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

Key Points

• Braskem shares plunged to a new 52-week low, trading as low as $0.92 before last changing hands at $1.0950, down sharply from the prior close of $1.70.
• Analyst sentiment is strongly bearish: the stock has a consensus rating of “Strong Sell”, with five Sell ratings and three Holds; the average price target is $2.56, while several firms recently downgraded the shares.
• Braskem reported $4.20 billion in quarterly revenue and $1.61 in earnings per share, but posted a negative 7.28% net margin and negative 67.75% return on equity. Its shares also remain well below their 50-day and 200-day moving averages.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price hit a new 52-week low during trading on Monday. The stock traded as low as $0.92 and last traded at $1.0950, with a volume of 16,428,477 shares. The stock had previously closed at $1.70.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of Braskem to a "hold" rating in a research report on Saturday, October 17th. JPMorgan Chase & Co. cut shares of Braskem from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 30th. HSBC downgraded shares of Braskem from a "buy" rating to a "hold" rating and dropped their target price for the stock from $6.50 to $1.50 in a report on Monday, September 28th. UBS Group lowered shares of Braskem from a "neutral" rating to a "sell" rating and cut their target price for the company from $4.00 to $1.50 in a research note on Tuesday, September 15th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Braskem in a report on Thursday, October 15th. Three equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Strong Sell" and an average price target of $2.56.

Braskem Price Performance

The stock has a fifty day moving average price of $1.77 and a 200-day moving average price of $3.07. The company has a market cap of $436.47 million, a PE ratio of 0.61, a price-to-earnings-growth ratio of 0.10 and a beta of 1.56.

Braskem (NYSE:BAK - Get Free Report) last issued its quarterly earnings results on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. The business had revenue of $4.20 billion for the quarter. On average, equities analysts anticipate that Braskem S.A. will post 1.58 earnings per share for the current year.

Institutional Investors Weigh In On Braskem

A number of institutional investors have recently bought and sold shares of the business. Ramsey Quantitative Systems grew its stake in Braskem by 24.7% during the 3rd quarter. Ramsey Quantitative Systems now owns 79,000 shares of the company's stock valued at $115,000 after acquiring an additional 15,627 shares in the last quarter. SBI Securities Co. Ltd. increased its holdings in shares of Braskem by 393.2% in the 3rd quarter. SBI Securities Co. Ltd. now owns 25,105 shares of the company's stock valued at $36,000 after purchasing an additional 20,015 shares during the period. Engineers Gate Manager LP lifted its position in shares of Braskem by 192.8% in the second quarter. Engineers Gate Manager LP now owns 68,198 shares of the company's stock worth $166,000 after purchasing an additional 44,905 shares in the last quarter. Citadel Advisors LLC purchased a new stake in shares of Braskem in the second quarter worth approximately $89,000. Finally, Bank of America Corp DE lifted its position in shares of Braskem by 178,471.4% in the first quarter. Bank of America Corp DE now owns 50,000 shares of the company's stock worth $183,000 after purchasing an additional 49,972 shares in the last quarter.

About Braskem

Braskem SA is a Brazil-based petrochemical company that produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture and other industrial applications. Its product portfolio includes polyethylene, polypropylene and polyvinyl chloride, as well as inputs such as ethylene, propylene and other petrochemical intermediates.

Founded in 2002 through the combination of several Brazilian petrochemical businesses, Braskem developed into one of Latin America's largest petrochemical producers.

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