Braskem (NYSE:BAK) Stock Price Down 6.8% - Time to Sell?

Key Points

• Braskem shares fell 6.8% to about $1.86 in mid-day trading, with volume significantly below the stock’s average. The stock is trading well below its 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: Braskem has a consensus rating of “Strong Sell”, with five Sell ratings and three Holds, despite a consensus price target of $3.40.
• The company reported $4.20 billion in quarterly revenue and $1.61 in earnings per share, but continues to show weak profitability, including a negative net margin of 7.28% and negative return on equity of 67.75%.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price was down 6.8% during mid-day trading on Monday . The company traded as low as $1.85 and last traded at $1.8550. Approximately 902,601 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 2,338,911 shares. The stock had previously closed at $1.99.

Wall Street Analyst Weigh In

A number of research firms recently commented on BAK. Weiss Ratings reiterated a "sell (e+)" rating on shares of Braskem in a research note on Friday, July 17th. JPMorgan Chase & Co. lowered shares of Braskem from an "overweight" rating to a "neutral" rating in a research report on Tuesday, June 30th. Zacks Research lowered Braskem from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 18th. Finally, Citigroup lowered Braskem from a "neutral" rating to a "sell" rating in a research note on Thursday, June 25th. Three research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Braskem currently has a consensus rating of "Strong Sell" and a consensus target price of $3.40.

Braskem Stock Down 6.8%

The firm has a market capitalization of $739.41 million, a PE ratio of -0.76, a price-to-earnings-growth ratio of 0.12 and a beta of 1.62. The firm has a 50-day moving average price of $2.47 and a 200 day moving average price of $3.47.

Braskem (NYSE:BAK - Get Free Report) last released its earnings results on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. The company had revenue of $4.20 billion during the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. Equities research analysts expect that Braskem S.A. will post 1.51 earnings per share for the current year.

Hedge Funds Weigh In On Braskem

A number of institutional investors and hedge funds have recently made changes to their positions in BAK. EverSource Wealth Advisors LLC increased its position in 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 buying an additional 7,003 shares during the period. Quadrant Capital Group LLC boosted its stake in Braskem by 222.1% during the 4th quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock worth $38,000 after purchasing an additional 8,832 shares during the period. Virtu Financial LLC increased its stake in Braskem by 28.7% in the third quarter. Virtu Financial LLC now owns 44,587 shares of the company's stock valued at $108,000 after purchasing an additional 9,938 shares during the period. Cetera Investment Advisers acquired a new stake in shares of Braskem during the first quarter worth about $51,000. Finally, Evergreen Capital Management LLC acquired a new position in Braskem in the 4th quarter valued at about $44,000.

About Braskem

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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