last traded at $3.01, with a volume of 413,707 shares changing hands.

Braskem Stock Up 0.8%

The firm's 50 day simple moving average is $3.38 and its 200-day simple moving average is $3.71. The company has a market capitalization of $1.21 billion, a PE ratio of -1.20 and a beta of 1.70.

Braskem (NYSE:BAK - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.14) earnings per share for the quarter, topping analysts' consensus estimates of ($0.70) by $0.56. The business had revenue of $3.38 billion for the quarter, compared to analysts' expectations of $18.76 billion. As a group, sell-side analysts anticipate that Braskem S.A. will post -0.77 EPS for the current fiscal year.

Institutional Investors Weigh In On Braskem

Large investors have recently modified their holdings of the stock. Ballentine Partners LLC acquired a new position in Braskem during the 1st quarter worth approximately $58,000. R Squared Ltd lifted its position in shares of Braskem by 55.2% during the first quarter. R Squared Ltd now owns 17,600 shares of the company's stock worth $68,000 after purchasing an additional 6,260 shares in the last quarter. Dark Forest Capital Management LP purchased a new position in shares of Braskem in the fourth quarter valued at $71,000. GAMMA Investing LLC boosted its stake in shares of Braskem by 654.9% in the first quarter. GAMMA Investing LLC now owns 19,824 shares of the company's stock valued at $76,000 after purchasing an additional 17,198 shares during the period. Finally, Virtu Financial LLC acquired a new stake in Braskem during the 1st quarter valued at $99,000.

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.