Braskem (NYSE:BAK) Trading 9.9% Higher - Here's What Happened

Key Points

• Braskem shares jumped 9.9% to $2.165 during Wednesday trading, although volume was 83% below the stock’s average daily volume.
• Analyst sentiment remains bearish: the stock has an average rating of “Strong Sell”, with three Hold ratings and five Sell ratings; the consensus price target is $3.40.
• Braskem reported quarterly revenue of $4.20 billion and EPS of $1.61, but continued to post a negative net margin of 7.28% and negative return on equity of 50.83%.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) were up 9.9% during trading on Wednesday . The stock traded as high as $2.10 and last traded at $2.1650. 387,572 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 2,344,772 shares. The stock had previously closed at $1.97.

Wall Street Analyst Weigh In

Several analysts have weighed in on BAK shares. Weiss Ratings reiterated a "sell (e+)" rating on shares of Braskem in a research note on Friday, July 17th. JPMorgan Chase & Co. cut shares of Braskem from an "overweight" rating to a "neutral" rating in a report on Tuesday, June 30th. Zacks Research downgraded shares of Braskem from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 18th. Citigroup cut Braskem from a "neutral" rating to a "sell" rating in a research note on Thursday, June 25th. Finally, Bradesco Corretora lowered Braskem from an "outperform" rating to an "underperform" rating and set a $1.50 price objective on the stock. in a research note on Tuesday, April 21st. Three equities 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, the stock presently has an average rating of "Strong Sell" and a consensus price target of $3.40.

Braskem Price Performance

The firm has a market cap of $847.02 million, a P/E ratio of -0.88, a PEG ratio of 0.12 and a beta of 1.62. The company's 50-day moving average is $2.58 and its two-hundred day moving average is $3.50.

Braskem (NYSE:BAK - Get Free Report) last issued its earnings results on Friday, June 26th. The company reported $1.61 EPS for the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 50.83%. The company had revenue of $4.20 billion during the quarter. On average, analysts expect that Braskem S.A. will post 1.52 EPS for the current fiscal year.

Institutional Investors Weigh In On Braskem

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its stake in shares of Braskem by 444.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock valued at $25,000 after purchasing an additional 7,003 shares during the last quarter. Quadrant Capital Group LLC lifted its position in shares of 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 buying an additional 8,832 shares during the last quarter. Evergreen Capital Management LLC acquired a new stake in Braskem in the fourth quarter valued at about $44,000. Cetera Investment Advisers acquired a new stake in Braskem in the first quarter valued at about $51,000. Finally, Brevan Howard Capital Management LP bought a new position in Braskem in the third quarter valued at about $64,000.

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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