Braskem (NYSE:BAK) Stock Jumps 9.4% - What's Next?

Key Points

• Braskem shares jumped 9.4% to $1.695 in Monday trading, though volume was 87% below the average session level.
• Analyst sentiment remains sharply negative: Braskem has a consensus rating of “Strong Sell”, with six sell ratings, three holds, and a consensus price target of $2.56.
• The company reported $4.20 billion in quarterly revenue and $1.61 in EPS, but continues to face 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 stock price was up 9.4% on Monday. The stock traded as high as $1.7599 and last traded at $1.6950. Approximately 294,669 shares were traded during trading, a decline of 87% from the average session volume of 2,343,189 shares. The stock had previously closed at $1.55.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on BAK. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Braskem in a research report on Friday, July 17th. Citigroup cut shares of Braskem from a "neutral" rating to a "sell" rating in a research report on Thursday, June 25th. JPMorgan Chase & Co. downgraded 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 decreased their price objective for the company from $6.50 to $1.50 in a research note on Monday, September 28th. Finally, UBS Group cut Braskem from a "neutral" rating to a "sell" rating and cut their target price for the stock from $4.00 to $1.50 in a research report on Tuesday, September 15th. Three investment analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat.com, Braskem presently has a consensus rating of "Strong Sell" and a consensus price target of $2.56.

Braskem Stock Up 6.1%

The firm has a market capitalization of $655.70 million, a price-to-earnings ratio of -0.68, a P/E/G ratio of 0.09 and a beta of 1.56. The company has a fifty day moving average price of $1.92 and a two-hundred day moving average price of $2.98.

Braskem (NYSE:BAK - Get Free Report) last announced its earnings results on Friday, June 26th. The company reported $1.61 EPS for the quarter. Braskem had a negative net margin of 7.28% and a negative return on equity of 67.75%. 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 fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of BAK. Engineers Gate Manager LP grew its holdings in shares of Braskem by 192.8% during the second quarter. Engineers Gate Manager LP now owns 68,198 shares of the company's stock worth $166,000 after buying an additional 44,905 shares during the last quarter. Citadel Advisors LLC acquired a new position in Braskem in the 2nd quarter valued at about $89,000. Ramsey Quantitative Systems purchased a new stake in Braskem during the 2nd quarter valued at approximately $155,000. Bank of America Corp DE raised its stake in Braskem by 178,471.4% during the 1st quarter. Bank of America Corp DE now owns 50,000 shares of the company's stock valued at $183,000 after acquiring an additional 49,972 shares during the last quarter. Finally, Brooklands Fund Management Ltd acquired a new stake in Braskem during the 1st quarter worth approximately $2,013,000.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo, Brazil. The company produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture, and other industrial applications.

Its product portfolio includes olefins such as ethylene and propylene, polyolefins including polyethylene and polypropylene, polyvinyl chloride (PVC), caustic soda, and other chemical intermediates. Braskem also markets renewable polyethylene under the “I'm green” brand, which is made from sugarcane-based ethanol.

Established in 2002 through the consolidation of petrochemical assets in Brazil, Braskem expanded internationally through subsequent acquisitions and investments.

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