Braskem S.A. (NYSE:BAK) Given Consensus Recommendation of "Strong Sell" by Analysts

Key Points

• Analysts rate Braskem “Strong Sell”: Five of eight analysts recommend selling, while three advise holding. The average 12-month price target is $3.40.
• Shares remain under pressure: Braskem opened at $2.27, down 0.7%, well below its 50-day and 200-day moving averages of $2.89 and $3.58, respectively.
• The company beat quarterly earnings expectations with $0.69 in EPS versus a $0.21 consensus and revenue of $3.51 billion, but it reported a negative net margin of 13.72% and negative return on equity.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) have earned an average rating of "Strong Sell" from the eight analysts that are presently covering the firm, Marketbeat.com reports. Five research analysts have rated the stock with a sell rating and three have issued a hold rating on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $3.40.

Several brokerages have recently issued reports on BAK. Weiss Ratings restated a "sell (e+)" rating on shares of Braskem in a research report on Friday, July 17th. Bradesco Corretora lowered Braskem from an "outperform" rating to an "underperform" rating and set a $1.50 target price on the stock. in a research report on Tuesday, April 21st. Citigroup cut Braskem from a "neutral" rating to a "sell" rating in a research note on Thursday, June 25th. Zacks Research downgraded Braskem from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Finally, JPMorgan Chase & Co. lowered Braskem from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 30th.

Braskem Trading Down 0.7%

Shares of BAK stock opened at $2.27 on Thursday. The company has a market capitalization of $902.84 million, a P/E ratio of -0.54, a price-to-earnings-growth ratio of 0.13 and a beta of 1.62. The business's 50 day moving average is $2.89 and its two-hundred day moving average is $3.58. Braskem has a twelve month low of $2.20 and a twelve month high of $5.39.

Braskem (NYSE:BAK - Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The company reported $0.69 EPS for the quarter, beating 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 firm had revenue of $3.51 billion during the quarter, compared to the consensus estimate of $3.39 billion. As a group, equities analysts predict that Braskem will post 1.64 earnings per share for the current fiscal year.

Institutional Trading of Braskem

A number of large investors have recently modified their holdings of the company. Brooklands Fund Management Ltd purchased a new stake in shares of Braskem during the first quarter worth $2,013,000. Renaissance Technologies LLC increased its position in Braskem by 619.5% in the 4th quarter. Renaissance Technologies LLC now owns 265,488 shares of the company's stock worth $783,000 after purchasing an additional 228,588 shares during the last quarter. Jump Financial LLC increased its position in Braskem by 607.1% in the 2nd quarter. Jump Financial LLC now owns 263,771 shares of the company's stock worth $865,000 after purchasing an additional 226,467 shares during the last quarter. Marshall Wace LLP purchased a new stake in shares of Braskem during the 4th quarter worth about $477,000. Finally, Jane Street Group LLC lifted its holdings in shares of Braskem by 193.6% during the 4th quarter. Jane Street Group LLC now owns 220,898 shares of the company's stock valued at $652,000 after buying an additional 145,655 shares during the last quarter.

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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