Braskem (NYSE:BAK) Hits New 12-Month Low - Time to Sell?

Key Points

• Braskem shares fell to a new 52-week low of $1.75, last trading at $1.735, while remaining below both its 50-day moving average of $2.43 and 200-day moving average of $3.45.
• Analyst sentiment is strongly negative: recent downgrades include JPMorgan to “neutral” and Citigroup to “sell,” with the stock carrying a consensus “Strong Sell” rating from MarketBeat analysts. The consensus price target is $3.40.
• Braskem reported $4.20 billion in quarterly revenue and $1.61 EPS, but continues to show financial weakness, including a negative net margin of 7.28% and negative return on equity of 67.75%.

Braskem S.A. (NYSE:BAK - Get Free Report) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $1.75 and last traded at $1.7350, with a volume of 294698 shares trading hands. The stock had previously closed at $1.84.

Wall Street Analyst Weigh In

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

Braskem Stock Down 7.3%

The business has a 50 day moving average of $2.43 and a 200 day moving average of $3.45. The company has a market capitalization of $679.61 million, a P/E ratio of -0.70, a price-to-earnings-growth ratio of 0.12 and a beta of 1.62.

Braskem (NYSE:BAK - Get Free Report) last released its quarterly earnings data on Friday, June 26th. The company reported $1.61 earnings per share (EPS) for the quarter. The business had revenue of $4.20 billion for the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. On average, research analysts anticipate that Braskem S.A. will post 1.51 EPS for the current year.

Institutional Investors Weigh In On Braskem

A number of hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC grew its position in Braskem by 444.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock worth $25,000 after acquiring an additional 7,003 shares in the last quarter. Quadrant Capital Group LLC raised its position in Braskem by 222.1% during the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock valued at $38,000 after purchasing an additional 8,832 shares during the period. Virtu Financial LLC lifted its stake in shares of Braskem by 28.7% in the 3rd quarter. Virtu Financial LLC now owns 44,587 shares of the company's stock valued at $108,000 after purchasing an additional 9,938 shares during the last quarter. Cetera Investment Advisers bought a new stake in shares of Braskem in the 1st quarter valued at approximately $51,000. Finally, Evergreen Capital Management LLC purchased a new position in shares of Braskem in the 4th quarter worth approximately $44,000.

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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