Braskem (NYSE:BAK) Stock Price Up 7.2% - What's Next?

Key Points

• Braskem shares rose 7.2% to $1.7150, despite trading volume falling 69% below its average daily level.
• Analyst sentiment remains strongly negative: the consensus rating is “Strong Sell”, with eight analysts assigning either Hold or Sell ratings and a consensus price target of $2.56.
• The company reported $4.20 billion in quarterly revenue and $1.61 EPS, but continues to show 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) shot up 7.2% on Friday. The company traded as high as $1.7050 and last traded at $1.7150. 732,536 shares traded hands during trading, a decline of 69% from the average daily volume of 2,333,905 shares. The stock had previously closed at $1.60.

Analysts Set New Price Targets

Several research firms have recently commented on BAK. Weiss Ratings restated a "sell (e+)" rating on shares of Braskem in a report on Thursday, October 15th. HSBC cut Braskem from a "buy" rating to a "hold" rating and decreased their price target for the company from $6.50 to $1.50 in a research note on Monday, September 28th. Citigroup downgraded shares of Braskem from a "neutral" rating to a "sell" rating in a report on Thursday, June 25th. Wall Street Zen upgraded shares of Braskem to a "hold" rating in a research note on Saturday, October 17th. Finally, JPMorgan Chase & Co. downgraded shares of Braskem from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 30th. Three investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Strong Sell" and a consensus price target of $2.56.

Braskem Stock Up 6.6%

The company has a market capitalization of $679.61 million, a price-to-earnings ratio of -0.70, a PEG ratio of 0.10 and a beta of 1.56. The stock's 50-day simple moving average is $1.77 and its two-hundred day simple moving average is $2.76.

Braskem (NYSE:BAK - Get Free Report) last released its earnings results on Friday, June 26th. The company reported $1.61 earnings per share (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 during the quarter. On average, sell-side analysts forecast that Braskem S.A. will post 1.58 EPS for the current year.

Institutional Trading of Braskem

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ramsey Quantitative Systems grew its position in Braskem by 24.7% in 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. raised its holdings in Braskem by 393.2% in the third quarter. SBI Securities Co. Ltd. now owns 25,105 shares of the company's stock valued at $36,000 after acquiring an additional 20,015 shares in the last quarter. Engineers Gate Manager LP increased its position in shares of Braskem by 192.8% in the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company's stock valued at $166,000 after purchasing an additional 44,905 shares during the last quarter. Citadel Advisors LLC purchased a new stake in shares of Braskem in the 2nd quarter valued at approximately $89,000. Finally, Bank of America Corp DE increased its holdings in Braskem by 178,471.4% in the first quarter. Bank of America Corp DE now owns 50,000 shares of the company's stock valued at $183,000 after buying an additional 49,972 shares during the last quarter.

Braskem Company Profile

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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