Braskem (NYSE:BAK) Trading Down 5.6% on Disappointing Earnings

Key Points

• Braskem shares fell 5.6% to about $1.96 after the company reported disappointing quarterly results, including $1.61 in EPS and $4.20 billion in revenue.
• The company posted a negative net margin of 13.72% and negative return on equity of 23.17%, while its stock remains well below its 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: the consensus rating is “Strong Sell”, with three Hold ratings, five Sell ratings and an average price target of $3.40.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price traded down 5.6% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $1.98 and last traded at $1.9550. 1,717,022 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 2,339,068 shares. The stock had previously closed at $2.07.

The company reported $1.61 EPS for the quarter. The company had revenue of $4.20 billion during the quarter. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%.

Wall Street Analyst Weigh In

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

Institutional Trading of Braskem

A number of institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC lifted its holdings 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 valued at $25,000 after purchasing an additional 7,003 shares in the last quarter. Quadrant Capital Group LLC increased its holdings in Braskem by 222.1% in 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 in the last quarter. Evergreen Capital Management LLC purchased a new position in Braskem in the 4th quarter worth about $44,000. Cetera Investment Advisers bought a new position in Braskem during the 1st quarter valued at about $51,000. Finally, Brevan Howard Capital Management LP bought a new position in Braskem during the 3rd quarter valued at about $64,000.

Braskem Trading Down 5.0%

The company's 50 day simple moving average is $2.67 and its 200-day simple moving average is $3.54. The firm has a market cap of $783.65 million, a P/E ratio of -0.47, a PEG ratio of 0.13 and a beta of 1.62.

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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