Braskem (NYSE:BAK) Shares Gap Down - What's Next?

Key Points

• Braskem shares gapped down to $2.43 before trading on Wednesday, following a previous close of $2.50, with a last traded price of $2.51.
• Multiple analysts have downgraded Braskem's stock, with JPMorgan Chase lowering its price target from $6.00 to $5.00 and Zacks Research moving from a "strong-buy" to "hold" rating.
• The company's latest earnings report showed a significant beat on earnings, reporting ($0.14) EPS against expectations of ($0.70), despite a revenue shortfall of $3.38 billion compared to $18.76 billion forecasted.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $2.50, but opened at $2.43. Braskem shares last traded at $2.51, with a volume of 58,718 shares.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. decreased their price objective on Braskem from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 27th. Citigroup cut Braskem from a "buy" rating to a "hold" rating in a report on Friday, October 10th. Zacks Research lowered Braskem from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 30th. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a report on Wednesday, October 8th. Finally, UBS Group lowered Braskem from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $5.10 to $3.80 in a report on Friday, September 26th. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Braskem presently has a consensus rating of "Reduce" and an average price target of $4.40.

Braskem Trading Down 0.6%

The firm has a 50-day simple moving average of $3.03 and a 200-day simple moving average of $3.36. The firm has a market cap of $990.52 million, a P/E ratio of -0.98 and a beta of 1.76.

Braskem (NYSE:BAK - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.14) earnings per share for the quarter, beating analysts' consensus estimates of ($0.70) by $0.56. The company had revenue of $3.38 billion for the quarter, compared to analysts' expectations of $18.76 billion. Research analysts predict that Braskem S.A. will post -0.77 earnings per share for the current fiscal year.

Institutional Trading of Braskem

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ballentine Partners LLC acquired a new position in shares of Braskem during the first quarter worth $58,000. R Squared Ltd grew its stake 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. GAMMA Investing LLC grew its stake in shares of Braskem by 654.9% during the first quarter. GAMMA Investing LLC now owns 19,824 shares of the company's stock worth $76,000 after purchasing an additional 17,198 shares in the last quarter. Virtu Financial LLC acquired a new position in shares of Braskem during the first quarter worth $99,000. Finally, Jump Financial LLC grew its stake in shares of Braskem by 114.4% during the first quarter. Jump Financial LLC now owns 37,304 shares of the company's stock worth $144,000 after purchasing an additional 19,904 shares in the last quarter.

About Braskem

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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