Braskem (NYSE:BAK) Stock Price Down 6.7% - Should You Sell?

Key Points

• Shares fell 6.7% to $3.395 on Wednesday (trading as low as $3.48) with volume about 1.22M shares, roughly 50% below the average session volume.
• Analyst sentiment skews negative with a consensus rating of "Reduce" and a $3.28 consensus price target, amid recent downgrades from Bank of America and Bradesco even as Zacks upgraded to a "strong-buy."
• Fundamentals remain weak: Braskem reported a (‑$2.33) EPS last quarter, has negative ROE (‑21.95%) and net margin (‑14.53%), analysts expect about ‑1.96 EPS for the year, and the company has a market cap of roughly $1.37B.

Braskem S.A. (NYSE:BAK - Get Free Report) fell 6.7% on Wednesday . The stock traded as low as $3.48 and last traded at $3.3950. 1,221,723 shares changed hands during trading, a decline of 50% from the average session volume of 2,447,809 shares. The stock had previously closed at $3.64.

Analysts Set New Price Targets

Several brokerages have weighed in on BAK. Bank of America lowered Braskem from a "neutral" rating to an "underperform" rating and set a $2.80 price objective for the company. in a report on Thursday, March 26th. Zacks Research raised Braskem from a "hold" rating to a "strong-buy" rating in a report on Monday, April 6th. Citigroup raised Braskem from a "strong sell" rating to a "hold" rating in a report on Wednesday, April 1st. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a report on Monday. Finally, Bradesco Corretora lowered Braskem from an "outperform" rating to an "underperform" rating and set a $1.50 price objective for the company. in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $3.28.

Braskem Stock Down 5.4%

The stock has a market cap of $1.37 billion, a PE ratio of -0.75 and a beta of 1.74. The firm has a 50-day simple moving average of $3.98 and a 200-day simple moving average of $3.31.

Braskem (NYSE:BAK - Get Free Report) last posted its earnings results on Saturday, February 14th. The company reported ($2.33) earnings per share (EPS) for the quarter. The company had revenue of $2.56 billion for the quarter. Braskem had a negative return on equity of 21.95% and a negative net margin of 14.53%. On average, research analysts expect that Braskem S.A. will post -1.96 earnings per share for the current year.

Institutional Investors Weigh In On Braskem

Institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted its position in shares of Braskem by 444.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock worth $25,000 after acquiring an additional 7,003 shares in the last quarter. Quadrant Capital Group LLC lifted its position in shares of Braskem by 222.1% during the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock worth $38,000 after acquiring an additional 8,832 shares in the last quarter. Signaturefd LLC lifted its position in shares of Braskem by 50.1% during the fourth quarter. Signaturefd LLC now owns 13,524 shares of the company's stock worth $40,000 after acquiring an additional 4,513 shares in the last quarter. Ballentine Partners LLC purchased a new stake in shares of Braskem in the third quarter worth $34,000. Finally, Evergreen Capital Management LLC purchased a new stake in shares of Braskem in the fourth quarter worth $44,000.

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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