Braskem (NYSE:BAK) Stock Price Up 5.4% - Still a Buy?

Key Points

• Braskem's stock price increased 5.4% to $2.63, with approximately 1.4 million shares traded, although this was a decline from the average daily volume.
• Recent analyst reports have seen multiple downgrades for Braskem, with UBS and Citigroup lowering ratings and price targets significantly, signaling a consensus rating of "Reduce."
• Braskem reported a quarterly earnings result of ($0.14) EPS, surpassing analysts' expectations, but shares still show concerns amid lowered annual EPS forecasts to -0.77.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price rose 5.4% on Thursday . The company traded as high as $2.65 and last traded at $2.63. Approximately 1,395,345 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 1,554,812 shares. The stock had previously closed at $2.49.

Analyst Ratings Changes

BAK has been the subject of a number of recent analyst reports. UBS Group lowered shares of Braskem from a "buy" rating to a "neutral" rating and reduced their price target for the company from $5.10 to $3.80 in a research report on Friday, September 26th. Citigroup lowered shares of Braskem from a "buy" rating to a "hold" rating in a research report on Friday, October 10th. Santander lowered shares of Braskem from a "neutral" rating to an "underperform" rating in a research report on Thursday, October 16th. Zacks Research lowered shares of Braskem from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 30th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Braskem in a research report on Wednesday, October 8th. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Braskem presently has a consensus rating of "Reduce" and an average price target of $4.40.

Braskem Trading Up 5.4%

The firm has a market capitalization of $1.05 billion, a PE ratio of -1.04 and a beta of 1.76. The stock has a 50 day simple moving average of $2.95 and a 200 day simple moving average of $3.30.

Braskem (NYSE:BAK - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.14) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.70) by $0.56. The firm had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $18.76 billion. As a group, equities analysts anticipate that Braskem S.A. will post -0.77 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Jane Street Group LLC increased its stake in Braskem by 130.3% during the 2nd quarter. Jane Street Group LLC now owns 49,301 shares of the company's stock valued at $162,000 after purchasing an additional 27,891 shares in the last quarter. Jump Financial LLC grew its holdings in shares of Braskem by 607.1% during the second quarter. Jump Financial LLC now owns 263,771 shares of the company's stock valued at $865,000 after buying an additional 226,467 shares during the last quarter. Centric Wealth Management purchased a new stake in shares of Braskem during the second quarter valued at approximately $128,000. Graham Capital Management L.P. bought a new stake in shares of Braskem during the first quarter valued at approximately $532,000. Finally, Banco BTG Pactual S.A. purchased a new position in Braskem in the 1st quarter worth approximately $248,000.

Braskem Company Profile

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.

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