Braskem (NYSE:BAK) Stock Price Down 4.7% - Should You Sell?

Key Points

• Braskem shares fell 4.7% on Monday, trading as low as $2.36 on light volume, well below the average session volume.
• Analysts remain broadly bearish on the stock: several firms downgraded Braskem recently, and MarketBeat shows a consensus rating of “Strong Sell” with an average price target of $3.40.
• Despite the weak stock performance, Braskem recently beat earnings and revenue expectations for the quarter, reporting $0.69 EPS versus $0.21 expected and $3.51 billion in revenue versus $3.39 billion expected.

Braskem S.A. (NYSE:BAK - Get Free Report)'s stock price fell 4.7% during trading on Monday . The stock traded as low as $2.36 and last traded at $2.3450. 130,466 shares changed hands during trading, a decline of 95% from the average session volume of 2,437,239 shares. The stock had previously closed at $2.46.

Analyst Ratings Changes

A number of equities research analysts have weighed in on BAK shares. Citigroup lowered shares of Braskem from a "neutral" rating to a "sell" rating in a report on Thursday, June 25th. Bank of America lowered shares of Braskem from a "neutral" rating to an "underperform" rating and set a $2.80 price target on the stock. in a report on Thursday, March 26th. Zacks Research downgraded Braskem from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. JPMorgan Chase & Co. downgraded Braskem from an "overweight" rating to a "neutral" rating in a report on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Braskem in a research report on Friday. Three analysts have rated the stock with a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, Braskem currently has a consensus rating of "Strong Sell" and an average price target of $3.40.

Braskem Trading Down 4.3%

The stock has a market capitalization of $938.70 million, a P/E ratio of -0.56, a price-to-earnings-growth ratio of 0.14 and a beta of 1.61. The business has a fifty day simple moving average of $3.51 and a 200 day simple moving average of $3.64.

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

Hedge Funds Weigh In On Braskem

A number of hedge funds have recently bought and sold shares of the company. Bank of America Corp DE increased its stake in Braskem by 178,471.4% in the 1st quarter. Bank of America Corp DE now owns 50,000 shares of the company's stock valued at $183,000 after buying an additional 49,972 shares during the last quarter. Brooklands Fund Management Ltd bought a new position in shares of Braskem during the 1st quarter worth approximately $2,013,000. Cetera Investment Advisers purchased a new position in shares of Braskem in the 1st quarter worth approximately $51,000. Private Advisor Group LLC purchased a new position in shares of Braskem in the 1st quarter worth approximately $157,000. Finally, Quadrant Capital Group LLC grew its holdings in shares of Braskem by 222.1% in the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock valued at $38,000 after acquiring an additional 8,832 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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