Braskem (NYSE:BAK) Stock Price Down 6.1% - What's Next?

Key Points

• Braskem shares slid 6.1% intraday to about $3.76 on Wednesday, trading well below recent levels with volume of ~549,000 shares (down ~78% versus average).
• Analysts are split but cautious: MarketBeat shows a consensus rating of "Reduce" with a $3.87 target, while recent notes range from Bank of America’s underperform/$2.80 to Zacks’ upgrade to a strong-buy.
• Fundamentals remain weak—Braskem reported ($2.33) EPS last quarter, has negative net margin and ROE, a market cap of ~$1.48B, and analysts expect about -0.77 EPS for the year.

Braskem S.A. (NYSE:BAK - Get Free Report)'s stock price dropped 6.1% during trading on Wednesday . The stock traded as low as $3.81 and last traded at $3.7550. Approximately 549,282 shares traded hands during trading, a decline of 78% from the average daily volume of 2,492,759 shares. The stock had previously closed at $4.00.

Wall Street Analyst Weigh In

BAK has been the topic of several analyst reports. Bank of America downgraded 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. Citigroup upgraded shares of Braskem from a "strong sell" rating to a "hold" rating in a report on Wednesday, April 1st. Zacks Research upgraded shares of Braskem from a "hold" rating to a "strong-buy" rating in a report on Monday, April 6th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Braskem in a report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Braskem currently has a consensus rating of "Reduce" and a consensus target price of $3.87.

Braskem Trading Down 6.9%

The company has a market capitalization of $1.48 billion, a PE ratio of -0.81 and a beta of 1.74. The firm's 50-day simple moving average is $3.98 and its 200-day simple moving average is $3.27.

Braskem (NYSE:BAK - Get Free Report) last released its quarterly earnings data on Saturday, February 14th. The company reported ($2.33) earnings per share (EPS) 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%. As a group, analysts anticipate that Braskem S.A. will post -0.77 EPS for the current year.

Institutional Investors Weigh In On Braskem

A number of hedge funds and other institutional investors have recently bought and sold shares of BAK. Millennium Management LLC purchased a new stake in shares of Braskem in the fourth quarter worth about $112,000. Schonfeld Strategic Advisors LLC acquired a new position in Braskem in the 4th quarter worth about $232,000. Squarepoint Ops LLC acquired a new position in Braskem in the 4th quarter worth about $79,000. Marshall Wace LLP acquired a new position in Braskem in the 4th quarter worth about $477,000. Finally, State Street Corp raised its holdings in Braskem by 7.2% in the 4th quarter. State Street Corp now owns 311,507 shares of the company's stock worth $919,000 after purchasing an additional 20,805 shares during the period.

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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