Braskem (NYSE:BAK) Shares Gap Down - What's Next?

Key Points

• Braskem shares fell sharply, opening at $1.84 versus a prior close of $2.10 and last trading near $1.81, below both its 50-day and 200-day moving averages.
• Analyst sentiment has deteriorated, with JPMorgan, UBS and Citigroup downgrading the stock; Braskem now has a consensus “Strong Sell” rating and an average price target of $2.83.
• The company reported $4.20 billion in quarterly revenue and $1.61 in earnings per share, but continues to post weak profitability, including a negative net margin of 7.28% and negative return on equity of 67.75%.

Braskem S.A. (NYSE:BAK - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $2.10, but opened at $1.84. Braskem shares last traded at $1.8050, with a volume of 836,321 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. JPMorgan Chase & Co. downgraded shares of Braskem from an "overweight" rating to a "neutral" rating in a report on Tuesday, June 30th. UBS Group downgraded shares of Braskem from a "neutral" rating to a "sell" rating and lowered their target price for the company from $4.00 to $1.50 in a report on Tuesday. Citigroup lowered shares of Braskem from a "neutral" rating to a "sell" rating in a research report on Thursday, June 25th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Braskem in a report on Friday, July 17th. Two equities research analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, Braskem currently has a consensus rating of "Strong Sell" and an average target price of $2.83.

Braskem Stock Down 14.5%

The company's 50-day moving average is $2.16 and its two-hundred day moving average is $3.24. The company has a market cap of $715.49 million, a P/E ratio of -0.74, a price-to-earnings-growth ratio of 0.12 and a beta of 1.56.

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

Hedge Funds Weigh In On Braskem

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC increased 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 buying an additional 7,003 shares during the last quarter. Cetera Investment Advisers purchased a new position in shares of Braskem during the 1st quarter valued at $51,000. Citadel Advisors LLC purchased a new position in shares of Braskem during the 2nd quarter valued at $89,000. Ramsey Quantitative Systems bought a new position in shares of Braskem during the 2nd quarter worth $155,000. Finally, Private Advisor Group LLC bought a new position in shares of Braskem during the 1st quarter worth $157,000.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo. Established in 2002 through the combination of Odebrecht Química and the petrochemical company Copene, Braskem has developed into one of Latin America's major producers of thermoplastic resins and basic petrochemicals.

The company manufactures polyethylene, polypropylene and polyvinyl chloride (PVC), which are used in packaging, construction, automotive components, consumer goods and other industrial applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.