Braskem (NYSE:BAK) Shares Gap Up - Should You Buy?

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $3.62, but opened at $3.74. Braskem shares last traded at $3.82, with a volume of 99,850 shares changing hands.

Wall Street Analyst Weigh In

Separately, Scotiabank lowered shares of Braskem from a "sector outperform" rating to a "sector perform" rating in a research report on Monday, March 3rd.

Braskem Stock Down 2.0%

The company's 50-day moving average price is $3.67 and its 200-day moving average price is $4.01. The firm has a market cap of $1.46 billion, a price-to-earnings ratio of -1.03 and a beta of 1.73.

Braskem (NYSE:BAK - Get Free Report) last announced its earnings results on Monday, May 12th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.27. Braskem had a negative net margin of 9.88% and a negative return on equity of 439.59%. The business had revenue of $3.60 billion for the quarter, compared to analyst estimates of $22.86 billion. Analysts predict that Braskem S.A. will post -0.77 earnings per share for the current fiscal year.

Institutional Trading of Braskem

Several institutional investors have recently modified their holdings of the stock. Graham Capital Management L.P. acquired a new stake in shares of Braskem in the first quarter valued at about $532,000. Jump Financial LLC lifted its stake in shares of Braskem by 114.4% in the first quarter. Jump Financial LLC now owns 37,304 shares of the company's stock worth $144,000 after buying an additional 19,904 shares in the last quarter. Banco BTG Pactual S.A. purchased a new position in shares of Braskem in the first quarter worth about $248,000. American Century Companies Inc. lifted its stake in shares of Braskem by 12.6% in the first quarter. American Century Companies Inc. now owns 110,035 shares of the company's stock worth $424,000 after buying an additional 12,300 shares in the last quarter. Finally, Virtu Financial LLC purchased a new position in shares of Braskem in the first quarter worth about $99,000.

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.