Braskem (NYSE:BAK) Shares Gap Up - Still a Buy?

Key Points

• Braskem shares opened higher, rising from a previous close of $1.92 to $2.01 before trading near $2.00, though the stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: recent firms downgraded the stock, with three Hold ratings and five Sell ratings producing a MarketBeat consensus of “Strong Sell” and a $3.40 price target.
• Braskem reported $1.61 in quarterly EPS on $4.20 billion in revenue, but continues to show a negative net margin and return on equity, underscoring its ongoing financial challenges.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $1.92, but opened at $2.01. Braskem shares last traded at $1.9960, with a volume of 83,857 shares changing hands.

Analyst Upgrades and Downgrades

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

Braskem Stock Performance

The business has a 50 day simple moving average of $2.19 and a two-hundred day simple moving average of $3.30. The firm has a market capitalization of $799.19 million, a P/E ratio of -0.83, a price-to-earnings-growth ratio of 0.11 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 (EPS) for the quarter. The firm had revenue of $4.20 billion during the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. On average, equities analysts anticipate that Braskem S.A. will post 1.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Braskem

A number of institutional investors have recently made changes to their positions in BAK. EverSource Wealth Advisors LLC lifted its holdings 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 worth $25,000 after acquiring an additional 7,003 shares during the last quarter. Quadrant Capital Group LLC increased its stake in Braskem by 222.1% in the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock valued at $38,000 after acquiring an additional 8,832 shares during the last quarter. Cetera Investment Advisers purchased a new stake in Braskem during the first quarter valued at about $51,000. Brevan Howard Capital Management LP purchased a new stake in Braskem during the third quarter valued at about $64,000. Finally, Dark Forest Capital Management LP lifted its stake in Braskem by 94.7% during the third quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company's stock worth $78,000 after purchasing an additional 15,630 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.

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.