Braskem (NYSE:BAK) Trading Up 5.8% - Time to Buy?

Key Points

• Braskem shares rose 5.8% on Wednesday, trading as high as $2.46 after closing at $2.32 the previous day, though volume was well below average.
• Analyst sentiment remains very weak, with multiple firms cutting ratings and the stock carrying an average “Strong Sell” rating and a $3.40 average price target.
• Recent earnings beat expectations: Braskem reported $0.69 EPS versus $0.21 expected and revenue of $3.51 billion versus $3.39 billion, but profitability remained negative with a 13.72% net margin.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price was up 5.8% during trading on Wednesday . The stock traded as high as $2.46 and last traded at $2.4550. 596,424 shares traded hands during trading, a decline of 75% from the average daily volume of 2,423,825 shares. The stock had previously closed at $2.32.

Analyst Ratings Changes

Several research firms have recently issued reports on BAK. Zacks Research lowered Braskem from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a research report on Friday. Bank of America downgraded Braskem from a "neutral" rating to an "underperform" rating and set a $2.80 price objective for the company. in a research note on Thursday, March 26th. Bradesco Corretora lowered Braskem from an "outperform" rating to an "underperform" rating and set a $1.50 target price for the company. in a research report on Tuesday, April 21st. Finally, Citigroup cut Braskem from a "neutral" rating to a "sell" rating in a research note on Thursday, June 25th. 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 currently has an average rating of "Strong Sell" and an average price target of $3.40.

Braskem Trading Up 5.4%

The stock's 50-day moving average price is $3.44 and its two-hundred day moving average price is $3.63. The stock has a market capitalization of $974.59 million, a P/E ratio of -0.58, a P/E/G ratio of 0.13 and a beta of 1.61.

Braskem (NYSE:BAK - Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The company reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.21 by $0.48. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%. The company had revenue of $3.51 billion for the quarter, compared to analysts' expectations of $3.39 billion. On average, equities research analysts predict that Braskem S.A. will post 1.64 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in BAK. Signaturefd LLC increased its stake in shares of Braskem by 50.1% in the fourth quarter. Signaturefd LLC now owns 13,524 shares of the company's stock worth $40,000 after purchasing an additional 4,513 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Braskem by 444.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock valued at $25,000 after buying an additional 7,003 shares in the last quarter. Quadrant Capital Group LLC boosted 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 during the period. Virtu Financial LLC boosted its holdings in Braskem by 28.7% in the 3rd quarter. Virtu Financial LLC now owns 44,587 shares of the company's stock worth $108,000 after buying an additional 9,938 shares during the period. Finally, Cetera Investment Advisers bought a new position in Braskem in the 1st quarter worth approximately $51,000.

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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