Braskem (NYSE:BAK) Stock Price Up 7% - Here's Why

Key Points

• Braskem shares rose 7% to about $2.11 during Thursday trading, although volume was roughly 78% below the stock’s average session volume.
• Analyst sentiment remains strongly negative: Citigroup and JPMorgan downgraded the stock, while the consensus rating is “Strong Sell” from eight analysts, with a target price of $3.40.
• Braskem reported quarterly revenue of $4.20 billion and earnings of $1.61 per share, but continued to show weak profitability, including a negative 7.28% net margin and negative 67.75% return on equity.

Braskem S.A. (NYSE:BAK - Get Free Report) shares shot up 7% during trading on Thursday . The stock traded as high as $2.09 and last traded at $2.1070. Approximately 522,440 shares were traded during mid-day trading, a decline of 78% from the average session volume of 2,423,220 shares. The stock had previously closed at $1.97.

Analyst Ratings Changes

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

Braskem Price Performance

The stock's 50 day simple moving average is $2.18 and its two-hundred day simple moving average is $3.28. The firm has a market cap of $815.14 million, a P/E ratio of -0.84, a P/E/G 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 EPS for the quarter. The firm 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%. Equities research 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 modified their holdings of BAK. EverSource Wealth Advisors LLC boosted its stake in Braskem by 444.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock worth $25,000 after purchasing an additional 7,003 shares in the last quarter. Quadrant Capital Group LLC increased its stake in Braskem by 222.1% during the 4th 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 in the last quarter. Cetera Investment Advisers purchased a new position in Braskem in the first quarter worth about $51,000. Brevan Howard Capital Management LP purchased a new position in Braskem in the third quarter worth about $64,000. Finally, Dark Forest Capital Management LP lifted its stake in shares of Braskem by 94.7% in the third quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company's stock worth $78,000 after buying an additional 15,630 shares in the last quarter.

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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